NFT has been hyped hotly since this year. Whether it is encrypted artwork, wonderful moments, characters or land, any limited-release NFT has been fired to an unprecedented price, which has driven people's frantic buying spree.

A pair of socks on Uniswap sells for as much as $160,000.

NBA superstar LeBron James' dunk "highlight moment" NFT sold for $208,000.

Beeple sold his collection for $69 million at a Christie's auction.

Alien CryptoPunk sold for $7.2 million.

NFTs of applications such as NBA Top Shot, Sorare, CryptoPunks, Axie Infinity, The Sandbox, etc. are being snapped up by people, and the high ETH gas fee is not worth mentioning in front of capital.

However, will the current upsurge of NFT promote the industry, and what will the future development of NFT be like? This is what people pay attention to, because when the bubble is too huge, no one is obsessed with whether it is an NFT.

Let's take a look at its basic concept again: NFT is a non-homogeneous token, such as text, audio, video, etc. These are irreplaceable categories that cannot be used for circulation. Currently, the main casting standards used are ERC-721 and ERC- 1155.

Due to the low-threshold casting standard, many people want to sell their indivisible assets at a high price, and even switch their left hand to right hand to raise the price, create news, and hype hot spots, etc., and even attract some Hackers have switched from DeFi to NFT, implementing the behavior of "cutting leeks" for those who don't understand.

So how did the value standard of NFT come from? It needs to anchor a certain physical asset or IP. For example, for a singer, his album can be made into an NFT; for an artist, his artwork can be made into an NFT; for an author, his articles can also be made into an NFT. But this is not the source of people's hype. It needs to have one of two capabilities: either it is a creator with its own IP, or the level of this NFT work has reached a certain level.

Some people may refute that the game itself is a kind of NFT, and now there is a proprietary synonym Gamefi, but I personally think that it is far from the value standard of NFT, because a game must first be a good product , more people will use it, and select some people who are willing to consume. However, the playability of games on the chain today is far from reaching the level that can attract users outside the circle. It is just a webpage covered with NFT It's just a game. If there is no such gimmick, I believe many people will not consume it.

Next, let’s talk about the availability of value in the current NFT market. The first one is borrowing. Using NFT assets to borrow money should be a problem that must be solved, just like it is completely feasible for me to use my house as a mortgage guarantee in the off-chain scenario. Many people think that The value of NFT assets is too fluid to be evaluated. Does the house have no value change? Aren't so many real estate speculators also trying to earn this part of the appreciation space?

The second is the transfer problem. Suppose one day I want to transfer the NFT I bought at a high price in order to obtain a certain amount of profit, but I don’t know how long this transfer cycle will take and whether it will depreciate. From the current market performance Looking at it, there are many sellers and a small number of buyers, so it is still in the stage of imbalance between supply and demand.

In fact, the production process of NFT is very simple. Everyone can create an NFT, but its source of value is not available to every NFT. Now most NFTs are just following the trend, and many of them have no actual value. This ratio may increase. Up to 90%.

Of course, this is not to say that the existence of NFT is meaningless. For example, the medal awarded by the country to outstanding soldiers has a sense of value that is much higher than its own value; or if the land is auctioned as an NFT, you can use this land to build a The virtual world, and this land also exists under the chain.

There are still many such scenarios, and NFT will definitely have many applications in copyright confirmation, digital assets, honor building and other aspects in the future.

But it is also recommended that everyone should not be blind about this, and must choose whether to enter the market after accurately evaluating its value target.