Text︱Joanna
Recently, NFT has successfully taken over DeFi and has become a new hot topic in the currency circle. Unfolded data shows that the search volume of the keyword "NFT" on Google has almost reached the search volume of the keyword "ICO" at the end of 2017. Its heat can be seen from this.
However, it is works of art and celebrity effects that push NFT to a climax. Among them, Beeple's NFT work "Everydays: The First 5000 Days (Everyday: The First 5000 Days)" was sold for US$69.34 million at Christie's auction house, which was undoubtedly an explosive event for NFT and caused a great sensation.
On March 31, NFT-related content appeared in the "Economic Information Network" column of CCTV's financial channel. In the report, it introduced the world's first NFT exhibition gallery held in New York, USA, and said that since the outbreak of the epidemic, NFT has attracted a lot of money.
At the same time, the NFT explosions in the current market are one after another, and there is no way to stop.
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The "NFT" standing on the wind
"From the table, NFT seems to be a new way for celebrities to play. And behind its 'crazy', the value of NFT is highlighted." Jason, an encryption market analyst, said that due to the rising attention of NFT, its next There will be explosive growth.
In fact, NFT is not a new thing. The relatively unified view in the currency circle is that NFT can be traced back to 2017, and the popular DApp CryptoKitties on Ethereum is the first application with NFT attributes.
NFT, or Non-Fungible Token, means non-homogeneous token, and is the only and indivisible Token. As an important application form of blockchain technology, its common application scenarios include artwork, bill vouchers, game props, etc.
"NFT uses the ERC-721 (Ethereum Implementation Proposal 721) protocol to define a new technical standard for it." Jason said that compared to ERC-20, ERC-721 and ERC-1155 are non-fungible tokens for the Ethereum network. standard. Therefore, NFT is characterized by its indivisible and unique attributes, just like there are no two identical leaves in the world.
According to media reports, as of the end of 2020, the five major encrypted art platforms (SuperRare, MakersPlace, KnownOrigin, AsyncArt, and NiftyGateway) have sold a total of 53,663 unique artworks.
According to data from the NFT statistics website Nonfungible, a total of 5 million NFTs of various types were sold in 2020, with a total sales of nearly 150 million US dollars. Although it is only a drop in the bucket compared with the $63.7 billion annual transaction volume of the traditional art market, in the encrypted world, the number of artists, artworks and collectors may be much more than the traditional art market.
This year, the detonation point of NFT was a work of art, and then swept the art world. Among them, Beeple's NFT work "Everydays: The First 5000 Days (Everyday: The First 5000 Days)" is the first purely digital art work supported by a large auction house at Christie's auction house.
It is understood that "Everydays: The First 5000 Days" consists of 5000 pictures. It is an art NFT commemorating Beeple's continuous creation of 5000 days since May 1, 2007, and insisting on one work every day.
With the spread of the NFT craze, it quickly spread in sports, music, games and other fields. For example, the cover of "Time Magazine" magazine, the first tweet of Twitter CEO and founder Jack Dorsey, etc. completed the auction in the NFT market, which all played a role in fueling the flames.
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The potential of the NFT track is huge
Recently, the NFT market has been active, and major companies, well-known brands, and celebrities have all shown strong interest in this field. At the same time, many people in the currency circle are also trying to enter the NFT market, which can be described as flocking to them.
In this regard, Cao Yin, managing director of the Digital Renaissance Foundation, said a few days ago that, first of all, the investment logic of each track in the NFT market is different. To invest in NFT, it must be based on the role of NFT; There are few users, the market is small, and there is no liquidity challenge. However, the combination of NFT and DeFi is still very imaginative.
The DappRadar report shows that in 2020, the daily activity of the NFT market increased by 226%, reaching about 3,400 DAUW; the transaction volume of the NFT market increased by 785%, reaching 78 million US dollars. By February 2021, the NFT market had processed more than $340 million in transaction volume, the highest monthly record. Among them, NBA TopShot is the most active NFT market, with a transaction volume of more than 225 million US dollars.
However, weekly NFT trading volumes have been steadily declining since peaking in February, according to The Block. On March 23, the original EOS founder BM tweeted that the power of NFT has not yet been fully realized. I'm working on a new use case that could change the way communities are built and money grows.
Ripple Chief Technology Officer David Schwartz said in a recent interview that he thinks two points related to NFTs are interesting, one is the "motivation of people to collect things" and the other is the concept of digital rights. He pointed out that although many people currently have "bundled digital rights", the user experience of these rights is not good.
"NFT is a new type of digital asset running on the blockchain technology network. NFT is a 'value machine' that empowers all things, and it will soon trigger a ten-year opportunity for asset digitization." On March 29, Yu Jianing said in a In an event, it was stated that everything in the future can be NFT.
He believes that in the short term, it is mainly to realize online virtual property represented by artworks to realize digital confirmation, circulation and transaction; In the long run, through the oracle system, etc., the process of realizing physical assets from online assets to on-chain assets will carry richer asset values.
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Beware of making wedding dresses for others
NFT has just taken off, and its ecology is still growing rapidly, but cautious voices have emerged.
"The popularity of NFT has made people realize the potential of this technology to generate income." An industry insider said that in the current NFT market, investors often focus on its scarcity, which is not a good thing. He believes that neither Bitcoin nor NFT can escape the traces of being "hyped".
Not long ago, Ethereum founder "V God" stated that NFT can be applied to social welfare-related causes such as charity and funding, but the technology is still regarded as "a casino that mainly benefits wealthy celebrities." “Helping a celebrity like Elon Musk add $1 million in the bank by selling NFTs has little social value. However, with support and coordination, this non-fungible token could have a significant impact on other areas of society ."He said.
At the same time, due to the large fluctuations in the price of digital assets, Beeple was also deterred. He said he was "spooked" by ethereum's volatility and immediately cashed it out into dollars. Additionally, Beeple claimed in an interview with Fox News that NFT prices are "absolutely" a bubble.
Fanner Media CEO Gary Vaynerchuk also expressed the same view. He said NFTs are like the dot-com bubble, very similar to where internet stocks were in 2000, though he doesn't doubt the technology will have staying power. Vaynerchuk also said, "The Internet is a game-changing technological revolution, but many early-stage projects are simply overpriced because they are too excited."
He also firmly stated on Twitter that 99% of NFTs will not be good investments, and there will be some large-scale crashes in the next 12 to 24 months. In this regard, some netizens commented, "The same is true for Bitcoin, and it will go back and forth like other things." Vaynerchuk replied, "Bitcoin has a (supply) upper limit, but NFT projects do not. NFT as a whole is amazing , many amazing things and projects will happen, there will be trillions of them.”
In addition, John Egan, CEO of L'Atelier, a subsidiary of BNP Paribas, believes that NFT is currently one of the riskiest asset classes, but they will form the "cornerstone" of the virtual economy.
Ji Tao, a researcher at the Auction Research Center of the Central University of Finance and Economics, said that at present, NFT art only occupies a small share in the contemporary art market, and it may have a parallel relationship with the traditional art market, so it will not shake the original foundation.
