What is NFT? Enlightenment from 30,000 transaction records of the “boring ape”
When did you first hear about NFT?
Wong Kar-wai cast the unpublished footage shot on the first day of the movie “In the Mood for Love” into an NFT. Quentin Tarantino announced plans to auction the seven “exclusive scenes” of his film “Pulp Fiction” in the form of NFT. SM Corporation, the “giant” of the Korean idol industry, announced its entry into the NFT business. NBA star Stephen Curry bought an NFT ape as the profile picture of a social networking site. Tencent distributed NFT souvenirs to every employee. The 24-year-old young artist made $300,000 a year by selling NFTs. NFT is like a monster that only breaks into the public’s field of vision, with fresh faces and unknown origins. But what is NFT?
What is NFT
NFT (Non-Fungible Token) is a non-homogeneous token based on blockchain technology. Compared with the most famous application of the blockchain, “Bitcoin”, Bitcoin is a homogenized token. If mixed together, there is no difference. Each NFT is unique, which means it can map the virtual world. The videos, sounds, images, and all kinds of native digital creations can also mirror everything in real life. NFT redefines “ownership.”
If you buy an NFT artwork, such as a JPG image, you will no longer be afraid of its fakes and copies, because your ownership of it has been written on the underlying blockchain of NFT. The change of NFT ownership will be written on the blockchain, open, transparent, and cannot be changed. If combined with Metaverse, NFT can provide a proof for digital assets-your accessories, clothes and even the land in the virtual world really belong to you.
For the art market, NFT is a technology-the auctioneer does not need to provide any evidence to prove that the auctioned digital art is “authentic”, and what it endorses is the almost impeccable algorithmic logic of the entire blockchain. Digital art auctions, and their secondary markets, are booming.
In March 2021, the auction company Christie’s first NFT art auction ends. Digital artist Beeple’s NFT work “Everydays: the First 5000 Days” fell for US$69 million (approximately 440 million yuan).
The fantasy drifting of ten thousand apes
Ten thousand apes are waiting in the void to be born. Their characteristics are randomly generated by the program, with different combinations of bodies, heads, hats and clothes. This process is like opening a blind box. According to the “New Yorker” interview with the creative team of the NFT series “Bored Ape Yacht Club”, every picture will be hidden until the original collector pays it. .
The blockchain records the birth date of each “boring ape” and their original collector. On the evening of April 22, 30 “boring apes” NFTs were first “cast”. The next day, the ownership of the remaining 9,970 digital apes was sold at a unit price of 0.08 Ether (approximately RMB 1,449). The images of “boring apes” of various shapes were successively unveiled. According to media reports, on April 30, the series Officially launched, it will be sold out on May 1st.
Some features are rare and therefore precious, such as laser eyes and rainbow skin. If collectors can own such a rare “boring ape”, then the profit margin in the secondary market will be huge. For a few cryptocurrency “big guys”, at the beginning of the announcement of NFT works, it is a common strategy to buy a large number of NFTs in batches and sell them after the price rises.
In an interview with The New Yorker, the author Goner explained the origin of the name “Boring Ape”: “In the crypto industry, he spent his pockets to buy a new token or NFT, risking the risk of losing a large amount of money, and was called It is’Stud’ (Aping in in English, borrowed from the word Ape).”
On May 1st, a buyer bought 1,250 “boring apes” in one go, quite like a big brother in the “boring apes” world (the transaction record only contains a long list of buyer’s wallet addresses, for ease of description, later Wen will call it “Big Brother”). He “stud”.
But if we only look at the subsequent multiple resale transactions on the “boring ape” series, these 1,250 apes have not turned “Big Brother” into the most brave gold digger on the market. Calculated on the basis of the sale amount of second-hand transactions, “Big Brother” earned about 34.78 million yuan from “Boring Ape” alone, ranking third among all traders. The most outstanding buyer, from the bright side, was late for admission. Later, at a cost of only 170,000 yuan, the final income was 48.2 million yuan. He was a “monopoly” who made a lot of money (for the convenience of description, later Call him “Monopoly”).
In the “boring ape market”, the starting line does not determine the ending. With the first-mover advantage of 1,250 “boring apes”, why didn’t “Big Brother” make the most money? Maybe it was because he shot too early.
He bought No. 1734 “Boring Ape” 4 hours later and sold it for about 56,000 yuan. More than three months later, the 1734 “boring ape” was sold for 8.856 million yuan, becoming the most valuable “boring ape” resold by “big brother”. However, “Big Brother” did not show all the cards. Now he still holds 24 “boring apes” in his hands, waiting to be sold.
Boring Ape: Identity Tags or Financial Products?
“Boring Ape” is very fashionable. It is not just a pixel map, an avatar on a social networking site, it also brings a whole community of collectors, various status symbols, “a bit like wearing a high-end watch or rare sports shoes”, one The name “boring ape” collector describes it like this. In addition, it was the first group of clubs to give individual buyers the right to commercialize “boring apes”.
But these benefits are not the only reason why “boring apes” are selling at sky-high prices today. Most of the time, the “boring ape” is more like a financial product to buyers. Its price has been speculated to be high, among which, there is a “monopoly” in the hands of the promotion.
He seldom photographed the “boring ape” personally, only two of the more than one hundred transactions he participated in. Most of the time, he obtains the ownership of the “boring ape” from others. In the “boring ape” transfer record on the blockchain, the other party did not charge him.
On OpenSea, the world’s largest NFT trading platform, “Monopoly” and the 4 buyers who are close to him have similar usernames, with “MightyMaxy” as the main body, followed by a number. With them, there are at least 14 OpenSea users with such a name format.
The four buyers who often cooperate with “Monopoly” used packaged Bitcoin (WETH) when they took the “Boring Ape”, a token that is more suitable for bidding for NFT in the secondary market. The blockchain itself is a big account book. According to the transfer records they leave on the blockchain, the “monopoly” will transfer money to these buyers. Before or after the transaction, the amount is slightly higher than the final transaction price. The buyer will convert the bitcoin transferred from the “monopoly” into WETH, buy the “boring ape”, and transfer the purchased “boring ape” to him. The “monopoly” will usually transfer it within a few hours “Boring Ape” sold.
These buyers have a very close relationship with the “monopoly”, and occasionally transfer the boring apes in their hands to others for “free”, but not many. Among them, “Buyer No. 1” and “Monopoly” contacted 56 times, concentrated in August; “Buyer No. 2” 20 times, which occurred in July; “Buyer No. 3,” 10 times, were ” The “new favorite” of “Monopoly” occurred in the last two months; “Buyer No. 4” 6 times, mainly in September.
These 4 buyers, including other buyers with similar username formats, have left intriguing footprints on OpenSea. They either ceased their activities 3 months ago or are still active, but without exception, they will participate in a large number of auctions at the same time. “Buyer No. 3” has already transferred the photographed No. 6112 “Boring Ape” to “Monopoly” on November 17, and records show that on December 6, “Buyer No. 3″ still participated in No. 6112.” The auction of “boring ape” seems to not really be taken, but to increase the volume of the “boring ape” auction.
Unlike the “Monopoly” and his “legion”, the buyer who spends the most money, the “Rich”, buys and sells by himself, and achieves extraordinary results. Of the 20 monkeys with the highest value at the time of data crawling, 7 of them were involved in the transaction.
So far, every “boring ape” is very expensive.
At the same time, according to the Smart Contract, NFT can automatically transfer the transaction price to the creator in a certain proportion during each resale. Therefore, the creative team of “Boring Ape” also achieved the freedom of wealth by relying on these apes who were set to “become idle because of their involvement in the encryption field to achieve the freedom of wealth”.
The hot market and its entrance fee
Popular NFT series like the “Boring Ape” series have become popular talks. They are attracting investors, creators and even ordinary people to flock to the NFT market for fear of missing the next “freedom of wealth” opportunity.
A technical team called Moonstream has published a data set covering 9,000 NFT projects from April to late September 2021. It records the sender, receiver, value, timestamp and in the blockchain of each transaction. s position.
Data analysis found that, if sorted by transaction volume, the transaction volume of the top 20 NFT series accounted for 53% of the total market transaction, but in terms of volume, they only accounted for 0.3% of the total 6283 series.
In other words, the head effect of the NFT market is still very obvious.
What if an individual wants to buy an NFT? The Paper conducted an experiment and found that opening a virtual currency wallet requires an entrance fee called “Gas fee”, which is currently priced at 0.03 Ether (ETH), which is about 1,000 yuan. “Gas fee” is the fee that needs to be paid for “blocking chain”. The higher the “gas fee”, the greater the chance of chaining. This transaction is only valid if it is successfully connected to the chain.
If someone intends to buy NFT, they have to pay the entry fee of 1,000 yuan, and the price of the NFT that the experiment wants to buy is only 0.003 ETH, which is about 83 yuan. The high entrance fee discourages ordinary people.
So when to enter is also a kind of knowledge.
Going back to December 17, 2016, one Ether was only worth 7.82 US dollars, and it only needed 1.5 yuan to open the wallet. Early players of Ethereum have a greater advantage.
Buterin, the founder of Ethereum, commented on NFT: “NFTs will always exist, but I think it may be too early to announce that NFT marks a paradigm shift. NFT has not experienced a boom and The complete cycle of the depression. Of course, so far, it looks promising, let’s wait and see.”
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-is-nft-enlightenment-from-30000-transaction-records-of-the-boring-ape/
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