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It may be a good thing to talk about NFT falling to the altar again

In January and April, Jay Chou posted on the social platform Instagram that the NFT he held was stolen and quickly resold.

(Image credit: Instagram)

2. According to the information from OpenSea (currently the world’s largest NFT trading platform) and Ethscan, the NFT was transferred from Jay Chou’s address, and was quickly traded on LooksRare (NFT trading market) at prices of 130ETH (Ethereum) and 155ETH. Hands-on transactions. Based on the last transaction price of 155 ETH, the NFT stolen by Jay Chou is worth about $500,000.

3. In this news, several keywords are involved: NFT, transaction, ETH (Ethereum), price and value. Let’s talk today.

4. Last year (2021) was the year of NFT’s explosion after nearly 10 years of budding and development. In 2021, the usage of NFTs will grow by 110,000%. So at the end of last year I wrote an article “In the Metaverse World, How to Prove You Are You? NFTs. “, explaining in detail what NFT is, let’s review it first.

5. In real life, how do you prove that you are who you are? your stuff belongs to you? Real estate certificates, stock certificates, ID cards, etc., are used to confirm rights. Confirm ownership is yours.

6. And in the digital world, in the Metaverse, how do you prove it? If you buy land and build a house in the digital world, how do you prove they belong to you? Use NFTs. It’s here to “confirm rights”.

7. NFT, called Non-Fungible Token in English and “non-fungible token” in Chinese. Among them, Token, also known as token, token, is the number recorded on the blockchain, which itself has no cost. Because of the technical characteristics of blockchain that cannot be tampered with, Token is especially suitable for representing certain rights and interests to prove that you own an item.

8. As for non-homogenization, what does it mean? For example, the same batch of Maotai leaves the factory is called homogenization, while the Maotai in 2022 and the Maotai in 1980 are called non-homogenization. Non-fungible tokens, which means that each data block of the token has a different value, so that it can be used to distinguish different assets.

9. Therefore, NFT is to allow various assets to be confirmed through blockchain technology and encryption algorithms that cannot be easily tampered with.

10. You may be curious, how does NFT trade?

11. For example, you draw a cartoon with an iPad, upload it to platforms such as OpenSea, and convert it into NFT after passing the blockchain authentication. You are equivalent to getting the title certificate of this comic. Then, you can trade.

12. A video of a star shooting a basketball, a music album, a picture, a paragraph, any of your assets can be made into NFT and traded online.

13. Moreover, NFT can not only confirm rights, but also transfer rights, and record the chain of each transaction.Because of this technical feature, because you know the chain of each transaction, you can choose to sell at one time, transfer the rights, or set rules, for example, let the original creator get 10% of the transaction amount in each future transaction .

14. Therefore, NFT stimulated the enthusiasm of creators and became the first to catch fire in the art circle. Now, NFT is also used to refer to digital assets, digital artworks.

15. Speaking of digital artwork, let’s turn our attention back to the monkey that Jay Chou was stolen from. Is it familiar to you? That’s right, the Bored Ape Yacht Club, or BAYC for short , we talked about earlier. This series is composed of 10,000 boring ape NFT works generated by computer generated by Yuga Labs, an American Web3 company.

16. These 10,000 NFTs were all priced at 0.08 ETH (Ethereum) when they were launched on April 30, 2021, and were sold out within a day. ETH (Ethereum) is an encrypted digital token, and like Bitcoin, it is a virtual currency.

17. Jay Chou holds one of them, number #3738. Also holding this series of NFTs is NBA player Curry. He spent 55 ETH in September last year. At that time, the price of 1 ether was around $3,200, which means that Curry spent about $180,000 to buy one. Music producer Timbaland owns The Boring Ape #590. Many celebrities such as Shawn Yue and Lin Junjie all started the Boring Ape last year. And this series is expensive, the price is above 5000ETH.

18. In the Sotheby’s (auction house) NFT online auction in September 2021, the NFT work “Yuga Labs: 101 Bored Ape Yacht Club” composed of 101 boring apes was hammered down for $21 million, plus a commission of $24.393 million (equivalent to $24.393 million). RMB 157.4 million) was traded.

(Image credit: Sotheby’s)

19. From 0.08 ETH to 150 million, the prices of these 10,000 NFTs are quite different. The huge price fluctuations also made NFTs a myth of investing to make wealth. It seems that just by participating in it, you can make money. But is it really so? Are they really worth it?

20. Recently, the global NFT price has plummeted, fell to the altar, and gradually returned to normal value.

21. For example, a famous NFT collection, the world’s first Twitter tweet sent by Twitter founder Jack Dorsey, in March 2021, Jack Dorsey turned this tweet into an NFT for sale, and sold it. 1630ETH, equivalent to about 2.9 million US dollars at that time. A year later, in March 2022, the buyer wanted to change hands and sell the NFT. He estimated it at US$48 million. As a result, only 7 people participated in the bidding, and the highest bid was 0.09ETH, which was less than US$280. It is the same as the original ex-factory price of 0.08ETH of Boring Monkey. Later, people offered him one after another, and the highest price did not exceed $10,000. But within a year, the price difference is thousands of times.

22. Why is this happening? We have to keep in mind that NFT is only a tool for confirmation of rights, and it cannot solve problems such as copying, piracy, and theft. Moreover, it cannot measure the price and value of digital assets or works of art.

23. Just like artworks and financial assets in real life, prices fluctuate, and everyone has different opinions. In the early days, it may have been fired to a high price because of scarcity, but it does not necessarily represent its true value. What’s more, virtual currencies, such as ether, bitcoin, etc., are required to trade NFTs. The prices of these virtual currencies are unstable, and there is no direct cross-chain transaction between each currency. The stakes are high.

24. It should also be pointed out here that NFT transactions are different domestically and overseas. There are two specific points: First, overseas NFTs can be traded in multiple layers. The new holder can then sell it to the next person.Therefore, the financial attributes of overseas NFTs are very obvious. What everyone looks at is the “financial value” of the artwork, not the “artistic value”. On the other hand, domestic mainstream platforms can only conduct single-layer transactions, not secondary transactions. The second point is that overseas is based on the public chain, and domestic is based on the “consortium chain”. The advantage of overseas is that it is more decentralized. Domestically, it is better to manage.

25. So, what stage has NFT developed to now? What is its future?

26. I drew a picture and marked 5 numbers, which are the 5 stages that a technology will go through. This picture is the Gettler curve I talked about earlier.

27. They are: 1) The budding stage of technology. When a new technology emerges, innovates and attracts attention, some people think that this technology may change the world, so they continue to promote it. 2) Expectation inflation period. Hype will bring price ups and downs until it reaches its peak. Some people call this period a bubble. 3) The trough of the bubble burst . When it reaches the top, everyone can’t catch it, and when it is found that the value of the hype is greater than the actual value, it may collapse in an instant, and then fall all the way to the bottom. 4) Steady climbing recovery period. Bottom does not mean that the technology itself is worthless. When someone seriously researches technology and overcomes problems, this is a recovery period, and it will slowly climb. 5) Production maturity period.Climb when? Until it gets out of the valley and returns to the public eye again, it becomes a truly mature technology. Then, go into production and impact the business world on a larger scale.

28. The current WEB3, NFT, and Metaverse are between stages 1 and 2. After the early scarcity value, NFTs are returning to normal value. In the future, all NFT values ​​will return to the state of “artistic value as the main, financial value as the supplement”.

29. Perhaps, falling off the altar is a good thing for NFT.

30. Why? Because when the speculators gradually leave the market, the real artist can enter.

31. I have always said that in this world, idealists are the first to get up, liars are the fastest, adventurers are the most daring, and leeks are the ones who are most afraid of missing out. Those who can succeed in the end may be Haven’t entered yet.

32. Now is a good start. bless.