In the field of digital assets, which is a hot spot that changes rapidly and new favorites emerge in an endless stream, the rise of subversive rules and new concepts seems to be easier, and the imagination space that can be brought is not limited by the shackles of boundaries.
For example, this year, NFT suddenly replaced DeFi, Ethereum 2.0 and other sectors and became the hottest concept at the moment. We seem to be able to see its popularity from the development track of the NFT market and related data: from 1 million US dollars to 30 million US dollars, It took less than four months for the NFT market to achieve a 30-fold increase in daily transaction volume; as the main battlefield for NFT transactions, the cumulative transaction volume of Opensea has increased from 2 billion US dollars to 4 billion in one month The doubling of the large base of the US dollar is a feat.
In June 2021, Alipay announced the launch of the Dunhuang series of NFT skins; in July, McDonald's and Coca-Cola successively announced the launch of NFT charity auctions; in August, well-known brands such as Porsche, LV, Audi, Marvel, and Burberry also announced their entry into NFT. Curry, a well-known NBA star, also bought the NFT work of Bored Ape Yacht Club (boring ape) at a price of 180,000 US dollars, and replaced it with a social media avatar.
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LOOT, can it be the beginning of a new era of NFT
The sudden emergence of NFT seems to be attributable to two points: on the one hand, it is the blessing of major brands, Internet giants, and celebrities from all walks of life. On the other hand, it is because it can carry people's romantic imagination of the metaverse and parallel worlds, and those technological movie bridges that cannot be achieved due to the rules of the real world seem no longer out of reach. For many people, NFT is the basic building block for building the Metaverse. From pictures, virtual characters, music, to video clips, the form boundaries of NFT are constantly being broadened. Recently, the NFT project LOOT in the form of TXT text has appeared.
I believe that many NFT followers have fallen into deep doubts and self-doubt in the past few days: Why do some black-and-white pictures appear frequently on various social channels, and these seemingly costless text files can be It was sold at a sky-high price of 13 ETH. This is the NFT project Loot initiated by Dom Hofmann.
For the emergence of Loot, two distinct voices appeared in the market:
Highly appreciative people such as Cao Yin think: "The emergence of Loot is like Uniswap. The emergence of Uniswap brings a new paradigm of financial transactions, and Loot builds a new paradigm of NFT, opening a new era of NFT composability." Coincidentally, Ou Yi JayHao, CEO of OKEx, also expressed similar views on Loot: LOOT has opened up a whole new world for the NFT market, just like the emergence of ETH back then. Kyle Samani, managing partner of Multicoin Capital, even believes that Loot is a new type of social coordination and capital formation mechanism, which can be an upgraded version of DAO (as of the end of this writing, Multicoin Capital has purchased Loot worth tens of millions of dollars). It can be seen that supporters generally believe that Loot has subverted the construction logic of NFT, and it is a deep-seated innovation that broadens the development boundary and injects more possibilities for the NFT market.
On the other hand, those who are on the sidelines or questioning think that Loot is just a whim experiment, or a brand-new way of hype, because it lacks a complete narrative system and landing facilities, it is destined to be gradually forgotten and submerged in the torrent of market development.
Regardless of how the two statements are tit-for-tat, we can still take a look at Loot's situation from the data:
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What exactly is Loot Project?
On Loot's official website, there is a relatively short project introduction, which translates to: Loot has no attributes or imprints such as company, art, brand, etc. It is the building block of stories and games. The pursuit of decentralization is provided by the community for free;
It can be seen that Loot was able to obtain the pursuit of funds and market recognition, mainly because of its fair mint casting form: the initial total of Loot is 8,000, including Loot before #7777, anyone can claim it, and the remaining 222 , it is reserved for contract deployers (#7778~#8000). Anyone can use the smart contract code to obtain an NFT in TXT file format consisting of 8 adventurer trophies, in which eight lines of white characters represent: weapon, breastplate, helmet, waist armor, foot armor, hand armor, necklace wait. In order to generate scarcity immediately, the contract will also assign the owner an ID with a prefix or suffix added according to the hash value (the occurrence probability of the prefix is about 8.7%, which is more scarce).
Compared with traditional NFT, Loot is a bottom-up construction logic. While being more decentralized, it also leaves more space for creation and development. Generally speaking, the value of NFT mainly depends on the ecological expansion capabilities of the creative team, incentives, and the scarcity, artistry, and social attributes of the works. The value of Loot is completely determined by the community. On the one hand, participants in the Loot community can build a more open creative ecology, using Loot as the basic module to present their own imagination, such as hand-painted, hanging ornaments and other works, or a variety of interesting and interactive story lines . Loot provides the most basic elements, but it greatly stimulates the creative desire of community participants, which is the main reason why Loot was able to win the NFT market in a short period of time.
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Ouyi launched the LOOT split tool, and the paradigm innovation continues to deepen?
The explosive growth of the NFT market not only attracted a large number of brands and giants to enter the market one after another, but also provided more business development directions for the centralized platform of the digital asset industry: how to build its own NFT platform and connect users and the NFT world While channeling, it also brings more possibilities and room for development to the NFT market. For example, Ouyi OKEx has recently launched its own NFT market, which helps high-quality projects, artists and stars to issue NFT assets at the first level, and also brings more choices and trading opportunities for users. After Loot opened up a new pattern for the NFT market, Ouyi also responded urgently and launched the Loot split tool. So, we might as well analyze what this tool means to Loot, and whether it can bring an opportunity to deepen the innovation.
As mentioned earlier, due to factors such as the number of Loot, the number of addresses held, and the floor price, there are liquidity problems. Let a lot of interested people who try to join it retreat. It is understood that the Loot splitting tool provided by the Ouyi NFT platform can split eight adventurer equipment, including weapons, chest armor, helmet, waist armor, foot armor, hand armor, and necklace, into 8 independent equipment , and the value of the original Loot will also be dispersed among these "fragments" according to market recognition. These split equipment can be traded and circulated as independent units. The increase in the number of transaction modules and the reduction in the unit price after the split will undoubtedly lower the participation threshold for Loot, thereby increasing the liquidity of the entire ecosystem.
On the other hand, in addition to splitting Loot into independent equipment units, the tool also supports reassembly. For example: Holders can split up their Loots, and then choose their favorite equipment in the market for reorganization, so as to obtain better quality equipment or a combination of equipment that better suits their needs. For example, replace the helmet of #3043 with that of #2797, or replace the breastplate of #7881 with other Loots. This undoubtedly gave participants more room for interaction and reorganization. Greatly improved playability and social attributes. For an NFT project whose value is entirely determined by the community, this seems like a good choice.
In addition, we can further imagine: if the frequency of these split and reorganization actions is high enough, more profit opportunities can be derived. For example: when the scarcity of a certain independent equipment unit in the market continues to increase, its corresponding value will be separated from the influence of the original Loot, and will be greatly improved by the promotion of market behavior.
Whether the Loot split tool launched by the Ouyi NFT platform can be highly recognized by the market and the community, and give back more possibilities to the community, is still an unknown that needs time to verify. But it is undeniable that this splitting tool can indeed solve part of Loot's liquidity problems and broaden the boundaries of project development. As for whether this "NFT paradigm change" can be pushed to a deeper level, let us wait and see.
