The digital collection track that all parties compete for hides transaction chaos

“Xiaodu announces its entry into the digital collection NFT track”

“Mango TV is about to launch a digital collection platform”

“Tianxiaxiu reached a strategic cooperation with Sina Weibo to build Weibo’s only digital collection distribution platform”

……

Recently, we can always see such news, and it feels that all major industries are moving closer to digital collections. What can it bring people?

Although we know that NFT originated abroad, it is almost “crazy” in foreign countries. After all, a mosaic work can be sold for nearly 70 million US dollars, which is very incredible in the eyes of ordinary people. But I don’t know when, the number of domestic entrants seems to be increasing.

The lively digital collection business has now become a new track for all parties to compete for.

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What is the charm of digital collections?

Digital collections are a product of the fusion of blockchain technology and artwork, with unique and immutable credentials. Right now, it’s one of the hottest applications outside of blockchain and the Metaverse. Digital collections enable digital distribution, purchase, collection and use. Compared with the overseas NFT digital collection trading market, the domestic digital collection trading market has a relatively “people-friendly” price, which has attracted the attention of many young people, most of whom are under the age of 35.

There are four main reasons why they have such a feverish interest in digital collections.

(1) Collection value

Buying digital collections is generally out of personal liking or hobby. After all, it is hard to buy “I like it”, so a thousand people have a thousand Hamlets in their hearts. Because of the uniqueness of digital collections, its collection value is very large.

(2) Investment value

They regard investing in digital collections as a means of financial management. These people have also had the experience of speculating shoes and fashion games in the past, which makes them more believe in the investment value of digital collections.

(3) Ownership value

Because digital collection is a brand new asset class, it is irreplaceable in nature, and from the underlying blockchain technology, it cannot be copied, and its provenance and transaction records can be tracked, so when the owner has Owning this digital collection means that the holder has the ownership value of its “authentic”.

(4) Added value

Some of the added value of a digital collection, such as its “digital status symbol”. With the development of the digital society, digital identity symbols have also been applied in more scenarios, as if we have a ticket to enter the upper class in real life, such as a social club in Maxwell Tribeca abroad, If you require a certain NFT, you can enjoy different levels of membership price discounts, etc. Some social circles will also change due to the emergence of digital collections.

Under the tuyere, digital collection transactions are chaotic

Driven by interests, the trading market for digital collections has intensified, and the situation of looting is obvious. Many digital collections on many platforms are even hard to find, and they can be sold out within seconds. This situation will lead to the birth of the second-hand trading market. But at present, For digital collections, there is no open and legal secondary market in my country, and various situations will lead to some irregularities.

1. Resell multiple times to earn the difference

Some users agree to sell digital collections before they meet the transfer requirements. After obtaining the price, they will transfer the products after the waiting period has passed and meet the transfer restrictions. This transfer function seems to have become a suitable way to avoid offline transactions. Because there is no clear regulation in the current law, whether digital collections can be resold. The result of multiple resale is that the price of digital collections rises, and sellers earn the difference in the air. According to some transaction information, most of the collections can have a net profit of tens of yuan to hundreds of yuan, and a few can be sold at a price of 500 to 1,000 yuan, but some low-priced digital collections are basically unwilling to take over.

2. The collection is not creative, plagiarism and cutting leeks

Due to the popularity of NFT in foreign countries, China has also followed suit. It can be seen that some of the collections released by the platform have no collection value and no creativity. They just want to harvest leeks, and there are even trading platforms that blatantly plagiarize for profit. “Domestic NFTs bought “fake” works, have you been cut leeks by NFTs? ” This article pointed out that an account of a domestic NFT trading platform was exposed to copy the works of a foreign NFT trading platform account for sale. It is about a team from abroad working with artist Maya Delia to create a series of NFT pony. It may be due to information asymmetry. Most of the domestic media did not report on this artist, so someone “openly” used CryptoHans’ account to make “official certification” on a social platform and a Chinese NFT trading platform. And released some works, which are consistent with the works on foreign NFT trading platforms, from color, image, details, name, creation time, including artist, almost all information is consistent. Some netizens went to verify this, and the official answer was that this NFT is only sold on OpenSea.

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Left: domestic pirated, right: foreign genuine

Figure: Public account “The Art of Plagiarism”

3. Negligence of platform management, it is difficult to protect the rights and interests of consumers

The popularity of the digital collection market has attracted investors and consumers to enter the market. However, in the context of imperfect regulatory mechanisms, some digital collection platforms have many problems. Recently, the only art that claims to be “China’s first digital art e-commerce company” has attracted much attention because a large number of consumers are defending their rights on social platforms and demanding refunds. On the black cat complaint platform alone, there have been more than 300 complaints in the past two days. According to the rules of the platform, once sold, it does not support return or exchange for no reason within seven days. In response to this question, the only official gave a reply, saying that the unique art has repeatedly encountered a large number of illegal software and malicious access attacks, resulting in errors in some orders and the inability to open the website page. Now it has fully accelerated the processing of various problems that users do due to platform network freezes. In the absence of direct communication with customer service, it is difficult for consumers to protect their rights. At noon on March 7, after the official solution of the only art was announced, many consumers were still defending their rights on multiple social platforms.

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During the two sessions, Xu Niansha, a member of the National Committee of the Chinese People’s Political Consultative Conference, also mentioned the above-mentioned similar problems. He said that my country’s digital collection industry is currently in the stage of rapid development, but there are still some problems. He gave three suggestions. First, it is recommended to strengthen the copyright protection of digital collections; second, to effectively supervise the issuance of digital collections; third, to establish an access system for digital collections trading platforms.

In the future, if digital collections are to be sustainable for a long time, relevant institutions must regulate the industry, and at the same time strengthen the crackdown on various illegal and criminal acts involving digital collections, and purify the market development atmosphere. Secondly, if brands want to use digital collections to achieve marketing content out of the circle, they also need to consider many aspects. For example, in-depth exploration of technology, ecology, design, and user precipitation to realize brand value can help brands seize the future consumer market and win a place.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-digital-collection-track-that-all-parties-compete-for-hides-transaction-chaos/
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