Top Position Research Report: Rarible (RARI)

Rarible is a comprehensive NFT trading platform on Ether. This article details the Rarible product, the token RARI economic model, and more, as well as a general overview of the NFT track.

Technical Framework Diagram for Ocean Protocol v2
Rarible is a comprehensive NFT trading platform built on Ether. Relying on an innovative market liquidity mining approach in the early stage, it has quickly grabbed a significant portion of the market share and the overall ecological scale is currently developing well. The overall architecture of the product is reasonable and easy to use, but there is still some room for improvement. If the product continues to maintain its innovative ability and operate successfully, it has a chance to become a competitor of OpenSea in the future. Therefore, it is worth watching.

Investment Summary

Rarible is a comprehensive NFT trading platform on Ether. The core mission is to become the interface end for users to enter the NFT world, help users buy and sell NFT conveniently, and protect the ownership of users’ digital assets.

From the current development of the NFT track and the vision of the Rarible team, the Rarible platform has practical needs and usage scenarios for users.

Rarible is financially sound and has sufficient funds for the team’s long-term development. The code base is not open source. In terms of product, the overall architecture is reasonable, the threshold for creating NFTs on the platform is low, the ease of use is good, and the creators can get a certain percentage of royalties from each NFT sale, which can motivate more creators to create NFTs on its platform. However, in terms of NFT anti-counterfeiting measures, it mainly relies on manual review at present, which is relatively inefficient and still has more room for improvement.

Rarible has a shorter development cycle, but due to its improved market liquidity mining mechanism based on liquidity mining (i.e. users can get native token RARI rewards by buying and selling NFT assets on the Rarible platform), it attracted a number of users in the early stage of the project, and the business growth rate is very obvious, and now it has become the head project in the NFT track. However, market liquidity mining brings traffic, but also brings the project the problem of cleaning transactions (similar to brush volume). The follow-up team may introduce the Staking model of RARI token to reduce the revenue of cleaning traders by reducing the current share of market liquidity mining, and further motivate the participants in the community.

As for the economic model, RARI currently has 15.58% liquidity, which is a small amount of liquidity and a fragmented address of coin holdings. Excluding the release of tokens from investors and the team (the team has not disclosed the exact timing of the release in this area, and there is a large uncertainty factor), RARI tokens are expected to be circulating at approximately 28.80% by the end of 2021.

In terms of competition, Rarible is currently at the head of the NFT track, but compared to OpenSea, the leader of the track, the overall gap is still relatively large, both in terms of ecological scale and product design. But on the other hand, Rarible is currently a relatively advanced project in the field of NFT + DeFi, such as: Rarible and Yearn’s previous yInsure integration to trade policies in the form of NFT; support for Uniswap v3 LP Token NFT transactions; Hegic options on NFT for users to trade The attempts in such areas as these have brought new imagination to the circle. In the future, if Rarible maintains the ability to continue to innovate, there is no doubt that there is a possibility of breaking new ground.

In summary, Rarible is worth watching.

*Note: The final rating of [Concern]/[No Concern] is the result of a comprehensive analysis of the current fundamentals of the project in accordance with the First Class Project Evaluation Framework, and not a prediction of the future price increase or decrease of the project token. There are many factors that affect token prices, and project fundamentals are not the only factor. Therefore, you should not assume that the project price will definitely fall just because the research report determines that it is [not concerned]. In addition, the development of blockchain projects is dynamic. If there is a significant positive change in the fundamentals of a project that we judge as [Not Concerned], we will likely adjust it to [Concerned].

Basic Overview

  1. Project Introduction

Rarible is an NFT issuance and trading platform where users can create and sell digital collections protected by the blockchain and receive RARI rewards, Rarible’s governance token, by trading NFT. Rarible is currently gaining ground and quickly gaining a foothold in the NFT circuit with its unique approach to market liquidity mining.

  1. Basic information (data as of May 30, 2021)

Project details

  1. Team

As disclosed by Collage, the Rarible team currently consists of 34 people, based in Moscow, and the team is mainly co-founded by 3 serial entrepreneurs of Russian origin, as follows.

Alexander Salnikov, co-founder and head of product at Rarible, has more than 7 years of experience and technical background as a product manager, has been involved in founding crypto startups several times and managing technical and marketing teams. He has been working in the crypto space since 2012.

Alexei Falin, Co-founder and CEO of Rarible, graduated from USC. 2016-2020 Founder of Sticker.Place (a visual media company). Founded on creating a decentralized NFT trading marketplace, launched Twitter in January 2020 and currently has a following of 1,177.

Ilya Komolkin, co-founder of Rarible, co-founder and product designer of Common (an urban experience sharing platform) from 2013-2014, and product designer at Yandex from 2014 to present.

  1. Funding

As disclosed by the Rarible team, crypto-investor CoinFund invested in Rarible on September 9, 2020 for an undisclosed amount.

On February 4, 2021, Rarible announced the closing of a $1.75 million seed round led by 1kx with participation from ParaFi Capital, Coinbase Ventures, existing investors CoinFund, MetaCartel Ventures, and Bollinger Investment Group.

In addition, the platform charges a 2.5% service fee when trading NFT at Rarible. According to Dune Analytics, as of May 17, 2021, Rarible earned a total of $7,100,628 in revenue through fees.

So, from what we know, Rarible is financially sound and will have enough funds for the team’s long-term growth.

  1. Code

The Rarible code base is not open source.

  1. product

Overview

Rarible is an NFT issuance and trading platform to create and trade digital collections protected by the blockchain. Before introducing Rarible we need to understand what is NFT.

The full name of NFT is Non-fungible-token, which means non-homogenized token, corresponding to homogenized tokens.

Difference between homogenized and non-fungible-token.

Homogenized tokens are substitutable assets, the most typical example is cryptocurrency, for example, I have a BTC, exchange it with one of your BTC, or put this one BTC in my wallet, it does not affect its value, what I have is still a BTC. just like the 100 in my hand and the 100 in your hand can be interchanged, 100 is always 100, able to use another 100 bill to in place of the 100, thus enabling interchangeability between currencies.

Non-homogenized tokens, on the other hand, are uniquely identified, non-fungible tokens that are not detachable. Examples include collections, game items, digital art, event tickets, domain names, and even ownership records of physical assets that vary in terms of tradability, liquidity, and interoperability.

After a brief introduction to NFT, what is the value of NFT to us?

The Internet is a world where information can flow freely. From the beginning of text to pictures to the current streaming video, the Internet has greatly disrupted the way people live. Since the birth of the Internet, we have had irreplaceable digital assets: domain names, event tickets, in-game items, and even social network accounts like Twitter, Facebook and Weibo, to name a few. And as the Internet continues to grow, we currently have a plethora of digital assets that we never actually own.

Our bank accounts, online game accounts, social accounts like Twitter and Facebook, event tickets, etc. are all controlled by centralized companies, and you have no way to take legal action when Facebook wants to take your assets (accounts). In the real world, we have legal utility and physical ownership of our ownership, but on today’s Internet there is no digital ownership, or not exactly digital ownership.

Blockchain grants ownership and management rights to digital assets to users. At the same time blockchain adds unique properties to some non-homogeneous assets, thus changing the relationship between users and developers and these assets. And NFT standardizes traditional digital assets on this basis (e.g., ERC-721, ERC-1155) and presents them to users in a rich form in Dapps, giving digital assets a circulation capability that they did not have before.

And with the current rapid development of NFT and the growing scale of the ecology, in addition to NFT itself, such platforms that host NFT projects (e.g. Opensea, Rarible) also have more opportunities to capture the value of the entire ecological development.

Rarible Product Introduction

Rarible is an NFT issuance and trading platform to create and sell crypto collections protected by the blockchain. It is an open source, non-hosted platform managed by the community for users to cast, trade and create collections. Users can freely access Rarible without coding skills to create and display their own artwork, or purchase artwork for their collections with ERC-20 tokens. rari focuses primarily on user-generated artwork, using NFT to provide proof of provenance and guarantee the intellectual property rights of users’ new artwork.

NFT creators in the Rarible marketplace are free to set the royalty amount at 10%-30% (the official recommended range). The issue of royalties, for example: you as an NFT creator, hang a single to sell one of their original works, marked up to 1 ETH, the person who bought your work and sold it for 11 ETH, the difference is 10 ETH, and then 10% of the difference in profit back to you, that is, 10 * 10%, you get another 1 ETH, this part of the platform charges a 2.5% service fee.

NFT creation process

The process of creating NFT on Rarible is as follows.

1) Login to rarible.com, bind your wallet and click Create in the upper left corner.

2) Select Single or Multiple as needed (Single uses the ERC-721 standard and can only cast a single NFT; Multiple uses the ERC-1155 standard and can cast multiple identical NFTs at the same time).

Top Position Research Report: Rarible (RARI)

Figure 2-1 Rarible NFT creation process

3) choose to upload the image or artwork you want to cast the NFT (supported formats include PNG, GIF, WEBP, MP4 and MP3, with a file limit of 30 MB), which is off-chain and eventually stored on the IPFS network.

4) during the NFT creation process, you can set whether you want to create a stand-alone NFT contract or an artwork based on a Rarible NFT contract deployment.

Top Position Research Report: Rarible (RARI)

Figure 2-2 Rarible NFT contract deployment options

5) As needed, introduce the NFT, select the royalty percentage of the asset, select what can be unlocked (e.g., those who purchase the NFT will also receive a corresponding physical T-Shirt), etc..

6) After perfecting the information, pay a certain handling fee and cast NFT.

*Remarks: As of May 28, 2021, ETH quotes $ 2,715, Gasprice average GWEI is 28, it takes an average of $ 25.77 to create an NFT of ERC-721 on Rarible; it takes an average of $ 19.32 to create an NFT of ERC-1155.

In summary, overall the threshold for creating an NFT on Rarible is low and the ease of use is good. Rarible’s move will provide an incentive for more creators to create NFTs on its platform.

Platform Certification

Top Position Research Report: Rarible (RARI)

Figure 2-3 Rarible’s top 15 NFT sellers in the past 30 days

Top Position Research Report: Rarible (RARI)

Figure 2-4 Rarible’s top 15 NFT buyers ranked in the past 30 days

Normally, users can use the features of the Rarible platform by simply tying their Ether wallet, but to gain more visibility and have their created NFTs appear in search listings as well as on the leaderboard (as shown in Figure 2-3 and Figure 2-4 above), they must be verified by Rarible.

Why do you need validation?

As with traditional large open marketplaces, there are always concerns about the authenticity of goods. To address this, Rarible manually reviews every user who submits a verification request to ensure that only genuine creators can successfully sell.

The process for collectors and creators to submit for review.

1) Submit a personal cover image, upload a personal avatar, and bind an ethereum wallet address.
2) Edit personal profile (not required, but will increase the user’s chances of passing verification).
3) Associating one’s Twitter account (not required, but will increase the user’s chances of passing verification).
4) Collectors need to hold NFTs created by other users (holding NFTs generated by verified creators carries more weight); creators need to cast at least one NFT on Rarible.

Rarible review process.

1) When a user submits a validation request, the request is added to the queue in chronological order.
2) When the auditor starts checking the user’s profile, an automated script is run to see if the user has set a cover image and personal avatar, and if the wallet address provided is a valid ethereum address. If there are no results, the user’s request will be automatically rejected.
3) If the user meets the above requirements, the auditor will check the user’s social media accounts. According to the team’s description, it will not pay attention to the number of followers of the applicant, but mainly to see if the user is actively promoting the work he/she plans to publish on the Rarible marketplace
4) For creators, the auditor will also check for a demonstration of their specific creative process to ensure that the user is original and not plagiarizing someone else’s work.
5) Ultimately, the auditor will perform a reverse image search on the user’s NFTs that have been published on the Rarible marketplace. If the user’s NFT is authentic and does not raise any red flags in the system, then it will be approved. Approved accounts will have a “check mark” in the lower right corner of their avatar, as shown in Figure 2-3 and Figure 2-4 above.

Overall, Rarible’s account verification provides a degree of protection for creators, but it does not mean that accounts verified by Rarible are 100% trustworthy. In some specific details can be improved, such as: if the user will take the current network of artwork to modify, whether the system can still identify; has verified the user how to prevent evil; manual audit inefficiency and so on.

In summary: Rarible is in a good financial position and has sufficient funds for the long-term development of the team. The code base is not open source. In terms of product, the overall architecture is reasonable, the threshold for creating NFT on the platform is low, the ease of use is good, and in the process of each sale of NFT, the creator can get a certain percentage of royalties, which can motivate more creators to create NFT works on its platform. However, in terms of anti-counterfeiting measures, it mainly relies on manual auditing at present, which is relatively inefficient, and there is still more room for improvement in the follow-up.

Development

  1. History
  2. Current status

According to Dune Analytics data [9], as of May 17, 2021, the total transaction amount of Rarible platform reached $138,927,362, from which the project owner earned $7,100,628 in fees.

Top Position Research Report: Rarible (RARI)

Figure 3-1 Number of users using the Rarible protocol per month

From the above chart we can clearly see that the growth rate of users interacting with the Rarible protocol has accelerated significantly in recent months, according to the Ether Block Viewer, RARI has 19,819 coin-holding addresses as of May 18, 2021, and according to Dune Analytics data, the total number of users who have used the Rarible protocol has accumulated 152,779 According to Dune Analytics, the total number of users who have used the Rarible protocol is 152,779. That’s 12.97% of the total number of addresses that have been interacted with.

There are 2 main possible reasons for the large gap in this ratio.

1) a significant portion of the RARI token rewards received by new users after buying and selling NFT on Rarible (see Market Liquidity Mining below for details) have not yet gone to claim.
2) As the RARI coin price continues to go higher from early 2021 to March, some users will repeatedly make multiple purchases and sales in order to get more RARI token rewards, brushing up their transaction amount, and there is the phenomenon of Wash Trading (Wash Trading).

The team did not disclose detailed data about the number of addresses that were not claimed by users and the number of addresses with the phenomenon of wash trading.

However, it should be noted that Rarible co-founder Alexander Salnikov previously admitted that about 40% of Rarible’s NFT transactions in August 2020 totaling $750,000 involved some kind of wash trading

*Note: Wash trading can be simply understood as users repeatedly trading their NFTs by opening two or more accounts in order to obtain RARI token rewards, similar to the practice of pouring the left hand over the right, i.e. swiping volume.

At present, due to the lack of data, it is difficult to determine the real transaction data on the Rarible platform, about this aspect, the first class warehouse has asked the project side by email, but has not yet obtained a reply, the subsequent first class warehouse will continue to follow up on this aspect of the news, and timely push.

At present, what we can learn from the information available is that, due to the existence of Rarible transaction mining, there will inevitably be a part of the “wool-gathering” group. Most of the laundering transactions are different from normal NFT traders, which tend to have multiple NFT order transactions within a certain time period (e.g. within 24 hours). However, if a person has multiple accounts at the same time, it is not easy for the program side to monitor. For the project side to do should be to develop some corresponding measures, countermeasures, to prevent the existence of such “single swipe”. Make the platform transaction data more realistic and token distribution more fair.

Possible future countermeasures.

Rarible released “[RR-2][Draft] Rarible DAO Structure: Community Treasury, Staking for Voting power” in the community on February 11, 2021 ” draft [12].

The main approach is to reward community governance by introducing RARI Staking, as well as changing the original distribution plan of RARI.

What is planned in the draft is.

1) to reconfigure 25% of the market liquidity mining (i.e., 15% of the total RARI supply) to be allocated to the smart treasury managed by RARI to reward developers, creators, and those who have contributed to the community.
2) 25% of the market liquidity mining (i.e. 15% of the total RARI supply) is reallocated to the governance fund to reward community participants.

In total, this means that 60% of the tokens originally used for market liquidity mining are abated to 30%, with the remainder remaining unchanged. By mining less market liquidity, the revenue available for cleansing transactions can be reduced and the tokens can be rewarded to those who actually contribute to the community. But it still doesn’t essentially solve the problem of laundering transactions.

The initial vote on the draft has now passed, and the subsequent head bin will continue to monitor the project’s subsequent plans.

  1. Future

The Rarible team started late and has not yet disclosed the corresponding white paper and roadmap, but from the project community’s community forum in the past month and the recent voting proposal on Snapshot, we can roughly understand the team’s next to-do items mainly include.
1) Development of a JS SDK for the Rarible protocol in order to enable rapid integration of Rarible into other dapps.
2) financial management of the funds of the DAO treasury.
3) integration and cooperation with more projects to further develop the ecology.
4) further improve the functionality of the product and enhance the ease of use and diversity of the product.
5) Create a mobile NFT platform.

Summary: Rarible has developed a relatively short time cycle so far, but the overall scale growth is very intuitive. From the business data, Rarible belongs to the forefront level of the NFT industry, but there is currently a problem of cleaning transactions on the platform. On the one hand, for the project side, the project tokens are jacked by speculators for nothing, although there are measures in place to prevent this phenomenon, but it is still difficult to eliminate the occurrence of this phenomenon; on the other hand, the process of cleaning transaction fees are really there, disguised also for the project side to bring more fee share income.

In addition, it should be noted that the Rarible team has not yet disclosed the corresponding white paper and roadmap.

Economic Model
Rarible’s native token is RARI, with a fixed total of 25 million tokens. As of May 20, 2021, there are 3,894,310 tokens in circulation[14], which is 15.58%.

  1. Supply RARI token allocation.
Top Position Research Report: Rarible (RARI)

Figure 4-1 RARI token distribution details

Combined with Figure 4-1 above and the information disclosed by the team, the distribution details of RARI tokens are as follows.

1) Investors and team: 30%, 7.5 million RARI, the exact release time is not disclosed yet.

2) Airdrop: 10%, 2.5 million RARI.
Round 1 2020.07.15: 2%, 500,000 RARI.
Second round 2020.07.20: 4%, 1 million RARI.
Remaining: 4%, unannounced.

3) Market liquidity mining: 60%, 15 million RARI.
Market liquidity mining starts on July 15, 2020, and 75,000 RARI will be distributed proportionally each Sunday to users who make buy and sell transactions on Rarible during the week, with both buyers and sellers receiving 50% of the allocated amount (as shown in Figure 4-2 below), with distribution starting on July 19, 2020, for a total of 200 weeks (approximately 4 years). The RARI tokens are expected to release 5.7 million by the end of 2021 for the liquidity mining portion.

Excluding token releases from investors and teams, RARI tokens are expected to be approximately 28.80% in circulation by the end of 2021.

Top Position Research Report: Rarible (RARI)

Figure 4-2 RARI token distribution details

Analysis of coin holding addresses

According to the Ethernet address, as of May 20, 2021 RARI holds 19,852 addresses, and the top 100 holdings account for 91.76%.

Among them, 30% of the team and investors are currently unreleased, and there are still 53.36% of tokens in the market liquidity mining part, deducting these two parts of the share, the total share of the top 100 addresses is 8.4%. Therefore, overall, RARI currently has a small circulation and holds a relatively scattered address.

  1. Token Role

RARI’s current token roles are mainly as follows.

1) Governance: RARI holders can make collective decisions and vote on various matters such as system updates, transaction fees, new features, and future developments.
2) Governance: vetting creators on the platform.
3) Featured Artwork: RARI token holders can vote on featured artwork in the platform to decide who gets a boost from the platform to create fine creators and works.

In summary: Rarible rose quickly in the NFT circuit early on with its market liquidity mining approach. Currently the tokens in the hands of the team and early investors are not released yet, RARI circulation is 15.58%, the circulation is small, and the address of the coin holding is more scattered. The tokens are mainly used for project governance, and the overall governance situation is relatively good.

Headquarter Note: The subsequent team may introduce the Staking model of RARI tokens and reduce the current share of market liquidity mining, thus further motivating the community participants.

Competition

  1. Industry Overview

Overview

Rarible’s niche track is a comprehensive NFT trading platform on Ether.

NFT is short for Non-Homogenized Token, which refers to Token with uniqueness, non-splittable and minimum unit of 1. There are currently two main token standards for NFT: ERC-721 and ERC-1155. NFT based on these two standards are essentially the same, but NFT based on ERC-1155 standard has advantages in terms of bulk transactions, etc.

In recent years, as the range of NFT use cases has become broader and broader, a more and more complete system has been formed. The current classification of NFT is divided into six main categories: art, collectibles, virtual reality, games, real goods and sports, specifically defined as

1) Art: content generated or traded by markets, projects or individuals in the form of NFT, represented by projects such as Super Rare and Known Origin.
2) Collectible: Projects whose main function is to issue collectible NFTs. These tokens can be used for games or interaction between players, representing projects such as Crypto Punks, Crypto Kitties, etc.
3) Games: NFTs within video games, including card games, role-playing games, etc., represented by projects such as Axie Infinity, Gods Unchain, etc.
4) Virtual reality: projects that provide users with virtual reality experiences, usually accessed through computers, 3D devices or cell phones, represented by projects such as Decentraland, the Sandbox, etc.
5) Sports: usually related to real-world athletes and teams, including motor sports, soccer clubs, basketball teams, etc., represented by projects such as SoRare, F1 Delta Time, ZED Run, etc.
6) Real-world items: can be domains that grant access, ownership of tickets and assets, etc.

*Note: There are other NFT classification criteria currently available in the market.

Rarible, as a comprehensive trading platform, encompasses almost all of the above NFT assets.

NFT development lineage

We briefly reviewed the development process of NFT, we can see that in fact NFT appeared as early as 2014, when with the birth of Colored Coin (small denomination colored bitcoin), people realized the potential of assets on the chain; then in 2017, CryptoPunks released the first NFT experiment on Ether, crypto cats viral The spread of NFT made NFT quickly come out of the circle and become mainstream; and then between 2018 and 2019, the development of the NFT track as a whole also further promoted the construction of the underlying infrastructure, which is when NFT platforms came into being, with platforms like OpenSea and others as early promoters in the industry, aiming to enable ordinary users to easily create and trade NFT. in this period we also witnessed Many card games, traditional IP entry (e.g. NFT launched by stars), virtual world expansion (e.g. Decentraland), ethereal domain names and a series of experimental NFT projects emerged. Development to now NFT has taken a place in the blockchain world.

Current Status

In the first quarter of 2021, NFT transactions exceeded $2 billion, which is about 20 times the volume of transactions in Q1 2020 and 131 times the volume of transactions in Q1 2020. Interestingly, however, the number of buyers, sellers and wallets of NFT has also increased, but by significantly less than the volume.

Top Position Research Report: Rarible (RARI)

Figure 5-1 NFT segmentation transaction situation

From the above Figure 5-1 we can see that currently in the NFT field, mainly in the transaction of art and collectibles, and this is also the current NFT platform is the main trading goods.

  1. Competitive products comparison

With the current rapid development of NFT, the ecological scale is growing, in addition to NFT itself, such platforms that host NFT projects (such as: Opensea, Rarible) also have more opportunities to capture the value of the entire ecological development. Let’s take a look at the current major NFT platforms first.

Introduction of competing projects

Integrated trading platform.

Opensea: established in January 2018, is currently the largest NFT trading platform, including various types of NFT such as artwork, collectibles, game assets, virtual land, domain names, etc. The total transaction volume as of May 1, 2021 has $494 million, and the total number of users has reached 210,000. The NFT casting feature with no Gas fee is currently available.

Rarible: is a comprehensive NFT trading platform that encompasses a wide range of NFT assets. rarible issues weekly RARI token rewards to platform traders, and users can also participate in platform governance.

Mintable: is a trading platform where NFT can be bought, sold and minted through no Gas (created without, and still requires a fee for eventual uplinking). At the same time, the buyer and seller after completing the transaction will get the voting rights NFT, users can use the NFT to participate in the project community governance. However, the more unreasonable part is that the voting rights on Mintable can be directly purchased with ETH. Currently, Mintable has announced that it has received investment from billionaire Mark Cuban, owner of the NBA’s Dallas Mavericks.

At present, in addition to Rarible such comprehensive trading platform, in Figure 5-1 we also see that the current NFT market is still mainly based on the transaction of art and collectibles, so in addition to comprehensive NFT trading platform, we also need to refer to the current development scale of the better NFT art, collectibles NFT trading platform practices.

Art platforms.

Nifty Gateway: co-founded by twin brothers DuncanCock Foster and Griffin Cock Foster.In November 2019, the crypto art trading platform was acquired by the Winklevoss brothers’ digital currency trading platform Gemini. With collaborations with famous crypto artists such as Beeple, FEWOCiOUS, and Mad Dog Jones, it has instantly climbed itself to the top of crypto art platforms in terms of buzz and sales.

MEME: One of the most representative projects that has regained its life through transformation, MEME has gradually completed the transformation from an air project to an art platform from the beginning of being just a spoof project to now collaborating with various artists.

SuperRare: It is currently the strongest comprehensive crypto art platform. Artists need to go through a strict screening process to enter SuperRare, and because the platform was born earlier, almost all of the popular crypto artists have entered SuperRare now.

MakersPlace: It is a veteran crypto art platform, focusing on the introduction of external IPs while supporting new artists within the platform, Jose Delbo, the author of DC comics Wonder Woman, has released NFT crypto artworks on the platform. In addition, MakersPlace also introduces social attributes.

Async Art: Focusing on the programmability of artworks, the artworks on the platform are not just a simple image, they are made up of several changeable layers. async art platform allows users to purchase masters and layers, which are tokenized on ethereum respectively. By purchasing layers, you have the opportunity to influence the work of your favorite artists. When you change something on a layer, whoever owns the master will change it because the layer has been changed.

Zora: is an invite-only crypto-art platform where each new artist has 3 invite-only spots, both to invite their friends and to invite other artists they admire. This enhances the social aspect of the platform on one hand, and improves the vetting mechanism from staff to artists themselves on the other.

Foundation: is an invite-only crypto art platform. Unlike Zora, artists need to successfully sell a piece of artwork on the platform before they will get two invite-only spots. This raises the difficulty of entry on the one hand, and strengthens the vetting mechanism on the other, so that only artists whose works are approved by buyers can invite others.

Collectibles platforms.

NBA Top Shot: It is a collectible NFT game launched by Dapper Labs and officially licensed by the NBA, which is currently the hottest NFT project. Players can collect NBA stars’ highlight reels and trade them in the secondary market. As of May 25, 2021, the total trading volume is about 592 million USD, and the total trading volume in the last 30 days is about 51.16 million USD. The game is still in beta, so there will be maintenance from time to time.

CryptoPunks: is the first NFT project, produced by Larva Labs, with a total of only 10,000 and all airdropped to community users at the beginning of its existence in 2017. The total transaction volume is currently about $100 million, with a total transaction volume of about $80.39 million in the last 30 days. The highest-priced CryptoPunk currently sold for a whopping 4,200 ETH, which was about $7.5 million at the time.

CryptoKitties: Also produced by Dapper Labs, CryptoKitties even brought the ethereum network to a halt at one point when it first launched. Players can buy virtual pet cats and have them breed offspring cats, with each cat’s attributes determined by genetics. Currently, CryptoKitties has a total transaction volume of about $33.32 million, with a total transaction volume of about $170,000 in the last 30 days.

Hashmasks: is a phenomenal NFT app born in early 2021 that has sparked a market boom by combining various mechanisms such as union curves, blind boxes, rare attributes, and domain names into fresh gameplay. Since its birth, Hashmasks secondary market has traded up to $50.03 million, with a total turnover of approximately $1.42 million in the last 30 days.

*Remarks: The above data sources are mainly from Crypto Slam.

From the above list of several more famous NFT art and collectibles platform, we can see that for such trading platform, the current development of more successful reasons are mainly the following.
1) traditional IP flow hype and promotion, quickly attracting a large number of fans (e.g.: NBA Top Shot, Nifty Gateway, etc.); 2) through the establishment of artist access threshold to ensure the quality of NFT on the platform and reduce piracy (e.g.: SuperRare, Zora and Foundation, etc.); 3) there is a certain crypto community base, community culture and good atmosphere (e.g.: CryptoPunks, CryptoKitties and MEME, etc.); 4) there is some innovation on the original basis of NFT and the model is attractive (e.g.: Hashmasks, Async Art).

Comprehensive view, the current art and collectibles NFT trading platform is still more “brand, traffic” to win, often only carry the value of the project itself, less scalable (to know the type of NFT is very diverse). For the comprehensive NFT trading platform, theoretically can carry the value of all the NFT on the market, that is, the NFT track needs to work together to develop its ecology, and for ordinary users, more need is an interface into the world of NFT end.

We are considering a comprehensive NFT trading platform can start from the following dimensions.

For NFT trading users.
(1) whether the platform’s transaction types are diverse and can meet the needs of all users as much as possible.
2) whether the authenticity of the NFT can be guaranteed.
3) whether the buying and selling process, the management of NFT has the ease of use.
4) the commission charged for the transaction.
5) the data storage situation of NFT.

For NFT creators: 1) the activity of the platform, whether it can guarantee a high turnover rate of their works.
2) the revenue of NFT creation and whether the fees charged by the platform are reasonable.
3) the ease of use of the product.
4) the protection of copyright.
5) the data storage situation of NFT.

Therefore, below we will analyze the advantages and disadvantages of the two platforms mainly on the above dimensions.

Ecological scale

Top Position Research Report: Rarible (RARI)

Figure 5-2 Comparison of monthly turnover between OpenSea and Rarible

The main reason is that OpenSea has a certain first-mover advantage, coupled with its early cooperation with many NFT projects and the accumulated network effect, and the overall design of OpenSea is also better than Rarible. Rarible (see the following article for details). In the second half of 2020, in the first few months after Rarible started its market liquidity mining, Rarible’s platform trading volume grew significantly, outperforming OpenSea during the same period, but in this year’s new round of NFT concept explosion, Rarible’s growth trend is clearly inferior to OpenSea.

From the perspective of integrated projects, OpenSea has been deeply involved in the NFT track since 18 years and actively integrated with various well-developed NTF projects, and has developed into the most comprehensive NFT trading platform covering the widest range of categories and the most digital commodities. At present, OpenSea is also actively exploring the expansion options of Ether 2, such as the integration with Immutable X, while Rarible has not taken corresponding measures in this regard for the time being.

In addition, the earlier integration of some projects, retaining a certain base of users, so that the current overall liquidity will be better than similar platforms, for example: Rarible is also currently integrated with Cryptopunk, but its volume and the number of goods are far behind OpenSea.

On the other hand, while Rarible as a whole is not as good as OpenSea, artwork creation activity on Rarible is currently more active, with 279,654 NFTs minted on the Rarible platform as of May 25, 2021, and 27,933 NFTs minted in the last 30 days. e.g. Billionaire and Dallas Maverick owner Mark Cuban has offered his crypto artwork NFT “The RollUp 2021” on Rarible; Rarible has integrated with Yearn’s previous yInsure, Uniswap v3, and Hegic to work on NFT+. DeFi market are good examples.

Charges

Currently, both OpenSea and Rarible charge a relatively low commission of 2.5% compared to other traditional platforms (Sotheby’s and Christie’s charge buyer commissions of about 12-25% for auctioning art collections). And for creators, both platforms offer a creator’s royalty (called: Royalty on OpenSea and Rarible), which means that the creator not only receives revenue on the first sale of the work, but also a percentage of each subsequent transaction of the work. Rarible does not have a cap (the official recommendation is to set it in the 10-30% range). The creator’s royalty is set up to incentivize more creators to create NFT works on its platform, and OpenSea and Rarible are similar in this respect.

*It should be noted that on OpenSea, creators need to accumulate $20 or more in creator royalties before they will receive payment. In addition, OpenSea has an interface to the Rarible platform, but currently, users cannot receive Rarible token rewards when purchasing products from Rarible on OpenSea.

The difference between OpenSea and Rarible fee situation is the different way of charging when minting NFTs. On OpenSea, the minted NFT will only be up-chained when the user successfully sells the item. That is, when users cast NFTs on OpenSea, they are not actually “cast” to the blockchain unless the transaction is successful, so there is no fee for casting NFTs (note that when using OpenSea for the first time, users need to complete several initial transactions (approve), and when The first time you create a collection list, you also need to submit a transaction, because that step is on the chain, and the subsequent operation of casting NFT only requires the submission of a signature, without prior payment of fees).

On Rarible, on the other hand, the NFT is already up-linked when the NFT is minted, so when the user has been unable to sell the NFT created on Rarible, they also need to pay a Gas fee up front for this.

In this respect, OpenSea’s user experience is superior to Rarible’s. Currently for many new NFT players, it is difficult or even impossible for people to search for their creations on the platform when their work is not well exposed. And if you need to pay a fee every time you cast NFT, it is a risk for new players, and OpenSea circumvents that situation.

NFT Authenticity

OpenSea and Rarible have a similar approach to NFT authenticity verification, both are manually verified by the team, and some public figures, big V or accounts with risk of fraud are certified. The account has been certified by the platform and its NFT has certain guarantee. Details of authentication can be found in section 2.4.2.2 of the appeal.

However, the mainly manual form of authentication will inevitably cause inefficiency, and there is some difficulty in monitoring the accounts after successful authentication.

The SuperRare, Zora and Foundation projects, like the one mentioned in our appeal, have set up a certain threshold of access mechanism at the beginning, which guarantees the overall quality of their platforms and is better than OpenSea and Rarible in terms of anti-counterfeiting. However, due to its positioning, this kind of platform takes a relatively high-end route and is not popular.

For the audit of NFT authenticity, different projects currently have their own advantages and disadvantages. We have not yet seen a more complete approach, and at present we can only choose to believe that the platform certified by the big V will not do evil.

NFT storage

NFT on OpenSea and Rarible are mainly stored on IPFS.

At present, because it is difficult to realize the assets completely on the chain for the Ethernet network (mainly because of the high cost of Gas and the difficulty of the corresponding technical implementation), so what we see now is generally the use of offline storage with hash value of the document (such as: centralized server or IPFS) to cast NFT pass. And IPFS as a decentralized storage protocol, itself has can store a large volume, a variety of situations of data content, and to protect the data can not be tampered with.

  • Head and other warehouse note: If NFT assets are stored in a centralized server or some insecure off-chain nodes, there is still the possibility of tampering or deletion.
  1. Industry prospects

NFT is a relatively abstract concept, now NFT are released in the virtual world, when we start from the perspective of the physical world, NFT is not as easy to perceive as our traditional sense of artwork. Perhaps when the future of virtual and real boundaries are no longer as blurred as they are now, people can easily travel between the two, NFT may bring us no less than the impact of traditional artwork.

NFT’s future, in fact, depends more on the scale of its overall ecological development. Traditional games are a different ecology, a huge number of users give value to the platform, and promote the circulation of virtual assets within the game (such as: game equipment), people willingly pay for this, and for the scarcity of “equipment” tend to rush.

Back to the present, the main thing about NFT is that it helps us establish ownership of digital assets. And art and collectibles naturally fit the concept of NFT, so in the early days of the track is also the first to develop. The current market for collectibles and artwork represents a business model, and a more mature business model in the traditional market. The underlying/application layer protocols represented by OpenSea and Rarible are able to greatly carry the current value of NFT as well as promote the market before the market for NFT is fully popularized.

OpenSea has become the leading NTF by integrating with some quality projects and setting up interfaces, and now it has become the leading NTF. Rarible has also captured a certain market share through market liquidity mining, but it still needs to maintain its innovative power, otherwise it will be easily surpassed.

Summary: Rarible’s segmentation track is a comprehensive NFT trading platform on ethereum. Overall, Rarible is not as good as OpenSea, both in terms of ecological scale and product design (e.g., fees for casting NFTs).

In the early stage of industry development, interest-oriented is a common feature of users, and Rarible also grabbed a certain market share by virtue of early market liquidity mining. However, as the industry continues to improve, speculators who pursue profit will eventually become a minority, and ease of operation and low cost are the core competencies of such projects.

But because Rarible is the only project currently issuing coins on the comprehensive NFT trading platform, it has improved and innovated on the traditional liquidity mining play in token distribution. And it is also the project that is currently ahead of the curve in the NFT+DeFi space, such as: Rarible’s integration with Yearn’s previous yInsure, Uniswap v3 LP Token, Hegic options and so on, all bringing new imagination to the circle. In the future, if Rarible maintains the ability to continue to innovate, there is no doubt that there is a possibility of breaking new ground.

Risks

Competition in the same kind of track
The above competitor section, we can see that overall, Rarible is currently not enough to compete with OpenSea, if in the short term, in the case that Rarible has not made a large improvement, OpenSea issued a coin, it will inevitably have a considerable impact on Rarible, and lose a certain number of users.

NFT valuation bubble

Previously, due to the hot NFT market, many NFTs were sold at high or even sky-high prices, and with such high prices, there must be a bubble. We have to know like NBA TopShot, CryptoPunk such NFT due to a large fan base and have a certain collection of meaning, so there are so many people tend to rush. But with the development of the industry, it is inevitable that a large number of imitation plates will appear subsequently, and investment in such projects needs to be cautious. Do your own research, don’t rush in, and understand the logic behind the hype to avoid losses.

Low transparency

Currently in terms of Rarible’s economic model, the team and early investors hold 30% of the tokens, but the team has not made specific instructions on the rules for releasing tokens for this part, and there is a large uncertainty behind it.

In addition, the Rarible team has not disclosed the corresponding white paper and roadmap for now.

Investment Analysis

Investment has risks, the price data provided below is based on the article author’s own knowledge and understanding of the project to make investment decisions, only as a demo reference, not as the basis for user investment decisions, users should make investment decisions based on their own understanding and knowledge of the project, the first class warehouse and the article author is not responsible for the profit and loss of the user’s own investment decisions.

The main pair of RARI on centralized exchange is Gate’s USDT pair, so Gate’s RARI/USDT is used as the analysis object.

RARI’s recent price high was $46.55 on Mar 29, 2021; low was $6.51 on May 23, 2021. RARI’s current price is $8.92, market cap outstanding is about $35.729 million, total tokens are 25 million, circulation is about 4.023 million. CoinGecko is ranked 500.

Investors should first determine the total amount they have invested in the project, and then manage their capital in separate positions. We recommend to operate according to 073 split positions, 0% long term, 70% medium term and 30% short term, investors can also adjust the ratio according to their own investment style.

No matter what kind of extreme market, do not easily shuttle, keep part of it in the car, part of it under the car, will help you have to maintain a good investment mentality.

We need to emphasize again, the above content only as a user investment reference, not as a basis for user decision-making, please make investment decisions based on their own understanding and knowledge of the project, the first-class warehouse and the author of the article is not responsible for the profit and loss generated by the user’s own investment decisions.

Reference information.

Rarible related information.
Official website, https://rarible.com/
Rarible related documents query, https://rariblecom.zendesk.com/hc/en-us
Dune Analytics data analysis, https://duneanalytics.com/alexfal/rarible
RARI token distribution introduction, https://rarible.medium.com/introducing-rari-the-first-governance-token-in-the-nft-space-5dbcc55b6c43
RARI token analysis, https://www.coingecko.com/en/coins/rarible
Coin holding address analysis, https://etherscan.io/token/tokenholderchart/0xD291E7a03283640FDc51b121aC401383A46cC623
Team Collage, https://www.linkedin.com/company/rarible/
Rarible Data Storage, https://rariblecom.zendesk.com/hc/en-us/articles/360059913792-Token-Data-on-Rarible
Rarible minting fee query, https://raribleanalytics.com/

Introducing $RARI – the first governance token in the NFT space,” Rarible, https://rarible.medium.com/introducing-rari-the-first-governance-token-in-the-nft-space- 5dbcc55b6c43

Validation of Rarible, Decryption, Rarible, https://rarible.medium.com/verification-on-rarible-demystified-4d2ce51e92ae

OpenSea vs. Rarible Data Comparison, https://duneanalytics.com/rchen8/opensea

Rarible gets funding from CoinFund to build community-governed NFT market,” Rarible, https://rarible.medium.com/rarible-secures-funding-from-coinfund-to-build-community- governed-nft-marketplace-5695b1a90dc3

Rarible Raises $1.75 Million from 1kx, CoinFund, ParaFi and Coinbase to Build Next Generation NFT Marketplace” (fundraising status), Rarible, https://rarible.medium.com/rarible-raises-1-75- e27d88573a75

Wash Trading Invades NFT Industry,” (Wash Trading Presentation), https://www.redfoxlabs.io/wash-trading-invades-the-nft-industry

The fast-growing NFT market is problematic but promising,” Leigh Cuen, https://www.coindesk.com/crypto-nft-trading-rari-yield-farming

[RR-2][Draft] Rarible DAO Structures. Community Finance, Collateralization of Voting Rights (RARI Collateralization Mechanism Introduced Draft), https://gov.rarible.com/t/rr-2-draft-rarible-dao-structure-community-treasury-staking-for-voting-power/ 981

Phase 1 of RR2 #QmSkEph (RARI Staking Draft Voting Results), https://snapshot.org/#/rarible/proposal/QmSkEphhRM8ihQMcs2vDjzeSW2JoJHZTftzDxyDMx1eh5d

The History of Non-Friable Tokens (NFTs), Andrew Steinwold, https://medium.com/@Andrew.Steinwold/the-history-of-non-fungible-tokens-nfts-f362ca57ae10

The Unfungible Token Bible. Everything You Need to Know About NFTs,” Devin Finzer, https://opensea.io/blog/guides/non-fungible-tokens/

Creating NFTs for Free on OpenSea,” Alex Atallah, https://opensea.io/blog/announcements/introducing-the-collection-manager/

Opensea vs Rarible – Which One Is Better?”, Marcus, https://www.youtube.com/watch?v=JU-wzuVLmds

NFT Trading History / Data Analysis Website, CryptoSlam, https://cryptoslam.io/

NFT Trading History / Data Analysis Website, Nonfungibe, https://nonfungible.com/

The question is, in which world do you stand to see NFT”, Lee Painting, https://www.chainnews.com/articles/019974268152.htm

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/top-position-research-report-rarible-rari/
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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