Let's talk about NFT

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2 years ago

Data show that in the past month alone, the global NFT art transaction volume has exceeded 400 million U.S. dollars. On the whole, the current market size of NFT has increased by at least 7 times compared with three years ago. The NFT market is entering a period of explosive growth.

At present, the number of NFT sales has exceeded 1 million, and the number of NFT wallets held has exceeded 1 million. Compared with the number of 1.6 million DeFi wallets, the development of NFT is very fast. And the highest selling price of a single NFT has been continuously broken in the past week, from 6.6 million to 7.8 million and a recent work sold at a price of about 69 million US dollars. In short, nft's market transactions continue to refresh our knowledge. An easy example, I drew a picture, and then my assistant bought it with 1 ether, and then I bought it with 10 ether, and let me buy it back again with my assistant for 100 Ether in this way to buy and sell back and forth, each transaction can raise the price, through this way to create heat, until the last picker appears, see this painting is speculated so high, thinking that he will soon be able to buy it, it was sold at a higher price, so he took out his 500 Ethereum and buy the nft work.

This is a counter-knock, which is actually a game of left-handed and right-handed. However, even if we discharge some of the trading volume, the real trading volume exceeds at least 200 million US dollars. For example, in the past March, there was a major event in the art market that is worthy of attention. The world’s top auction house, Christie’s, held its first digital art auction on the Internet. The auction was for an American graphic designer, Beeple , called "Every Day-First 5000 Days." This is a huge digital collage. At first glance, it looks densely packed, as if the entire painting has been mosaicked. But in fact, this collage is not easy. It took Beeple 13 years to create one image every day, and finally 5,000 images were used to form this painting. In other words, every small grid in this painting is a complete artistic creation of Beeple .

After this painting was sold, it was reported by mainstream media and non-mainstream media all over the world. In recent days, the record highs of Ethereum may also be related to the ranking of this painting . Now, the wealthy people around the world, especially those who like to collect art, pay attention to our currency circle.

Why is this auction attracting attention? First of all, this is the first auction of a digital art work by a top international auction house, which is of iconic significance, but what is even more surprising is that the final transaction price of this work is by far the most expensive NFT in history. The auction price at that time was 38,308 ETH reached 69.28 million US dollars at the time. If converted according to today's Ethereum, the price of this painting has exceeded 500 million, and this price has set a new record for digital art transactions.

In addition to artists, some stars and celebrities have also entered this field. In January of this year, NBA star LeBron James sold a video clip of his shooting in a Lakers game for $100,000. The American rock band Kings of Leon has made $2 million by selling NFT music. Just last month, the founder of social media Twitter, Jack Dorsey, auctioned his first tweet published in 2006 as an NFT, and finally sold for $2.9 million. Seeing this price, it makes people feel strange that for a long time, digital art has rarely been auctioned because it has no physicality, and it is very easy to copy and spread on the Internet. There is no scarcity at all. In that case, why did Beeple painting enter the auction channel again, and why the price was so high?

The key factor is the disruptive technology we are talking about today, NFT. It is it that gives digital art a scarcity that was not available before. I just recently saw an in-depth report on NFT in Time Magazine. The article believes that the emergence of NFT is shaking up the entire art market. Therefore, this trend is very worthy of our attention and participation, because today's NFT is the same as the ico in 2017, the ieo in 2019 and the defi in 2020. It is a very early stage.

Today’s NFT has formed a relatively complete industrial chain from planning, wallets, price discovery, secondary market liquidity, pass management, issuer tools, trading markets, issuance agreements. Moreover, the process of NFT generation is not complicated. For example, an artist creates a work of art, turns it into a picture, video or audio form, and uploads it to IPFS. At the same time, another NFT is issued to include the file in the original data. It's just like posting a post on a social network, it's not very complicated.

However, one thing to remember is that there must be a bubble in this market today, and the bubble will eventually burst, but there is a chance when the bubble bursts.

So when you participate, you must be cautious . At present, there is still a window period. This is a mixed market, and the threshold is relatively high. When entering this market, you must do your homework.

Let me tell you a few projects that can provide infrastructure for NFT in addition to Ethereum. The first is THETA, the second is enj, and the third is flow.

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