Public Chain and NFT Investment

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Avatar for arslankhalid
2 years ago
Topics: Cryptocurrency

NFT is hot for a while, and frequently on the news, but most of my friends do not understand the NFT field. Most people don't know which projects should be paid attention to and how to deploy. Even if they know that NFT is a non-homogeneous token, this may be a valuable field.

Let's Talk about NFT investment deep logic

Everyone who has experienced DeFi in 2020, some are good at buying low and selling high, some are good at discovering low-value items, some are scientists who use computer programs to eat the price difference, these people have made money. But for many friends are exchanging their Ether for a bunch of small coins such as pearls, cucumbers, sweet potatoes, etc., and it seems that if you exchange them back, ETH is becoming less - that is to say, your coins become less and you lose money.

And if you are optimistic about the value of the platform and have been deploying the platform currency of important platforms such as Uniswap, Curve, Compound, etc., the income from today's point of view is still good. Take Uniswap's platform currency as an example. Uni has risen 450% in the past 90 days. This 4.5 times return is believed to be much better than other DeFi short-term small currencies.

In the same way, when investing in a track, such as an NFT track, we should focus on the core value of this field. NFT (Non Fungible Token) is a non-homogeneous token, also known as an irreplaceable token. Compared with homogenized tokens such as BTC, ETH, etc., they have more commodity attributes than currency attributes . If it is confirmed that NFT is partial to commodity attributes, then the commodity trading platform is the first value;

The public chain where the commodity is located is where the second value lies;

The commodity itself is the third value.

The logic of the above three sentences will be explained in detail below.

Two platforms: Opensea, Rarible

There are many platforms such as Opensea, Rarible, superrare, terra virtua, etc., which are all NFT trading platforms.

Opensea and Rarible are currently the most famous NFT trading platforms , and Opensea does not yet have a platform currency. If it produces a market value of more than 500 million US dollars in the medium and long term-this market value is not small, and the current market share of the entire NFT track is Not big.

Rarible's platform currency (Rari) currently has a circulating market value of $3,849,880 . And some months before it was less than 7 million US dollars, of course it can be deployed. However, at that time, someone discovered the value of Rari, and there is no way to lay out too much, because the depth is too bad. Buying a thousand dollars can raise the price by more than 5 points. Similarly, some of the targets mentioned today are still in this state, you can only buy low order or uniswap slowly. If the operation is fierce, it is very likely to bear the pressure of loss in the short term.

Other platforms, such as Terra Virtua (TVK), do you want to deploy, large platforms have large funds, and small platforms have small funds. This market value is not enough for everyone to buy. Observe more and spend less money.

Three public chains: ETH, Flow, WAX

Why is the public chain not the first value, but the platform is the first value? It will be explained below.

At present, the most important public chains in the NFT market can be considered ETH, Flow, and WAX.

  • Background introduction of ETH in the NFT field

The classic NFT protocol standards such as ERC721, ERC1155, and ERC998 are all built on Ethereum.

ETH is still the most mainstream NFT public chain at present. Even if the NFT market fails, readers will still hold it. It's just that after emerging fields rely on ETH, it will make new contributions to the ecology and value of ETH.

  • Flow background introduction

Dieter Shirley, CTO of Dapper Labs, developed the ERC721 protocol standard in 2017 and made a great contribution to the development of the NFT field. In the same year, the first game on the blockchain, CryptoKitties, was also developed and marketed by the team, causing huge congestion on the ETH network. In 2020, DapperLabs launched the public chain Flow to serve decentralized game applications. NBA Top Shot is a project developed by the team at the beginning of Flow development, primarily the NBA Star Instant Photo-based NFT Card.

According to news reports from the previous months: "Calculated by historical total turnover, the turnover of NBA Top Shot surpassed CryptoKitties, reaching 29.48 million US dollars, ranking first, with 18,800 collectors. CryptoKitties retreated to second place with turnover. Nearly 29.41 million US dollars, the number of collectors is 91,900." It can be concluded that the two NFT products with the largest sales in NFT history were developed by DapperLabs.

  • WAX background introduction

WAX itself is a public chain built on the eosio-ETH cross-chain layer, which has considerable influence abroad, and then developed its own public chain also called WAX.

In one sentence, Flow and WAX were applications built on ETH and EOS in the early days. After they grow larger, they will develop their own public chains.

The value of these public chains is certainly not comparable to ETH, and compared to the two major trading platforms of Opensea and Rarible, which are growing day by day, their investment value also lags behind. This is why the platform is the first value and the public chain is the second value. You already have ETH, and the other two public chain values ​​have different opinions.

An important item in the third value: Whale.

Why this project? First of all, it is not because of the rise of concepts such as social tokens.

Let me talk about it, as a commodity, its individual NFT investment value is only in the third place. Because the value of a single NFT is difficult to judge. Whether it is game, card, charity, or art NFT. Of course, if you like some games, it’s okay to collect game props NFT; you like basketball, like NBA stars, and it’s okay to collect NBA topshot card NFT; you have a unique artistic taste. Special preferences, and sure that this is the future art trend, it is also possible to buy such NFT artworks.

If you just think that NFT is promising, and then you buy a bunch of crypto cats, a bunch of cards that you don’t understand, and some unknowledgeable artworks, then you have entered the pit of investing in NFT, and your profits will very low, investment will become a gambling game.

Why Whale?

In fact, Whale may not be able to, but this part of the NFT track is more reliable than investing in other NFT. The soul of Whale is Whaleshark, this person (this team or with a team) is the largest buyer in the NFT collection field. After Whale is issued, he will put all his NFT collections in a Vault, this vault. Every month, acts as a third-party audit agency to audit its value, and then a certain percentage of collection sales funds will be used to repurchase Whale tokens, so Whale is equivalent to an index fund in the NFT field.

This article divides the pattern of the NFT field in to two trading platforms, three public chains, and one project. These mentioned projects are worthy of attention. However, the short-term investment risk is very high.

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Avatar for arslankhalid
2 years ago
Topics: Cryptocurrency


Interesting information and well explain facts. I am a newbie to this platform, especially on trading. Thank you for these articles that made me knowledgeable to few important aspects of trading and its definition, terms and wisdom behind.

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