The digital collection “Smash Bros.” is about to change in the 100 billion market?

If there is a “hot word list” in the Internet circle in 2021, NFT, Web3.0 and Metaverse must be on the list.

During that time, Facebook changed its name to Meta, the famous Silicon Valley top venture capital firm Andreessen Horowitz added Web 3.0, and the NFT product “TheMerge” created by the anonymous foreign artist Pak was priced as high as 610 million yuan.

The digital collection "Smash Bros." is about to change in the 100 billion market?

However, in just one year, these concepts that were popular all over the Internet last year quickly “cooled down” . In the Chrome browser, the search trend of “Metaverse” and “NFT” has been on the decline since the beginning of this year. According to Meta’s disclosure According to the financial report for the fourth quarter of 2021, Reality Labs, the division responsible for the Metaverse business, will have a net loss of about $10.2 billion in 2021; the price of NFT products generated by Twitter CEO’s first tweet plummeted by 99% within a year.

In such a downward trend, digital collections closely related to NFTs are rising against the trend . According to statistics, as of May 2022, at least 20 domestic listed companies have launched digital collection trading platforms. What is digital collection? How does it relate to the concept of NFT? What changes will it bring to the market?

It’s not just “BATs” who are attracted

Many people often equate “NFT” with “digital collection” at first, but this is not the case.

The so-called “digital collection” itself refers to the use of blockchain technology to generate a unique digital certificate corresponding to a specific work and artwork. On the basis of protecting its digital copyright, it can realize authentic and credible digital distribution, purchase, collection and use. .

“NFT” refers to a non-fungible token (Non-Fungible Token) based on blockchain technology, which can be regarded as a proof of ownership of digital assets using blockchain technology. It has inseparable, irreplaceable and unique characteristics.

The digital collection "Smash Bros." is about to change in the 100 billion market?

There are NFTs in digital collections, but not only NFTs. Si Xueming, director of the Blockchain Special Committee of the China Computer Federation, recently stated at the “2022 Trusted Blockchain Ecological Conference and the First Trust Technology Conference” that in the field of digital assets, blockchain digital collections have the largest number of applications, accounting for 97% of the total number of blockchain digital asset applications. Among them, ordinary digital collections accounted for 68%, and 32% were issued through the NFT trading platform in the form of NFT.

However, this does not prevent the entrants from going forward. At present, the “players” who are eyeing digital collections can be roughly divided into the following three categories :

The first category is Internet giants, such as Ali, Tencent, Baidu, NetEase, JD.com, etc.; the second category is some leading companies in various industries at home and abroad, such as Tianxiaxiu, Skyworth, LV, Nike, etc.; the third category is It is a part of enterprises with a “state-owned” background. For example, Tianyi E-Commerce Co., Ltd., a licensed payment institution under China Telecom, launched the “Linyi Digital Artwork Zone”, and UnionPay launched the “Digital Artwork Zone” in the UnionPay app before the Spring Festival this year. Official authoritative media such as the “Collection” applet, People’s Daily Online and Jiefang Daily have also launched corresponding digital collections on the anniversary of the founding of the publication.

Shi Fei, chairman of Shanghai Zun’an Culture, said in an interview with New Retail Business Review, “There are now more than 400 companies in China engaged in digital collection-related businesses.”

Why are big Internet companies, leading companies in the food, beverage, clothing, and automobile industries in the real economy, and even those with a “state-owned” background, so interested in the “new thing” of digital collections?In order to seize this market, what have they done?

Conquering digital collections from three dimensions

At present, the market is optimistic about the digital collection market, in fact, mainly for three reasons :

The first is great potential . In China, relevant statistics show that in 2021, a total of about 4.56 million digital collections will be sold in my country, with a total issuance value of about 150 million yuan. It is expected to maintain a growth rate of about 150% in the next few years. The Leopard Research Institute estimates that my country’s digital collection market will reach 30 billion yuan in 2026.

According to the statistics of Dune Anlytics, a foreign professional digital collection data platform, in the first quarter of this year, the transaction scale of the foreign digital collection market has exceeded 180 billion yuan. Among them, Opensea, the largest overseas digital collection trading platform, has a single quarter transaction volume of 110 US dollars, or about 70 billion yuan. Yuan Renminbi.

The combined potential market size exceeds 100 billion, and it has not been extensively developed. The “digital collection” market is a “blue ocean”, and it is a logical result to attract so many heavyweight “guests”.

Second is the effect .

“They pursue independence and individual expression, and they have a unified cultural consensus; they are exquisite and save money, and they spend a lot of money for their ideals; they are a generation that is easy to be planted, and at the same time they are creating and leading the trend… Most Divided Generation'”

This is the interpretation of Gen Z in the “Decoding Gen Z 2022” report. Obviously, today’s Generation Z pursues hedonism and pursues maverick and “pleasant”. Few people in this type of group are willing to bump into shirts, headshots, and emojis with others, they just want to express their “unique” self .

In this context, the immutability of blockchain technology and the uniqueness of NFTtoken have attached rare attributes to avatars, emoticons, etc., turning these ordinary pictures into “limited edition” digital collections, igniting With the enthusiasm of Generation Z, a large number of digital collection discussion groups established by young people began to emerge. For companies that want to “grab” young people, using digital collections for publicity is also easier to achieve results that exceed expectations .

The digital collection "Smash Bros." is about to change in the 100 billion market?

The last is high revenue . Based on the outstanding scarcity and collection value of digital collections in publicity, it is common for tens of thousands of digital collections to be “sold out in seconds”. For example, in February, 100 digital collections of “Shaanxi Noodles + Winter Olympics” were snapped up in less than 30 minutes. In March, hand-painted digital collections in the shape of the Datang Furong Garden Lantern Exhibition were sold on Ali’s auction platform “Second Space” and many more.

According to the “Beijing Youth Daily” report, the daily circulation of digital collections has also increased from an average of one million yuan a day in early January this year to tens of millions of yuan, an increase of more than 10 times. There are also six central media in China that have released more than 400,000 digital collections, with sales of more than 6 million yuan. For some companies, especially the cultural and tourism industries affected by the epidemic, digital collections have become an important source of income .

With great potential, good effect, and high income, the above-mentioned companies have slightly different focus when hunting for the “fat” of digital collections .

Some start with products, such as the Henan Museum released the digital collection of “Fuhao Owl Zun”, the Hubei Provincial Museum released the digital collection of “Goujian Sword of the King of Yue”, and the Shaanxi History Museum released the digital collection of Qin Duhu Fu and “Fugui Hengtong” cloisonne beast head cup; Some start with platforms, such as Ali’s Whale Scouting Platform, Tencent’s Magic Core Platform, and Baidu’s Baidu Super Chain. These companies intend to become platform builders for digital collections.

There are also some companies that have taken a different approach, trying to start with hardware and become the “hydropower and coal” of the digital collection industry . On July 13, Kutianxia (Chongqing) Digital Technology Co., Ltd., a subsidiary of Tianxia Show, jointly invested and established by Xingkuang Technology Co., Ltd. and Skyworth Group, developed the first digital collection display hardware, adding a “digital picture frame” to the “digital collection”. It is said that it can not only present a digital print image of the original art painting that is highly realistic and restore the paper quality, but also provide safe and traceable copyright protection for the artwork.

Which is better or worse is not listed, but what is certain is that this piece of “fat” cannot be easily eaten, whether it is from the product, hardware or platform.

Digital collections are not doing so well

Digital collections are an important node for the development of digital culture, the establishment of digital identity and the establishment of digital order, but it is necessary to pay attention to the fact that there are still many chaos in the industry that need to be restricted and guided.

On the one hand, even digital assets are at risk of being stolen . While the digital signature technology used in the blockchain ensures that the private key is difficult to crack, hackers can use phishing links to steal the digital collection in your account.

On April 1st this year, Jay Chou posted on overseas social platforms that he was told by phone that the BAYC#3738 NFT he had previously received had been stolen by a phishing website, and that the avatar was displayed on a foreign NFT trading platform in about an hour. , were traded for 130 ether and 155 ether, respectively.

The digital collection "Smash Bros." is about to change in the 100 billion market?

This kind of thing is not rare. There are many celebrities, politicians and artists among the stolen people, and digital collections are expensive at this stage, not to mention famous people. risks of.

Another aspect is the copyright issue. Some time ago, on some digital collection platforms, Qi Baishi’s “Shrimp Interesting Picture” for 138 yuan and Xu Beihong’s digital ink horse for 128 yuan appeared.

As a result, in May, Xu Beihong Art Museum issued a document saying that some digital platforms used Mr. Xu Beihong’s name as a gimmick to sell related digital collections. Some of the original works of these digital collections were counterfeit works, and some could not provide complete traceability evidence.

In addition, as the so-called “count for one day, ten years in the world”, many speculators are also eyeing this market.

Some people want to “buy low and sell high”, so they buy frantically and drive up the price; some people even focus on the upstream platform construction. It is said that as long as 30,000 yuan can build a digital collection platform of H5 webpage, it can be delivered in about 3 days. As long as the money is enough, the collections for sale, consignment market, announcement area and other sections are readily available. The entry threshold is extremely low, which is why there are not a few digital collection platforms that have shut down and run away.

In response to the current chaos in the digital collection market, the HASHII encrypted digital prints launched by Cool World claims to be able to solve copyright protection and asset security in the digital collection market by using two core invention patent technologies of copyright financial-grade encryption hardware wallet and hash value display. question. However, it has not been widely used in the market, and there are not enough cases and data to support its success rate, and it may take time to test it.

On the other hand, in April this year, the China Internet Finance Association, China Banking Association, and China Securities Association jointly issued the “Proposal on Preventing Financial Risks Related to NFTs”. Control, adhere to the real-name system, strengthen intellectual property protection capacity building and other 14 items.

At the end of June, under the leadership of the China Cultural Industry Association, Ant, Tencent, Baidu, JD.com and other leading domestic digital collection platforms jointly launched self-discipline initiatives such as opposing hype and improving access standards.

“Advocacy” and “self-discipline” are obviously not enough to lead an industry to develop in a healthy and orderly manner . For example, the China Internet Finance Association and other three associations issued an initiative to prevent NFT-related financial risks, and proposed not to provide centralized transactions for NFT transactions. But “you have Zhang Liangji, I have a wall ladder”, the “issuer” of digital collections has launched “transfer”, and there is no shortage of offline high-priced transactions, and the phenomenon of online re-runs has appeared.

Therefore, in order to build a self-disciplined and compliant ecological community, a certain piece of hardware or “self-discipline and initiative” is not enough. What the market needs is for relevant departments to establish corresponding laws and regulations to effectively supervise the industry.

Epilogue

On July 12, the “14th Five-Year Plan for the Development of Shanghai’s Digital Economy” issued by the General Office of the Shanghai Municipal People’s Government pointed out that it supports leading enterprises to explore the construction of NFT trading platforms, research and promote the digitization of NFT and other assets, the global circulation of digital IP, Digital rights protection and other related formats are first tested in Shanghai.

From the attitude of the government, it can be seen that in the post-epidemic era, people’s travel is more and more difficult, and the innovative consumption model behind digital collections has a driving effect on the real economy such as cultural tourism, clothing, and catering.

Materialist dialectics believes that the growth of new things will not be straight-up and smooth, on the contrary, its growth and expansion generally have to go through a difficult and tortuous process. The same goes for digital collections.

However, more and more digital collection companies are now receiving regulatory interviews, and those that are unqualified have been rectified and shut down, such as small digital collection platforms such as Moyuan Shuzang and Yingjing. With stricter regulation and better understanding of the industry by consumers, it is foreseeable that speculation in the market will continue to decrease in the future, and the value of digital collections in empowering the cultural and creative industry and enriching the digital economy model will gradually emerge.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-digital-collection-smash-bros-is-about-to-change-in-the-100-billion-market/
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