* * * Original: Liu Jiaolian * * *
Bitcoin stabilized and recovered overnight, returning to above 27.5k.
The NFT market seems to have collapsed. At first it was Brother Maji who retired due to a loss, and one of his strong opponents also declared bankruptcy. Fans of Jay Chou Phanta Bear are defending their rights everywhere. Trump broke after the second wave of NFT snap-ups, and fans were reaped. Yesterday I saw the founder of Cool Cats announce his withdrawal.
Some KOLs cried on Twitter, and the NFT market collapsed. Even the NFT OG of Cryptopunks with the avatar tweeted sadly, "NFT will never return to the peak of 2021." Why? Because the “culture of NFTs is dead.”
He recalled that 2 years ago, the culture of the NFT market was pure joy, excitement and laughter, the joy of community belonging. However, everything has changed now. Because of greed and selfishness. Community and joy have left us.
He posted a screenshot of Blur's UI interface for NFT speculation that imitates currency speculation, as well as a statistical graph of user migration and decline in the NFT market.
He went on to say that people used to be happy to mint and trade NFTs. Right now people are only excited about shitcoins, and these are pretty much all scams. Some claim that this is the cycle and that NFTs are evolving. But this is ignorant talk. The NFT culture that we enjoyed 2 years ago will never come back. Today's NFT culture has become: greedy, dishonest, fraudulent.
Figure: NFT market user data
The author does not want to talk about grand plans. The author just wants to talk about a little knowledge.
Speaking of which, it has been a long time since I bought NFT. Looking at the NFT purchase records, the most recent one is already in July 2021. So much so that I was looking for the last NFT work "Bitcoin Angel" I bought this time, but I couldn't remember the name of the platform all at once.
Picture: Bitcoin Angel, Trevor Jones Art
This "Bitcoin Angel" is also the cover image of Educational Chain's Knowledge Planet. It is the work of the famous encryption artist Trevor Jones Art on niftygateway on February 25, 2021. The one owned by Jiaolian is open edition #2043.
Friends who are familiar with Western art should be able to see that his work is obviously imitating and paying tribute to the famous Italian sculptor Gianlorenzo Bernini (Gianlorenzo Bernini, 1598.12.7-1680.11.28 in the 17th century) )'s famous sculpture "Ecstasy of Saint Teresa" (Ecstasy of Saint Teresa, also translated as "The Rapture of Saint Teresa". Marble, Cathedral of Our Lady of Victoria, Rome).
Photo: The Altarpiece of St. Teresa, by Bernini
After the 1/1 release of this work, the open edition opened a 7-minute time-limited unlimited auction, and finally sold 4158 pieces. Each fixed price of 777 US dollars. The average transaction price in the secondary market is $2211.73. Jiaolian bought one from the secondary market for $590 during the market trough in mid-2021. The last sale of the same work was a day ago at $301. Using this as marginal pricing, the loss was 49%.
Another case is in early 2021, the last big production of digital artwork narrative before the PFP avatar small picture became popular, Hashmasks. Similarly, Jiaolian bought hashmask #12847 in the secondary market on March 22, 2021 for 1.46 ETH (current price equivalent to 2656 US dollars).
At the moment of writing (2023.4.23), the floor price of the Hashmasks series works on opensea is 0.186 ETH, which is equivalent to 345 U.S. dollars based on the current ETH price of 1858 U.S. dollars, which is less than a fraction of the purchase price, and a loss of 87%.
I won't go into details about other more zero-returned works.
It should be said that this wave of NFT explosion around 2021 is the first major explosion in the history of NFT development. In the last round of 2017-2018 bull market, NFT has just sprouted and formed a standard (ERC-721, etc.). The bull market has increased the purchasing power of the encryption field, attracting creators and harvesters outside the circle to enter the market to collect money.
When ETH rises in the bull market, the rise in NFT pricing relative to ETH multiplied by the rise in ETH constitutes a Davis double-click. This is equivalent to a lever. When a rout occurs, the decline is multiplied by the decline to form a double kill. Leverage amplifies volatility.
Moreover, an NFT priced at 1 ETH may be $2,500 for those who have just entered the market, but for those who hoard coins in a bear market, the cost price may only be $500. This is another layer of invisible leverage.
Leverage creates the illusion of extremely strong purchasing power on the market, and makes people outside the market feel that money comes quickly from people who are stupid.
ETH, which has risen several times, discourages new takers and is unable to undertake it. However, when the currency market is bearish, such as at the beginning of 2022, the decline in the price of ETH will lower the entry threshold for the receivers, thus once again creating a wave of NFT market.
It's really a flashback.
From the end of 2022 to the first quarter of 2023, after the money market bottomed out and rebounded, funds chased after the money market one after another, chasing big pies, mainstream currencies, new hot spots, and even chasing dogecoins and garbage coins. The breath of life that has returned to the NFT market is exhausted.
When the oil ran out, the NFT market collapsed.
* * * Produced by Liu Jiaolian * * *
(Public account: Liu Jiaolian. Knowledge Planet: Reply to "Planet" from the public account)
(Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrency is a very high-risk product, and there is a risk of zeroing at any time. Please participate carefully and be responsible for yourself.)