While it’s true that the NFT market is down significantly from 2021, some collections are still generating millions of dollars. The purification of industry and “use cases” as a focus for carrying out sustainable projects.
September 08, 2022 11:29 a.m.
Someone please tell the Bored Ape Yacht Club that NFTs are dead, because no one is listening.
Most of these best Bored Ape NFTs, the digital art people use to make art galleries or hang on the wall in a frame in their NYC attic, still cost upwards of $120,000. And for some reason Bored Ape #6588 just sold for $1.17 million.
Indeed, even as headlines announce the implosion of NFT in 2022, such obituaries ignore what is really happening. The NFT craze no longer generates teen millionaires every day. With little publicity, investors will have to focus on the actual applications of NFTs, if they can find them.
Despite the weakness in the digital asset market, the average price people paid for an NFT rose 2.5% to $371. Buyers fell 10.3%. Sellers looking to download are down 16%. Total sales are down about 10% to $10 million and they change, according to Non-Fungible Market Tracker.
What happens with NFTs
People find it difficult to sell their expensive NFTs. The Malaysian businessman who bought an NFT of Jack Dorsey’s first tweet for $2.5 million last year struggled to get offers of more than a few hundred dollars when he tried to resell it in April of this year. Maybe buyers have realized that JPEGs aren’t worth millions of dollars.
That’s not to say NFTs are dying, as many of them are needed for gaming or special club memberships, like the Bored Ape Yacht Club. For investors in NFT platforms or digital art itself, means the speculative frenzy is over.
The Hype Around JPG NFTs and Their Million-Dollar Stories overnight, they’ve helped familiarize people with the emerging Web3, thinks Theresia Le Battistini, CEO and founder of Fashion League, a game for budding fashionistas ready to give blockchain away. a shot.
Regardless of the market situation, NFTs are the most exciting improvement in blockchain technology. NFTs are more than just images, he adds, calling them unique digital assets that often have a use case. It could be for ticketing, shopping or gaming apps…I think NFTs will be there and will be the driver for the massive market adoption of Web3, he thinks.
Oren Langberg, CMO of MonkeyLeague, another blockchain game that uses in-game characters that you can buy and sell, says that once the dust settles on the NFT bubble, “we’ll see, and we’re already seeing, NFTs with more real utility and these are the ones that will survive market volatility.
What is an NFT
NFT stands for non-fungible token. As per usual, is built using the same type of programming as cryptocurrencies. An NFT is a digital asset that is almost always a work of art (like Bored Monkey), but can be music, videos, and items for use in games, like magic swords, or other items that these digital characters can use in this online game. world (mostly gamers).
They buy and sell online, often with cryptocurrencies, and are usually coded with the same underlying software as many cryptocurrencies. NFTs are also assumed to be unique and have unique identification codes.
The NFT boom started in 2021. It turned hundreds of artists and influencers into millionaires overnight. As the hype grew, with Tom Brady and Cristiano Ronaldo, famous people started using NFT as a fan engagement tool. Ronaldo sold one last year for $290,000.. Binance, a cryptocurrency exchange, signed him up to join the NFT Factory in June.
Global NFT sales in July 2022 were $647 million with 532,378 unique buyers and 5.6 million transactions. In January 2022, NFT’s worldwide sales were approximately $4.78 billion with 1.07 million unique buyers and corresponding to 9.36 million transactions, led by Loot, Bored Ape and Crypto Punks, the Canadian creators of these pixelated photos that seem to come out of the Atari 2600.
Last year, someone spent nearly $17 million at a Christies auction in a Crypto Punk NFT package. The buyer left without having to carry a photo frame.
NFT Darwinism: Only the Fittest Survive
NFTs are weird security with security. Besides buying digital furniture in a digital world, why would anyone want a collection of Crypto Punks that exists in the cloud, and not a 5×5 painting of them on a canvas that only you own?
Last year, R&B Singer Trey Songz Sells ‘NFT Album’, which allowed subscribers to purchase directly from the rather than the label. Why Songz needed an NFT for this is beyond my intellect, but I would like as a cryptocurrency investor to understand the difference between Songs making an NFT album and him making a website and selling his music directly to the consumer this way rather than through a registry. Label or iTunes?
Gaming seems like the perfect use case for NFTs., and everyone knows that the video game market, whether it’s PlayStation or a blockchain game played by a niche audience, is a growing market. However, this is aimed more at Blockchain Web3 players and not so much at traditional games.
For example, late last year, Electronic Arts CEO Andrew Wilson called NFTs an important part of “the future of our industry”. But on an investor call this winter, cone Madden and video game publisher FIFA told investors that NFTs were “not something we put a lot of effort into.” I liken them to old fashions of venture capital for gamers, like 3D and now virtual reality games.
With each new innovation, many new companies emerge and a frenzy begins., while in bear markets, real builders put their heads down and keep building, says Hosam Mazawi, co-founder of Snook, a game to win Gamefi. There is a lot of uncharted territory in NFT and its use cases. Introducing the first business-related engagement that allows brands or any group of interested stakeholders to host their own brand environment within our platform, he adds.
The gaming industry was the first to see the potential of NFTssays Val Maincard, CEO and Founder of Maincard.io, a fantasy sports management platform that offers NFT cards for guessing fight results in the world’s biggest sports matches. Using NFT as in-game currency gives it the most important quality, which is liquidity. It is the most valuable feature of a long-term product. Do people want it or not? he asks himself.
More uses for NFTs
Some real estate companies have also tried to create digital worlds where they would buy NFT, which could be like the penthouse suite, a cool living room set, and maybe you can host virtual meetings there. It looks like an imaginary market, with the usual potential for massive price increases. If investors surprise the bulls at the right time, they will be on the front line, safe from harm. Catch that lag and you might be dealing with the pointy horns of this raging bull.
The big mistake people make is to equate images of cartoon animals with the underlying promise of the technology that makes NFTs possiblesays Neil Stevenson-Moore, Commercial Director of House of Kibaa in Vancouver. House of Kibaa is the parent brand of Canadian digital agency Looking Glass Labs and is a web3 design studio for the NFT and metaverse industries.
Essentially, all an NFT does is prove ownership of something digital. And in a world where literally everyone is addicted to a digital device in their pocket, it’s crazy to think that this technology isn’t going to be transformative, says Stevenson-Moore. We at House of Kibaa are happy that the first wave of madness has passed. This is how true innovators will begin to emerge, he continues.
Investors who sued NFT games this year they lost almost everything. Enjin Coin and Axie Infinity are down over 80% year-to-date.
The cryptocurrency market loves shocks. Remember everyone loved the death of the initial coin offering because it will make way for serious projects instead of junk coins and scams. The death of the ICO finally Took Bitcoin to nearly $60,000. Will the bloodbath in NFTs end up generating big profits for the best in the business? I will do it. What it is, however, is anyone’s guess.
Twitter, Reddit, and Instagram have announced plans to support NFT for creators. Famed venture capitalist Gary Vaynerchuk launched a collection of NFTs called VEEFRIENDS to give exclusive access to its annual conference.
The realization just means the future looks extremely bright and hopeful for NFTs, thinks Ramkumar Subramaniam, co-founder and CEO of Jump.trade, an NFT marketplace in India. This will create a new community of collectors with a purpose rather than those motivated by short-term profit.
*Note originally published in Forbes USA.