The NFT industry seems to have become a major player in the blockchain universe. Whether it is the blockchain market or the traditional financial industry, they have turned their attention from mining to NFT. New NFT projects have sprung up like mushrooms. Detonating the strong momentum of the next wave of encryption, the hot wind of NFT has also blown from the circle to the outside.
At the same time, this craze has long been limited to digital art collections. In sports, music, games and other industries driven by the "fan economy", the emergence of NFT technology has brought more possibilities for financial investment.
After three years of deposition, NFT recovers
The earliest NFT can be traced back to 2017. There was a pixel avatar project called CryptoPunks in Ethereum. At that time, anyone with an Ethereum wallet could receive it for free, and then go to the secondary market to trade. Later, the small explosion of NFT was the popularity of Cryptokitties, which shined in the 2017 bull market and became the first explosive DApp that paralyzed the Ethereum public chain.
In the encrypted cat game, users can buy, collect, sell, and breed virtual cats. Different cats have a unique combination of attributes, and even each cat has a different combination of eyes, fur, tail, mouth, and even expressions. It is precisely because of this rarity that the cat image in the game becomes an NFT for trading and collection.
Three years later, the Flow blockchain developed by the same team, Dapper Labs, made a comeback. Its NFT card game NBA Top Shot broke the previous record with 1/6 of the number of CryptoKitties users in just 3 months, setting a record of 21 million US dollars, the user retention rate is as high as 75%.
The origin of NFT's real circle
When it comes to the real outing of NFT, it may be inseparable from the involvement of celebrities and traditional finance. Twitter founder Jack Dorsey sold his first personal tweet in 2006 at the Valuables online auction in the form of NFT, which read "just setting up my twttr". The final transaction price of this tweet exceeded 2.9 million US dollars.
Tesla CEO Musk announced on Twitter that an NFT-themed self-created dance song will be sold as an NFT. In the background of the dance track video, an NFT trophy spins in space, surrounded by cryptocurrencies.
Not only that, in this round of NFT trend, the entry of the luxury goods industry and the traditional art auction industry is the main force driving NFT out of the circle. In a special auction at Christie's, the purely digital work "Everydays: The First 5000 Days" by American artist Beeple was sold for nearly 70 million US dollars, setting a new auction record for digital art.
The "siege" dilemma of NFT out of the circle
Although NFT is widely regarded as a breakthrough product that ignited the blockchain field after DeFi, there are still some unavoidable "bottleneck" problems in NFT in the early stages of development. A large number of inferior works of art began to appear and sell in the form of NFT. The madness of the market exceeded the imagination of artists, and criticism of digital art followed. What is shocking is that Beeple, the current biggest beneficiary of NFT, immediately exchanged all ETH for US dollars when receiving ETH payment after the auction. In the eyes of many people, this looks like a traitor who suffered the blessing of NFT but escaped in an instant.
Not only that, the bubble in the NFT market is serious, and application and development still face other risks. As far as NFT itself is concerned, it is still facing difficulties such as imperfect infrastructure and liquidity problems; as far as the external environment is concerned, the ecological development of NFT has encountered problems such as bottlenecks, absence of copyright, security loopholes, and policy supervision. This has caused the phenomenon that NFT seems to be prosperous, but it looks like a castle in the air.
Many "explosive models" of NFT are out of the circle
As we all know, NFT will have rich applications in artwork, music, culture, public welfare, trendy games, games, sports, ACG, etc. More and more hot money will be released on the street, which will inevitably make people outside the blockchain industry Users have a deep feeling.
Although NFT itself still has some limitations at present, it does not hinder the future development of NFT. In the previous article, we mentioned that NFT is composable, and since NFT is a product of the integration of virtual and reality, compared with other block-based With the application of chain technology, the combination of NFT and reality is closer and more practical. Therefore, the future of NFT may be more combined with financial attributes such as lending, games, and capitalization to accelerate its circulation.
At present, the most active plate art of NFT in the market has become the earliest hot spot for capitalization. Deutsche Bank, Citibank and Bank of America and other financial "giants" have issued artwork financing credit as early as ten years ago. Art connoisseurs make corresponding price judgments on the evaluation of the appearance, preciousness and integrity of works, so as to unlock certain liquidity by using artworks as collateral. On the basis of traditional concepts, the encryption market integrates the popular DeFi gameplay last year, and many NFT projects that have emerged this year are adding DeFi native concepts such as liquidity mining.
CROSS new gameplay - liquidity breakthrough
Although the field of NFT is wide, there are currently four sub-markets that have become popular, namely Art-NFT (art collection), FI-NFT (DEFI financial certificate), IP-NFT (intellectual property) and Game-NFT (game).
CROSS, a decentralized NFT platform, has included Mystery Box (Game-NFT) and ART-NFT. At the same time, it is also planning and expanding IP-NFT and FI-NFT. It adopts CROSS Loans to solve liquidity problems, and will use CROSS auctions in the future Successful NFTs can be borrowed through mortgages, and the cycle goes back and forth to form an ecological closed loop, allowing NFTs to truly flow.
In addition, all non-physical goods can be used as NFT. There is still a wider space for the NFT market, and at the same time, there are more applications for NFT. Through the digital circulation of private equity and trust shares on the chain, the combination of DeFi and NFT can accelerate the process of asset digitization and digital assetization faster.
epilogue
Although the outside world has many doubts about NFT, the current NFT market is still thriving. At present, the mapping of traditional game props, artwork, real estate, and intellectual property rights to the NFT network is the most direct way to detonate its market, solve real real economic problems, and provide liquidity for real assets. In short: the flow of NFT Sexual premium is the core that supports its value as a long-standing "asset".
It is believed that innovative tools such as NFT loan mortgage products and NFT exchanges will continue to emerge. Whether it is art collections, real estate, or intellectual property rights, more and more people will no longer worry that the NFT products purchased at high prices cannot be sold. CROSS focuses on the future and will break the limitations of NFT through borrowing, or will Amazing the entire NFT economic field.
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