Some friends may have questions, what is the value of the NFT we are exposed to? Are these all bubbles? What is the value of NFT? A complex topic indeed. Today I will mainly introduce to you
I think the easiest way to understand it is to think of them as works of art in real life. The value of a work depends largely on the eyes of the viewer. In other words, its value is different from our analysis of companies or stocks, and is very subjective. If we think about it further, we can understand it from two aspects: perceived value and actual value.
First of all, some people may like a certain NFT work and want to buy it for collection. Then he must be valuable. Of course, the NFT series we just mentioned are not that simple. They also have some social attributes, just like when we buy luxury bags. When a celebrity buys a certain NFT, we will definitely want to follow suit and buy one.
Jimmy Fallon is an example. On November 8, the host of Golden Night Show bought a bayc for a high price of $145,000. A few weeks later, he replaced it with his own Twitter avatar, and his 50 million followers immediately sent the collection’s price soaring. So slowly these NFTs have even become a status symbol. When celebrities use these boring ape NFTs as their avatars, it feels the same as if they were endorsing Rolex or Ferrari. Of course, some friends may be curious, so if I take a screenshot or download their avatar, and then use it as my own avatar, wouldn’t it be okay? So why spend money on it?
This is about what exactly is NFT? The Chinese name of NFT is non-homogeneous proof of rights and interests, and it is a non-standard certificate of artwork copyright, digital artwork, etc. In other words, although they are a virtual string of codes, they can prove that you own the online virtual property rights of the artwork. Using blockchain technology, the virtual property of these digital works can be accurately tracked. These works can be anything from images, audio and video to online game characters. If you still don’t understand, then Gao Ge will explain it to you with a less rigorous example. You can download and print the Mona Lisa. But the real Mona Lisa only exists in the Louvre Museum in Paris. Of course, some people say that the one in the Louvre is fake. The Mona Lisa we printed is obvious to others as soon as they see it. And in trading, only that one is really valuable. In addition, some NFTs have other uses. For example, some can provide games that can make money, and some can convert NFTs into corresponding cryptocurrencies. In this regard, as Gao Ge mentioned before, whether it allows the holder to adopt an NFT dog with characteristics similar to boring apes, or a zombie boring ape that airdrops mutant serum.
Yugalabs has master-level marketing and operation capabilities in this regard. So how will NFT develop in the future? Gao Ge mentioned before that after acquiring major competitors, yugalabs, which rents the three major NFT series, has become the absolute leader. According to a company announcement, the NFT company raised $450 million in funding at a $4 billion valuation. This means that it has grown to a market value of US$4 billion in less than a year. What is the concept? Facebook has always been a representative of Silicon Valley startups, and it took Facebook three years to reach a valuation of almost billions of dollars. In other words, at this stage of the market, Yugalabs is growing faster than Facebook. After financing, he also has a big plan for the future, preparing to use the money to build a media empire around the company. The first step is to announce that he will enter the field of games and metaverse. At the same time, the company also issued its own cryptocurrency last week as the company's main currency.
Speaking of media empires that expand through the acquisition of IP, does it sound a bit familiar? This IP integration development model is actually no different from the Disney we introduced before. Lucasfilm, which has acquired Marvel Entertainment in the past decade, also recently acquired Twenty-First Century Fox. These acquisitions gave Disney control of some of the most popular IPs in entertainment, such as Marvel, Star Wars, and The Simpsons. With all these intellectual property rights, Disney continues to solidify its entertainment empire. Could it be the next Disney? We'll just have to wait and see. Gao Ge will continue to share with you in the next article. Well, I am Gao Ge, an old leek who focuses on digital collections. I share my knowledge just so that you don’t step into any trap.