The decline of NFT is now: the liver can’t bear it and can’t roll it

It’s time to change the whitelist system .

A few days ago, a friend asked me: I haven’t paid attention to NFT for a few months, why are you still vying for PFP?

I also refuted it: there is a lot of traffic coming from outside the circle, giants are entering the market one after another, and applications are blooming everywhere… But after thinking about it carefully, for an ordinary investor participating in NFT, the most time is indeed still research and grabbing New little picture, after all, who doesn’t want to be a diamond hand and buy the next BAYC boring ape?

However, recently, I feel more and more that the liver can’t afford it, and I can’t roll it anymore.

First of all, the Gas War of the popular project Public Sale is no longer a battlefield for ordinary players, and the scientists who wrote the scripts have already started to write each other; secondly, the threshold of the whitelist is getting higher and higher, chatting, pulling people, doing second creation, liver for several weeks It may not be available. The whitelist OTC market transactions are even more chaotic. The pricing is all based on the head, and there are even scandals that the well-known community MODs have enriched their own pockets. The most important thing is that after a lot of tossing, it may not be able to make money.

According to NFTScan data, in the past 7 days, more than 840,000 NFTs have been born on the Ethereum chain, and many projects have become garbage on the chain as soon as they are born.

On the surface, most NFT projects that are active in the community are still popular and will not “break”, but in the process of project sale, the mint price is often only the tip of the iceberg of cost, including “hidden costs”, many recent popular projects In fact, it has already started to “break”.

Rolling to the end, it’s hard to cover

Let’s talk about “scientists roll scientists” first. Take Karafuru, one of the most popular projects recently (Opensea’s 7th trading volume ranked first) as an example. According to statistics from Twitter user @sethwizard0x, the average gas cost of scientists is actually more than 4.57 ETH , calculated with mint 2 NFTs per person, plus the mint price of 0.2 ETH, the cost of each is 2.48 ETH.

The decline of NFT is now: the liver can't bear it and can't roll it

Courtesy of @sethwizard0x

The current floor price of Karufuru is 3 ETH, and it once dropped to about 2.3 ETH on the day of opening the box. It can be seen that being a scientist is not a business that can make a profit, not to mention that Karafuru is one of the best-performing projects recently. The myth of scientists who got rich by mint NFT projects is long gone.

Let’s talk about the whitelist (WL). There have been many articles about how difficult it is to grab a whitelist these days.

The whitelist system began to emerge in the third quarter of 2021. The essence is to reward “labor is wealth” fairly and reward members who contribute to the community and drive traffic. Common ones include rewarding high-frequency users, incentives to attract new people to the community, and encouragement Erchuang cooperates with meme, KOL, rewards users who win in quiz-solving games, community activities, lottery, etc.

At first, the whitelist mechanism could effectively motivate the active members of the community and alleviate the Gas War of the Public Round, but things changed soon. In the early days, the NFT community with several thousand people and ten thousand people on Discord was already active, so be an active user. Getting a whitelist is not difficult. 

With the explosion of NFTs, especially after PhantaBear was replaced by Jay Chou’s avatar, a group of celebrities blessed, and prices soared, a large number of new Chinese people flowed in. Today’s new project Discord has tens of thousands of people who are ordinary, and ten thousand people. There are not a few tens of thousands or hundreds of thousands of people. 

As a result, the liver whitelist has a complete industrial chain, and a large number of “studios” have emerged that specialize in obtaining the whitelist. They hire college students to chat to pull people, hire painters to paint, and write programs to check their activity. These are the most basic, and even There are those who perform 18 kinds of talents, those who sell miserably to the project side, and those who have a live performance recently… It can be said that there is no need to do anything.

The decline of NFT is now: the liver can't bear it and can't roll it

Screenshots circulated in the community

It’s time to change the whitelist system

Most of the individuals who are on the whitelist regard it as a treasure and will wait to mint themselves, while the whitelist studios that have already paid a lot of manpower and technical costs often choose to make money before the mint, and naturally there are clearly marked prices. Whitelist secondary markets and OTC communities.

Some projects have started boycotting whitelisting studios in an attempt to find these wallet addresses and cull them.

The decline of NFT is now: the liver can't bear it and can't roll it

But where there is demand, there is a market. Those who bought the whitelist before have at least some room to make money, but recently they have started to lose money on a large scale.

For example, HYPEBEARS is one of the most popular projects recently, with more than 360,000 people on Discord and 240,000 followers on Twitter. From this data, it can be seen that it is not easy to have a whitelist of livers, and the price of the off-site whitelist before the release is also fired. More than 1 ETH, the floor is up to 1.6 ETH after the sale, but the price has dropped all the way to a minimum of 0.2 ETH after opening the box.

Not only the blood loss at the second level, the blood loss when buying the whitelist, but even the mint (mint price is 0.4 ETH) has already started to lose money.

The decline of NFT is now: the liver can't bear it and can't roll it

Oepnsea Price Trends by HYPEBEARS

The failure of HYPEBEARS also exposed another problem. Nowadays, it usually takes a few days for NFTs to go from mint to unboxing. Unboxing has become a dividing point. In the early stage, everyone can only see what the project looks like at Sneak-peak in the community. , and the “true content” that does not meet expectations often appears after a large number of open boxes .

Many project parties rushed ducks to the shelves. In order to catch up with the popularity, they made shoddy production, and they talked about the cutting-edge trends in design. When opening the box, it was obvious that they had hired some painters to rush work overnight. Respect the market.

HYPEBEARS is called “ugly enough to refresh the three views”, “visual garbage”, “not as good as Taobao’s art”, which does not meet market expectations at all. Originally thought it was a moving image, and finally it was static, originally thought it was advanced 3D, and finally it was a lump of plasticine.

The decline of NFT is now: the liver can't bear it and can't roll it

HYPEBEARS Opensea Screenshots

The decline of NFT is now: the liver can't bear it and can't roll it

A popular satirical HYPEBEARS meme in the community

In addition, we who open the blind box always look forward to opening the rare one, holding 1/1 and becoming a diamond hand, but most of the time we open the floor.

In response to this problem, Odaily Planet Daily has also discussed with industry people before. In fact, the project party is likely to adjust the random numbers, and ordinary players will skip those numbers when mint, and even they can modify the metadata to make Your rare item becomes a common item.

It’s always the ordinary investor who gets hurt

In addition, the issuance of NFT and the operation of the fan community are mostly carried out in the form of DAO, most people are anonymous, and most communities also use Mod (moderator: administrator) for daily communication and maintenance. When there is a dispute of interest , it is often a piece of chicken feathers, and it is not uncommon to tear it apart. 

Recently, 9x9x9, the core contributors of well-known NFT KOLs, 721 CLUB and OpenDAO, posted several tweets in succession, accusing the former Mod of using the brands of Club721 and OpenDAO to obtain a whitelist for community cooperation, enriching his own pockets, and keeping most of it for himself. For example, CoolMan talked about the cooperation of 100 whitelists, but in the end there were only 30 in the community lottery.

The decline of NFT is now: the liver can't bear it and can't roll it

The ex-mod quickly counterattacked, saying that 9x9x9 drove away the digital ex-mod of 721, occupying the nest, and revealed that his real identity was Qu Jiawei, the CEO of the German exchange who ran away after the ICO in 2019, and asked each The NFT project team stopped cooperating with OpenDAO. 9x9x9 later denied it and said it would remain anonymous.

The decline of NFT is now: the liver can't bear it and can't roll it

No matter what is right or wrong, and what the real situation is, this not only exposes the difficulty of DAO governance in the face of benefit distribution, but also reflects the level of confusion in the NFT market today. 

The “white list” is like a black box. It’s hard to tell who gets it, who is making a profit, and how many tricks there are. 

As an ordinary NFT enthusiast who takes over at the second level, it is easy to feel tired after being cut a few times.

It’s hard not to be reminiscent of the once smash hit IEOs and IDOs. In the beginning, the platform carefully selected the number of projects and the number of investors. If you grab it, you will earn it. Long-term holdings can be multiplied by dozens or even hundreds of times. Later, the dividends gradually weakened and the frequency became higher. Many people are at their peak when they go online, and most people choose to sell when they go online. In the end, even participating in IDO may be cut off, and it is not uncommon for projects to break.

In the process, there are also constant disputes of interests between the project party and the trading platform.

In the end, it is always the ordinary investor who gets hurt. The market that loses ordinary investors will gradually be drained of vitality, projects will be intertwined, and development will be stagnant. We have experienced this cycle too many times.

NFT is a promising early market, with many conscientious projects and high-quality teams, but it is also full of countless chaos and scams. It is time for the project issuance system and platform to further protect retail investors.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-decline-of-nft-is-now-the-liver-cant-bear-it-and-cant-roll-it/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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