Did your NFT make money?

News on May 4, according to data from the data website NonFungible cited by the Wall Street Journal, sales of NFTs fell further this week to an average of 19,000 per day, which is a drop of 92% from the 225,000 sales in September last year. Although everyone has already prepared for the bubble in the NFT market, this wave of cooling is still earlier and bigger than expected.

What blocked the pace of NFT's crazy expansion and awakened the reason of "leeks"? Will this wave of cooling affect the country? Will the next market "darling" appear after the NFT crash?

The insurmountable "Red Sea Zone"

I once asked a friend in the industry a question: Why do so many people play in the blockchain? Its essence lies in the public's "profit-seeking" demand. So besides the blockchain, can't others meet the public's "profit-seeking" needs? Yes, or rather difficult.

Some time ago, "Alibaba's market value has evaporated by more than 3 trillion yuan" is still fresh in my memory, and keywords such as "Internet winter", "large factory layoffs", and "Internet bottleneck period" are frequently swiped on the screen. Leaving aside the "internet winter", the fact is that in today's Internet world, it is becoming more and more difficult to innovate. Is the IQ of Chinese people really so unbearable? This is not the case, otherwise, why China has achieved a historic leap from insufficient food and clothing to overall well-off, and towards a comprehensive well-off in just a hundred years. The fundamental reason is that the centralized Internet class is solidified. Large companies control most of the resources and customers, while small companies can only struggle on the line of food and clothing. Even if they have innovations and ideas, they cannot cross the current "red sea area." The most typical of these is the Internet big data + money burning + monopoly model. Take a look at the major apps that are commonly used in your mobile phone. How many of them are not raised like this?

The Internet paradigm is continuously upgraded and iterated, from web1.0, web2.0 to the yearning web3.0. Each iteration is not only an improvement of user experience, but also a reshuffle of the wealth class. We all know that one of the core features of the blockchain is decentralization. Only in this way can the public cross the "Red Sea Zone" and have the opportunity to break down class barriers. People tend to pursue it because of fair opportunities, and the result is another story.

rich man's game

Come back and look at NFT. According to the news on May 2, after Zhu Xiaohu and Cai Wensheng, Lin Jiapeng, the founder of LinkVC, and Zhang Liao, the founding partner of Tongzhou Capital, respectively purchased a Boring Ape NFT and joined the Boring Ape Yacht Club. A few days ago, Li Ning Then announced that they chose to join hands with Boring Ape and launched a variety of joint products...

A piece of "Boring Ape" is valued at 4 billion U.S. dollars, and side B is the loss of 98% of players, and some even reach millions. In the final analysis, ordinary investors are always the ones who get hurt in the end. With the entry of large and professional investors or corporate institutions with a lot of resources, this once "blue ocean" has gradually turned red, and the Matthew effect has become more prominent. More and more ordinary speculators rather than investors realize that they are just leeks and leave the market amid repeated fluctuations, and start looking for the next blue ocean market.

The neglected objective existence

Apart from market reasons, NFT, which was born out of blockchain technology, cannot escape the law of the technology curve after all. Looking at home and abroad, since the NFT market is booming, it has also been lacking in technological innovation. Digital artworks have not been able to make good use of NFT’s certification and traceability functions. Music NFT has not seen any actual progress in the past year, let alone websites, domain names, etc., and in other fields, it has not seen any The application prospect of NFT.

So will this wave of cooling affect the domestic data collection industry? Very small, or almost none. One is the barrier and delay of information at home and abroad; the second is the difference in the nature of NFT at home and abroad. Foreign NFT has strong financial attributes and is a buyer's market, and its price is affected by market supply and demand; domestic Shuzang is a localized improvement of foreign NFTs, which weakens its financial attributes. It is currently a seller's market, and its price is less affected by market fluctuations. Third, this wave of cooling is the epitome of the development of the entire industry. If the domestic data collection continues to move forward, it will eventually lead to the same goal, unless it goes to another fork in the road before this node arrives.

The trend is always changing, the sickle is always new, and the discussions around the trend and hot spots have never stopped. After NFT, there must be the next market "darling" waiting for people to discover. Returning to the present, industry insiders predict: NFT will always exist, and there will be explosions, but 99% of them are garbage. When the top bubble is removed, the entry of professional institutional investors may usher in a more professional and long-span development of the industry, but this will no longer be a game for ordinary players.