Although the entire crypto asset market is currently in a downward state, the NFT sector is performing very strongly. Among them, the representative MEME (Pineapple Points) rose 100 times a month to 1,700 US dollars, and it dominates the hot discussion list.
1. What is NFT?
MEME creatively combines NFT and DeFi, and its strong performance has driven the public's interest in NFT. NFT (Non-Fungible Token) refers to non-homogeneous tokens. Each token is unique. It is mainly used in games, artworks, domain names, collectibles, real asset tokenization (STO) and other fields, especially It is artwork and games.
Since digital assets such as game equipment can be copied infinitely, there is no scarcity and it is difficult to generate greater value. The NFT that uses blockchain technology to provide solutions can guarantee the scarcity and uniqueness of the digital asset.
MEME originally originated from a joke. Jordan Lyall created MEME tokens based on his jokes, with a total of 28,000 tokens, of which 26,000 were used for airdrops, and the remaining 2,000 were used to create ETH/MEME mining pools. Users can earn MEME (pineapple points) by pledged assets, and when they have enough pineapple points, they can redeem a limited edition NFT.
MEME currently focuses on the NFTization of the art market, which is also the source of MEME's value. The artwork creation of the platform is currently mainly concentrated on celebrities in the crypto field, such as Bitcoin founder Satoshi Nakamoto, Ethereum founder V God, YFI founder, Chinalink founder, etc., and it can continue to expand to more fields in the future.
2. Niche market NFT
Except for a few collectors who advocate the value of encrypted art, most friends who pay attention to the blockchain field know about NFT because of participating in DeFi liquidity mining.
Games and entertainment, digital collectibles, art, and insurance are areas that are naturally suitable for NFT transformation.
Crypto art trading platforms include Wrapped Cryptopunks, SuperRare, Async Art, MakersPlace, etc.
Digital collectibles platforms include CryptoKitties, Artfinity, Blockchain Cuties Universe, etc. Well-known projects in the game and entertainment fields include The Sandbox, Decentraland, Somnium Space VR, Enjin , etc.
Among them, encrypted artworks have achieved good development results. In the past week, the turnover of NFT works traded through MEME exceeded 270 ETH.
In the SuperRare encrypted art market, artists from 178 countries and regions around the world have earned more than US$2 million.On September 22, SuperRare released last week’s "Art Market Weekly Report", which listed 10 works that were sold for more than $1,600.
In August, according to coindesk reports, the National Basketball Association (NBA) and Dapper Labs cooperated to launch a blockchain-based digital platform for collectibles: NBA Top Shot. According to the company, fans can buy and sell the game, as well as trade the actions defined in the game, and its digital collectibles can be used in on-chain games or tournaments. NFT has strengthened the connection between NBA stars and many fans, broadened the sense of participation and identity, and provided a larger market for the fan economy!
3. The future value judgment of NFT
According to cryptocurrency investor Lark Davis, NFT will unveil the next big event in the crypto field, which may trigger a 100-fold increase. As the crypto market develops and expands, it will continue to provide new and profitable opportunities, which deserve attention!
However, we must also see some of the problems currently facing NFT:
1. Insufficient infrastructure , lack of various functional agreements, and higher thresholds for ordinary investors to learn and participate .
2. Driven by speculative demand , project tokens fluctuate greatly in the short term, and market speculation cannot support the true value .
3. The overall market represented by art collections is not large , and there is an urgent need to cultivate new areas to make the cake bigger.
NFT has a bright prospect that can drive the implementation of encrypted assets to real needs, and can carry richer and unique asset values.
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