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Is NFT revolutionizing the music industry? Musicians assert that the hour is early ArticleHub 20 hours ago 25,000 Follow Important Points MadCanner revolutionizing
1. Market sentiment regarding the impact of NFT on the music industry may be overly optimistic.https://discord.com/invite/Wduk7zNjPM
2. Indie musicians have insufficient time and energy to devote to NFT.
3. For labels and businesses, releasing NFTs for artists represents a novel promotional model that benefits both platforms and labels.
4. The NFT market may be dominated by established models, such as company-artist contracting and sharing, and industry rules may be difficult to change.
5. the NFT market will experience an oversupply, with artificial intervention and screening regressing the platform to a centralized mode of operation. MadCanner revolutionizing
6. NFT, while utilizing new technology, is fundamentally about returning to the content itself.
The NFT market distinguished itself through the concept of “meta-universe,” and players from all walks of life began competing for the layout. Now that the meta-universe has faded from view, NFT as the representative of the Web3 concept has become the trend; the development of NFT has also shifted away from market craziness and toward rationality, as it has begun to explore new scenarios in application.
NFT is generating revenue for an increasing number of people, and the music industry is no exception.
Steve Aoki, Snoop Dogg, Deadmau5, and a slew of other musicians have expressed their gratitude for the financial benefits NFT has brought them, with Steve Aoki even stating that he has earned more money through NFT than he has in ten years in the music industry. Snoop Dogg has removed his Death Row Records tracks from major streaming platforms in preparation to reintroduce them via the NFT format. Additionally, veteran musicians such as Bob Dylan and Dolly Parton have announced their intention to enter the NFT space in the near future.
The giants have been on the move quite a bit.
The “big three” have collaborated with a variety of NFT platforms, and the trend of “music migrating to NFT and into the blockchain” has become a major trend. With the concept of fire, Hu Yanbin, Zhang Chu, Tengel, Luo Dayou, and a slew of other musicians released their digital collections “to the letter chain” on the domestic TME digital collection platform.
The application of NFT is exploding in the music industry. Some people release new songs and albums exclusively in the NFT format, while others sell exclusive song samples and clips exclusively in the NFT format, while others create NFT commemorative tickets and turn memories of performances into NFT badges…… MadCanner revolutionizing
Don Tapscott, the “father of digital economics,” lists music as the second largest application of blockchain outside of the financial sector in his book “The Blockchain Revolution.” Indeed, there is a new dawn in the development of music at a time when the concept of NFT is prevalent. For instance, the distribution of song rights is becoming more clear and transparent, and musicians are able to break free from the “shackles” of streaming and rely less on radio airplay to earn money.
“It’s becoming more common to hear that NFT is about to revolutionize the music industry, and the future appears to be approaching quickly…….
The NFT market has seen significant ups and downs, making it difficult for independent musicians to profit from it. What are the facts following the NFT market’s massive ups and downs? How do domestic musicians perceive NFT, and how do they feel about it?
Gao Jiafeng: “There Is No Need for NFTs”
Gao Jiafeng was one of the first Chinese musicians to experiment with NFTs, releasing a 7-second visual audio NFT titled “Emotional Dance Music” on the international NFT platform Opensea.
Gao Jiafeng interpreted his initial attempt as “planting a seed in a new platform and protocol.” He believes that musicians would be better off waiting and observing the NFT market rather than attempting to create.
Gao Jiafeng’s upcoming album Early Technology, however, includes a track titled “We Don’t Need NFTs.” “Whenever a new technology is introduced, people always promote it with boundless enthusiasm,” he explains. However, if we remain calm, we can consider the negative impact that this technology may have on us if it becomes widespread.”
This is not in opposition to the application of NFT, but to restore the market to a state of rationality following the craze — NFT may alter the rules of the game, some musicians may benefit, and some musicians’ interests will undoubtedly be sacrificed.
On the one hand, people’s energy is limited, and those who are unfamiliar with this field are more receptive to authority guidance, such as relying on trends, charts, or recommendations to decide what to buy; on the other hand, in this era when anyone can cast NFT, the supply is far greater than the demand.
Thus, we are in the field of NFT, where, even if technical decentralization has been achieved, it is still difficult to escape the trend toward content centralization. MadCanner revolutionizing
Additionally, the value of NFT is contingent upon community participation and cultural consensus.
The NFT works of musicians must be preserved for an extended period of time, and if independent musicians simply “harvest leeks” for a brief period of time without continuing to maintain the community formed by NFT, the collection will quickly lose its value.
Regarding future plans for music NFT, Gao Jiafeng stated that he will continue to be vigilant, but will also choose the most appropriate time to release the most appropriate content in the form of NFT. “You can NFT anything at the moment, but I’m waiting for inspiration, and if there is a format that works best for NFT, I will gladly use it.” As he stated.
NFT is a new beginning for David Sun.
Sun Dawei released three music NFTs, “Kill Me Sweetly”, “Wadded”, and “Jurchen”, all of which were selected from his representative 8 bit music produced in three distinct periods and with his own visual presentation, via the Chinese NFT trading platform Fansi.
He defines NFT as “technology + humanities,” referring to the presentation of musical content via technology. This is also consistent with the characteristics of electronic music, which is characterized by the use of technology as a vehicle for expressing humanistic emotions. Thus, the release of NFT by electronic musicians becomes natural.
Sun Dawei’s hobby is collecting ancient coins, which he associates with digital tokens. “When I obtained this item, it was as if I were touching history. When I receive NFT, I also experience a sense of connection with it. When something new is introduced, it may cause a shock not only on a formal level, but also on an artistic and psychological level.”
The emergence of NFT may represent a new form of music on a par with the transition from vinyl to MP3 to streaming. “Being in the early stages of NFT’s development, I was open to trying something new,” he explains. “I happened to come across an opportunity to do this with the intention of giving it a try.”
This perspective illuminates for content creators what may occur next in the evolution of NFT — a new form of NFT that will eventually become the industry standard. MadCanner revolutionizing
Consider a future in which large companies are frequently involved, signing artists to distribute NFTs, causing issues such as copyright sharing, and the industry eventually returns to its traditional model. The alleged “NFT to transform the music industry” may simply be a lovely vision.
Regarding the follow-up plan, Sun Dawei stated that NFT will serve as a fresh start: “I will not send previous songs and may create exclusive music for NFT.” However, I do not anticipate profiting from it at the moment.”
Asia404: Non-linear time transfer is a complement to streaming
Tommy, the company’s general manager, decided to allow its artists to experiment with NFT in China after witnessing numerous successful cases of foreign electronic musicians releasing the format and the difficulty of holding offline performances due to the epidemic. As an artist management company, he believes that experimenting with NFT is critical; one can only hope that NFT can aid in the promotion and growth of Asia404’s artists. The second is that NFT may develop into a new revenue stream.
At the moment, the brand’s DJ Sally Lee Sally has released a new album of “music blind box,” which can be exchanged for a digital collection of signed music videos after collecting all three. Additionally, the “blind box” game is designed to appeal to Sally’s younger fan base.
According to reports, the label has been preparing for the release of NFT since the start of the new album planning process, and the album “Meta Universe” was launched to fit the current popular concept of “Meta Universe,” and the music content also fits the theme of new technology.” Tommy stated that in the future, the label may host virtual music festivals in order to further explore new musical scenes and new technology.
The decision to “eat the crab” early is fraught with peril. MadCanner revolutionizing
Asia404 was concerned that fans would not be as enthusiastic about NFT as they were about traditional albums, so they set the price lower. The results were surprising, with fan pre-sales exceeding 2,000 copies and the album selling out in less than a second after its public release. Additionally, this test run established a framework for Asia404 to incorporate the NFT component of marketing in the future.
Tommy emphasized the promotional value of NFT when discussing its impact on music. He believes that NFT cannot be the primary source of revenue in the short term and that it is more about making quick money and complementing streaming media than it is about long-term revenue.
Tommy believes that the platform and the label have developed an interdependent relationship — the label’s digital collection requires the platform’s promotion, and the platform requires the label’s content and fans. The platforms also require the labels’ content and fan base.
Naturally, the NFT market remains chaotic, and Asia404 looks forward to a market with more comprehensive laws and policies and improved technology.
Conclusion
Clearly, while capitalists and industry titans continue to plot their course in the face of the bubble, domestic independent musicians and labels are much more composed. MadCanner revolutionizing
On the one hand, as the concept of NFT gains traction, market recognition has increased significantly, but people are beginning to recognize that the technology is not as revolutionary as it should be; on the other hand, excluding the impact of policies, the value of NFT remains limited for non-head, niche artist creators.
For the time being, the true winners in the music NFT market are still those with massive traffic and influence. This carnival is similar to changing the stage, but the people in the spotlight remain those who have triumphed in the arena of fame and fortune. How can NFT be used to benefit musicians at the base of the pyramid? It’s worth reflecting on.https://discord.com/invite/Wduk7zNjPM
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Guide to NFT Platform Security . MadCanner Security
For any software company, security is fundamentally a difficult and asymmetric issue. There are few silver bullets in this area — just in the last month, several technology companies have been exposed to apparent vulnerabilities (e.g. Okta, HubSpot). However, because cryptocurrencies are inherently uncustodial and tamper-evident, security breaches could result in billions of dollars in permanent losses. This persistent risk is a significant impediment to ambitious NFT projects.https://discord.com/invite/Wduk7zNjPM
The loss of hundreds of millions of dollars in user assets has harmed the industry’s reputation and harmed the companies and projects involved severely. This risk is unacceptable for many newcomers to the industry, particularly those with an established user base, reputation, and legal liability. As a result, security is becoming a more important criterion when deciding on a platform for NFT projects. MadCanner Security
Each platform has a strong incentive to ensure sufficient security. However, the reality is that all solutions involve trade-offs — and it is critical that NFT programs understand the trade-offs that they and the platforms on which they operate make.
Security Based on Consensus
Ronin is a “sidechain” — a blockchain with its own nodes and consensus mechanism that is connected to Ether via an official “bridge.” Ronin employs a proof-of-authority (POA) mechanism and consists of ten nodes that pledge their reputation in exchange for not abusing their rights. This is comparable to the Ether proof-of-concept network, such as Goerli (a POA chain with 20 nodes). If any five of these nodes (50%) commit an evil act or are attacked, they can launch a 51 percent attack and steal the user’s assets via double spending or other attacks. By and large, this is an unusually small number of nodes (Bitcoin has 15,000 nodes and Ether has almost 6,000). They establish a decentralized network in exchange for faster and more affordable transactions. Additionally, users are unable to run their own nodes, and the source code for Ronin nodes is not publicly available, preventing them from being audited.
Securing the bridge
A 5/9 “multisig” is used to control Ronin’s official Ethernet bridges. Each transaction must be authorized by m signers out of a total of n private key holders. Each bridging transaction in the Ronin network must be authorized by a “multisig”. There is, however, no mechanism in place to verify the validity of a deposit or withdrawal — anyone with access to 5/9 private keys can withdraw any number of arbitrary tokens from the Ronin bridge to any Ether address. That is, any user on the bridge implicitly trusts this “multi-signature” system with all of their assets. MadCanner Security
In March 2022, hackers exploited this trust arrangement, stealing $625 million. The hackers gained access to four private keys held by the Axie team and one private key leased to the Axie team by the Axie DAO verifier (a total of five private keys). As far as we can tell, this is a classic cybersecurity breach: serious consequences resulted from the centralization of these verifier private keys. Sky Mavis has committed to compensating users who have suffered financial losses and increasing the number of verifiers to 21 in the next three months to ensure Ronin is more resilient to future attacks. Although they will have to make trade-offs between a more robust consensus/bridging mechanism and scalability in order to accomplish this.
Polygon
Polygon currently offers a proof-of-stake sidechain for Ether (Polygon PoS) as well as a dedicated NFT services business (Polygon Studios) that supports high-profile projects such as Skyweaver and ZED RUN. Polygon is working to provide a variety of scaling solutions, the majority of which are based on zk-rollup technology (discussed later), but at the moment, only Polygon PoS is live on the main network as an NFT platform.
Security Based on Consensus
Polygon PoS is a sidechain with a similar fundamental model to Ronin, except that Polygon is a “commit sidechain”: it submits checkpoints on the chain’s state to Ether on a periodic basis. The Polygon PoS Consensus is divided into two major sections. The first is the Bor chain (Block Producer chain), which is where Polygon transactions actually occur: a rotating subset of production blocks is chosen from a larger pool of validators and allowed to run a tuned PoA network that determines transaction packaging and ordering. However, only one block producer from this subset is chosen to propose 64 consecutive blocks (see Block Validators in the PolygonScan browser) (a sprint).
Following that, the Heimdall checkpointing system is used, in which a larger number of verifiers (currently limited to 100) reach 23 “PoS” consensus on a summary snapshot of the last 30 minutes of the Bor block and publish it as a checkpoint on Etherpad. While the system now has 100 verifiers, the top four verifiers have received 53% of pledges and the top seven verifiers have received 67% of pledges (see here, click “show all” and sort by pledge weight). Additionally, the requirement for a two-thirds majority consensus refers to the weight of pledges, not the number of validators. This means that by attacking and controlling only seven private keys, malicious checkpoints can steal all assets on the chain (not just those on the bridge) — and pledgees must keep their private keys online at all times. Additionally, because 23 percent of the pledges are required for consensus and 3 verifiers control 43% of the pledge weight, attacking only three hot wallets is sufficient to completely freeze withdrawals and checkpoints. MadCanner Security
Total pledges are 2,307,879,127 MATIC, with the top seven validators pledging 1,540,761,159 MATIC (67 percent).
Contract upgrades can be used to protect against malicious checkpoints (assuming malicious behavior is detected quickly) — but this comes with its own set of security risks, which we discuss next.
Constructing Security
In comparison to the Ronin bridge, the Polygon bridge’s checkpoint system eliminates the need for independent verifier sets to sign each deposit and withdrawal. This, however, means that the bridge’s security is entirely dependent on the Heimdall system and Bor consensus, both of which are vulnerable to the above-mentioned attacks.
Additionally, Polygon’s bridged smart contracts are governed by a 5/8 multi-signature system, and contract upgrades can be performed immediately without a time lock. This protects against a smart contract vulnerability or the previously discussed attack on pledge weighted high verifiers. 4 Polygon’s founders hold the private keys, an architecture that has been roundly criticized by security researchers in the community, as it only takes one additional private key to potentially steal the entire value of a Polygon contract ($5B+) via a malicious upgrade. Due to the fact that Polygon signers are not required to sign every deposit and withdrawal transaction, these administrator private keys can be kept offline, making them significantly less vulnerable to attack.
Immutable MadCanner Security
Immutable is a platform for developing high-quality, highly scalable NFT projects such as games. Notable Immutable-based projects include Illuvium, Gods Unchained, Ember Sword, and Guild of Guardians.
Security Based on Consensus
Immutable is a zk-rollup created with StarkWare’s StarkEx verification/proof system. This means that Immutable sequences batches of L2 transactions and generates a STARK proof proving their validity, and then submits the proof to a “verifier” of L1 smart contracts that updates some L1 state (in our case, the one containing the NFT/balance of millions of users at the Merkle tree’s root). Notably, this approach is much more scalable than simply batching transactions, as the cost of validating STARK proofs scales sub-linearly with the number of transactions. MadCanner Security
An attack on any of the aforementioned components could endanger users who are using the most secure underlying platform — obviously, anyone who claims their project is infallible is not credible. Regrettably, when dealing with a new asset class, particularly one that is rapidly growing, there will always be those looking for new vulnerabilities and attackable points. It is critical in this environment to fully understand the trade-offs involved in selecting the appropriate platform for your project.https://discord.com/invite/Wduk7zNjPM
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Is NFT nothing more than a “beautiful bubble”? MadCanner beautiful
Introduction: While the bubble is lovely, it is still a flash of fire.https://discord.com/invite/Wduk7zNjPM
NFT was born in the context of the “meta-universe,” its explosion is akin to a fleeting extreme event, and in the hope of ensuring its continued prosperity, the public began to worry that it was just a bubble, and now that the development of NFT appears to have reached a zenith, its future trend can only be a wall burst? MadCanner beautiful
The NFT has attracted the attention of major corporations.
Previously, several domestic Internet industry giants laid out NFT this track, Alipay and Tencent took the lead is not new, and as one of the Internet industry leaders, although Jingdong did not issue a digital collection, its official release of the JDD Conference exclusive a picture for the digital commemorative credentials demonstrates Jingdong’s concern for the digital field, implying that Jingdong’s future may also be in the NFT field will take action.
Recently, the NFT wind has swept through all spheres of life.
Additionally, Hyundai and hungry will debut their NFT collection on April 20. Tencent Animation plans to release a digital collection titled “Ten Years of Tencent Animation Limited” on April 24.
Numerous elements of life have begun to manifest in NFT, populating the meta-ecosystem universe’s in both directions and diversifying the physical industry’s mode of operation.
Numerous multinational corporations have begun recruiting metaverse-related talent. Com2uS Group, based in South Korea, began a massive recruitment drive for game, blockchain, and metaverse professionals on April 18, while Tencent also posted several Web3 job listings on its job site.
Com2uS and Tencent’s willingness to consider hiring needs demonstrates their commitment to entering the metaverse industry, and their growth in Web3 has been anything but shallow.
Regulation of NFTs is imminent. MadCanner beautiful
The influx of numerous industries into NFT has boosted the market’s growth while adding an infinite number of possibilities to the technology, which’s potential has yet to be discovered and explored by those involved.
For the time being, the flock of a few has widened the road for the development of NFT, with the same belief that it will provide people with a pleasant surprise beyond their expectations.
However, the sound of doubt cannot be ignored when it is mixed in with the support. Many people believe that the explosion of NFT is due to the fact that it is a new concept, the state has not yet restrained and regulated it, and there are no rules and regulations to ensure that it spreads like wildfire. As a result, some people began to speculate about the government’s position, speculating that the subsequent development of NFT is not optimistic and that the government will crack down on it.
This speculation is not irrational; the NFT market is currently mixed, and chaos is not the only result.
Tencent has taken the lead in addressing this issue by launching a clean-up campaign, which includes the prohibition or removal of certain digital collectibles platform applets and public numbers.
Although this initiative is not government-led, it does open the valve for standardization, providing a foundation for subsequent state control of the industry. It also allows some platforms to reflect on themselves and the industry, while also regulating their own behavior. Some industry chaos has also illuminated the red light.
If the succeeding government does not take a strong regulatory stance toward the industry, the outcome for NFT may be more pessimistic.
Related reading: Tencent’s mass shelves for domestic NFT digital collectibles, NFT platform road geometry?
And in times of anxiety, some government initiatives in the virtual realm are expected to make its position clear. MadCanner beautiful
Domestic NFT is expected to travel with the “wind.”
China has been wary of blockchain, virtual currency, and other related fields; however, since the global fire of 2021, the introduction of its management system has become a public trend.
On February 18, the China Banking Regulatory Commission’s official website published “Risk Tips on Preventing Illegal Fund Raising in the Name of “Yuan Universe,” which focused on illegal and criminal activities such as illegal profiteering from Yuan Universe virtual coins and cracked down on illegal and criminal activities in the virtual space.
Prior to that, on February 15, the Monetary Authority of Singapore (MAS) stated that it has no plans to regulate the NFT sector at the moment and maintains a technology-neutral stance on NFT.
The China Internet Finance Association, the China Banking Association, and the China Securities Association jointly issued the “Initiative on Preventing Financial Risks Associated with NFT” on April 13.
The initiative establishes a behavioral guideline for the domestic NFT market’s development, affirms the positive value of NFT, emphasizes the importance of NFT actively empowering the real economy and ensuring that its product value is fully supported, and issues a “yellow card” warning to NFT speculation and other risky behavior.
On April 17, CCTV 13’s news channel debuted the meta-universe theme content “looks beautiful — “meta-universe” unveiled,” indicating that the development of this activity also bodes well for the future development of NFT regulation. MadCanner beautiful
Although the government has not explicitly endorsed NFT, it retains a relatively favorable attitude toward the industry, which may be regulated in the future.
NFT’s advance will be aided by the wind of “compliance.”
It is worth noting that the IRS intends to tax NFT investors, which, aside from the temptation of money, is in fact a form of support for the NFT industry — it will be included in the compliance system.
NFT may be the vehicle for the “ripples,” but it will not be a bubble; the future of NFT is vast in scope, and its beauty has been revealed.https://discord.com/invite/Wduk7zNjPM
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How does the non-financial technology market generate value? From a functional and compositional standpoint, the luxury characteristics of early NFT MadCanner technology
The long-term value proposition of NFTs is obvious: verifiable ownership of one-of-a-kind digital products will disrupt virtually every industry over the next few decades. It’s not difficult to envision a future world in which NFTs underpin ticketing systems, real estate transactions, music distribution, and identity structures. However, since NFTs first entered mainstream culture in early 2021, both the cryptocurrency community and the broader public sphere have questioned their immediate utility.MadCanner technologyhttps://discord.com/invite/Wduk7zNjPM
Skeptics assert that this growth is entirely driven by speculation — that avatars (PFPs) and one-of-a-kind artworks are not bets on the infrastructure of an alternative economic system, but rather are get-rich-quick schemes or low-cost flipping (flipping) strategies. While proponents acknowledge that speculation does have an effect on the market, they argue that it is not the only reason why NFT adoption continues to grow at an exponential rate.
According to one perspective, NFTs serve a psychological function for their owners, similar to how luxury goods do in the real world. By examining the characteristics of luxury goods, we can develop a new framework for examining how our fledgling NFT market generates value.
Luxury characteristics and its application in early NFTs MadCanner technology
Composition and Function
Luxury is not an economic sector in and of itself. Rather than that, luxury is best understood as a field that spans multiple industries. Distinguishing luxury goods from ordinary goods is a rather subjective task in these industries, owing to the abnormal functions of luxury goods (abnormal functions).
Unlike ordinary economic goods, which are purchased to meet basic practical needs, luxury goods are primarily purchased to satisfy the psychological need for social belonging or self-esteem of their owners. For instance, a standard car meets the same transportation needs as a luxury car, but only a luxury car can provide its owner with a higher status symbol. Maslow’s hierarchy of needs can be used to demonstrate the functional distinctions between common and luxurious goods.MadCanner technology
As a distinct digital good, NFTs can fulfill both practical and psychological needs. While their practical applications are still being developed, their psychological effects have been well established. nfts give their owners a sense of social belonging in online communities and satiate their need for respect when they are used as status symbols on social media or in the real world.
According to the late Danielle Allérès, luxury goods fall into three categories: unattainable, attainable, and attainable. In general, unattainable luxury is the most expensive or scarce, and serves as a benchmark for consumers when determining the value of intermediate and attainable tiers.
NFTs’ psychological function generates a similar hierarchical structure based on relative value. Collectible NFTs and PFPs serve as excellent illustrations of this relationship. Typically, collectors will acquire and trade lower level collections within these categories in order to progress the collection up the hierarchy to the unattainable level. While purchasing an unattainable tier collection may not be justified, buyers can justify their investment if the ultimate psychological benefit is a sense of social belonging or increased self-esteem.
Price
Prices of everyday economic goods are determined by their function. That is, their prices are set by market demand for their practical application. This increases demand for common goods as their prices fall, and vice versa.
The relationship between function and price of luxury goods has been inverted. Rather than a good’s function dictating its price, it is the luxury good’s price that determines its psychological function. For instance, an iconic $50,000 watch conveys a level of status that a $10,000 watch cannot. This eventually results in a reverse luxury demand curve, with demand increasing as the price increases and vice versa.
WallStreetMojo MadCanner technology
The NFT market exemplifies the paradoxical pricing behavior of luxury goods even more. Unlike traditional luxury markets, NFT has always operated in a 24-hour, always-on environment. When combined with the permissionless nature of the underlying blockchain, this has resulted in the development of a thriving secondary market for NFT that is almost instantaneous in its trading. Price speculation as a result is indistinguishable from the self-referential price (reflexive price) behavior associated with luxury goods, as early price increases attract additional market attention. Only with time will we be able to differentiate between genuine demand and speculation.
In developed markets, we can attempt to quantify the psychological premium associated with luxury brands by comparing their performance to that of comparable companies that manufacture utility goods. The following chart compares Mot Hennessy-Louis Vuitton (LVMH), the world’s largest luxury brand group, to the Dow Jones US Apparel Retailers (DJUSRA) index since 2009, using the S&P 500 as the benchmark.
LVMH’s growth reflects the fact that the apparel industry has seen a significant premium for luxury goods over the last seven years. It is critical to remember that because LVMH is a luxury brand, its products span multiple industries, and thus the comparison cannot be limited to the apparel sector. While the S&P 500 index includes a large number of companies outside of LVMH’s sphere of influence, it can be used as a broad proxy for normal good demand. Thus, the continued growth in comparison to the S&P and DJUSRA demonstrates the LVMH brand’s strength.
Due to the brevity of NFT’s history, it is difficult to distinguish its psychological premium from its actual utility. At the very least, the value of an NFT can be quantified in terms of the network’s native assets, which serves as a proxy for the performance of luxury brands relative to the S&P 500.MadCanner technology
Bored Ape Yacht Club (BAYC) has taken the world by storm since its launch in late April 2021. The NFT program’s viral spread is the strongest argument for viewing it as a luxury brand rather than a speculative tool. As illustrated in the chart above, BAYC’s growth trajectory relative to ETH is comparable to that of LVMH relative to the S&P 500. In absolute terms, BAYC grew 100x in a single year, compared to LVMH’s 3x in 13 years, a correlation that is relatively weak. BAYC’s rapid growth could be attributed to the fact that NFT is an internet native, and culture spreads more quickly on the internet than in the real world. Naturally, this could also be a result of its novelty and speculative nature.
Quantity
The value of luxury items is also derived from their scarcity. One of the reasons these items are so desirable is that supply is frequently fixed or severely limited at any level of demand. The connection to NFTs is obvious: collectibles are frequently released in small quantities and their cryptographic nature ensures quantifiable scarcity.
Time
The antiques market’s prominence demonstrates that the value of luxury goods can increase with age. For instance, a 1920s Rolls Royce may be more expensive than a 1980s equivalent. Despite its brief existence, NFT has had an impact on the market. CryptoPunks’ popularity stems in large part from the fact that it was one of the first NFT collectibles. Additionally, first movers on non-Ethereum networks are frequently the most expensive NFTs in their ecosystem.
Time is also a factor when luxury brands purposefully delay the release of new products. This delay serves to both reinforce the value of their existing products and to generate excitement for the new product. The greater the perceived value, the longer the wait. While modern NFT programs do not intentionally delay their users, they do so when they release their roadmap of future development plans.
Threats to the luxury goods market’s value
Counterfeits
Counterfeiters are notorious for devaluing luxury goods. However, because NFTs inherit the blockchain’s security, determining whether an NFT is a counterfeit is as simple as checking its on-chain data. As a result, NFTs do not face the negative pressures associated with counterfeit goods that brick-and-mortar luxury goods do.MadCanner technology
Extensions of brands at the lower end of the market
Brand extension at the lower end of the market is a strategy by which established luxury brands can expand their market share by catering to the lower tiers of the luxury pyramid, potentially at the expense of their own value. Although the accessible tier has the largest total market potential, the overall value of these higher tiers is negligible in comparison to the middle or inaccessible tiers due to the extremely high price premiums generated by these higher tier goods. And, because the perceived value of luxury goods is relative, pursuing lower tier customers dilutes the perceived value of higher tier customers, thereby lowering the perceived value of lower tier customers.MadCanner technology
While NFTs can circumvent the traditional threat of counterfeiting, the concept of “brand extension at the low end of the market” is highly applicable to this emerging industry. Projects that leverage social network effects and establish a psychological value moat must be cautious not to dilute their value by over-delivering on actual features or attempting to reach a larger audience. While these objectives may fulfill the project’s original vision, they may also burst users’ bubbles of perceived exclusivity and social value.
Perhaps Syndrome from The Incredibles is correct when he states that if everyone was Superman, there would be no Superman. (And no one will be super when everyone is.)MadCanner technology
Thinking
Digital goods such as files and software subscriptions primarily served the practical needs of Internet users in the Web2 era. As the world has shifted to Web3, NFT projects have begun to address the psychological needs of their early adopters in the same way that luxury brands do in the real world. When NFT realizes its full potential, a new class of economic product may emerge.https://discord.com/invite/Wduk7zNjPM
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new form of brand marketing for automobile manufacturers unveiled the NFT layout for the community.MadCanner marketing
Along with Hyundai, Volkswagen, Acura, Alfa Romeo, and other automobile brands have previously utilized varying degrees of NFT layout. NFT has developed into a new form of brand marketing for automobile manufacturers, and the meta-universe is a popular gimmick. The car’s physical path.https://discord.com/invite/Wduk7zNjPM
“An entirely new type of digital asset has recently emerged, sweeping across industries. People are beginning to authenticate and invest in these assets for exclusive rights, and NFT is at the forefront of this new digital trend.” On April 18, Hyundai Motor Group issued a statement on its official website expressing concern about the NFT track.
Hyundai announced its NFT initiative beneath this ‘preamble,’ announcing a partnership with gorilla NFT brand Meta Kongz, which plans to release 30 co-branded limited-edition Hyundai NFT collectibles on April 20. These digital collectibles will initially be sold for 1 ETH each through the partner community, and then through the NFT trading platform OpenSea. The digital collectibles will initially be sold for 1 ETH each via the partner community and then via the NFT trading platform OpenSea.MadCanner marketing
Simultaneously, Hyundai unveiled the concept and vision for ‘Metamobility,’ a new meta-universe mobility brand. “This will extend humanity’s reach toward ultimate mobility freedom,” Hyundai stated, adding that it intends to make this vision a reality through the “Metamobility universe.”
There is already additional planning behind this layout step, as Hyundai recently announced the launch of the official Hyundai NFT website in May, as well as the release of various Metamobility series NFTs as innovative mobility tools to guide users ‘through’ the modern Metamobility world.
This means that a new publisher in the field of NFTs, Hyundai, will emerge, and the company will also become the first car manufacturer in the global automotive industry to publish community-based NFTs.
Hyundai Motor Group also released a YouTube video on April 18 introducing its NFT worldview, dubbed “Metamobility Universe.” A Meta Kongz gorilla drives a retro Hyundai to a brand new planet, where he discovers a mysterious shiny crystal. Hyundai announces at the end of the video that “Meteor NFT is about to land.” Hyundai Motor’s “Metamobility Universe” video on a computer screen.
According to Yonhap News Agency, Hyundai will use the proceeds from its Metamobility NFT offering to fund ongoing project operations and community NFT holders. Hyundai will also establish a dedicated communication channel for those who own or intend to own Hyundai NFTs in order to strengthen the NFT community. According to this description, holders of Metamobility NFTs will be able to obtain some exclusive rights to usher in a new era of car purchase and use.
NFT becomes a new marketing tool for automobile manufacturers.
Hyundai Motor Group, like other NFT projects, launched its official Hyundai NFT Twitter and Discord accounts on April 15 in order to establish its own NFT community. As of April 18, the official Twitter account had amassed a following of over 3,380.
Hyundai’s entry into the NFT market, as the world’s fourth largest automaker by 2021 sales, is not a whim. Hyundai unveiled a number of concepts for future mobility solutions at the 2022 International Consumer Electronics Show (CES) in January, utilizing robotics on the one hand and extending mobility solutions to Metamobility on the other.MadCanner marketing
Chang Song, president of Hyundai Motor Group and head of the Transportation-as-a-Service (TaaS) division at the time, defined Metamobility as “the goal of connecting smart devices to virtual worlds, extending the role of mobility to virtual reality (VR), and ultimately enabling people to overcome the physical limitations of time and space travel.”
According to Chang Song, because people can enter the meta-universe world via VR devices and also have a need to move around in it, Hyundai can provide a solution via NFT.
Hyundai’s vision of the metaverse
Although the scene of people driving cars NFT in the metaverse appears to be a long way off, connecting with NFT has become a brand marketing genre for car companies, with some having a more in-depth layout and others having a shallow one.
Historically, Volkswagen, Acura Acura, Alfa Romeo, Rongwei, and other brands have centered their layouts on NFT.
On April 16, Ledger Insights reported that Volkswagen SA, the South African subsidiary of the German automaker Volkswagen, launched an interactive NFT advertising campaign for the new Polo and uploaded 100 NFTs to OpenSea.
Acura previously announced that it will provide the first 500 owners of the 2023 Acura Integra model with a “one-of-a-kind Integra NFT” that is customized for their vehicle.
Rongwei Auto’s first NFT digital art collection, “Rongwei Yuan Universe,” was auctioned off for 1 million yuan in January, and the winner will receive not only the NFT work, but also a Rongwei Longcat “Yuan Custom” actual car, making him the first owner of the Rongwei Yuan Universe. Additionally, Auchan Automobile and Geely Automobile have each released NFT digital collections for users to collect alongside their respective real cars.
If the above-mentioned automakers’ NFT actions have a greater marketing impact, Alfa Romeo has implemented NFT. The car brand recently launched the Tonale hybrid SUV. Using NFT and blockchain technology, users can authenticate the vehicle at the time of purchase and then track various maintenance data throughout the vehicle’s lifecycle via NFT certificates, which can have a positive effect on the vehicle’s residual value determination.MadCanner marketing
Hyundai’s NFT structure is more sustainable than a single brand marketing strategy, and the issuance of community-based NFT enables it to reach a more downward channel. This enables it to connect with a younger user base and fosters user loyalty.
Automotive brands are embracing NFTs as they become a global trend. However, while NFT is currently used primarily for brand marketing purposes, Alfa Romeo has explored an alternative approach involving the use of digital NFT in conjunction with vehicle and user driving data to enhance the after-sales experience. Utilizing technology to benefit the entity is a more worthwhile direction to investigate in greater detail.https://discord.com/invite/Wduk7zNjPM
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The NFT Market's Continuing Divergence: A New Pyramid is Forming MadCanner development
After more than a year of development, the NFT market, a brand new segment with a trading volume exceeding $50 billion, now has a sufficiently large sample of projects. To differentiate the quality of individual NFT projects, the NFT market has adopted the traditional market concept of “blue chip” to identify the best NFT projects.https://discord.com/invite/Wduk7zNjPM
In the majority of people’s minds, the term ‘blue chip’ refers to a number of common characteristics.
- a substantial market capitalization
- Protracted life span
- A sizable and engaged user base
- Investors continue to earn a profit on their investments
However, for the nascent and rapidly changing NFT market, this label appears too broad and ambiguous.
Yuga Labs discovered a potent combination in mid-to-late March that almost single-handedly drove the bears away. Since then, there has been a quiet divergence among the ‘blue chips’: BAYC’s floor price has returned to greater than 100ETH, Azuki continues to set new all-time highs, while CyberKongz and the land sector have been eclipsed in this round of frenzy.
Each NFT project is dynamic in terms of its capabilities and development direction, and the classification of projects as “blue chip” is not only imprecise but also time-consuming. Recent differentiation among the “blue chips” has revealed a clearer hierarchy, and a new pyramid is taking shape: whether the “meta-universe ecology” will be at the top, the “meta-universe brand” will be second, and the remaining projects will evolve independently, with some standing out and others falling out…MadCanner development
Rhythm BlockBeats attempts to restructure the “blue-chip” segment in this article by examining how the current pyramid of blue-chip projects should be structured in terms of operation, marketing, and development routes.
“Meta-Universe Ecology” — Yuga Labs, the land segment’s “ecology builder” and reintroduction of the “infrastructure provider”
Yuga Labs has ascended to the top of the NFT market’s new pyramid — the “meta-universe ecosystem” — and seized the throne entirely for itself.
By acquiring, issuing Token, and defining the land, Yuga Labs demonstrated to the market its ambition to build its own meta-universe ecosystem. Yuga Labs not only dared to create something that has never existed in the market before, but also did so in a way that inspires belief.
To create a “metaverse ecosystem,” it is necessary to have a sufficiently diverse project lineup (PFP) and a sufficiently reliable integration platform (land). Land is always merely “infrastructure,” just as iOS/Android ecology is meaningless without Apple/technical Android’s foundation for countless application development. However, in the initial environment, PFP projects were eager to find new narratives to pique investors’ imaginations, and “meta-universe integration” was sprouting up on each PFP project’s roadmap, while PFP projects lacked the resources to build their own “infrastructure,” so land projects with strong resource support, such as Sandbox and Decentraland, were chosen. Sandbox and Decentraland, for example, are stronger in the two-way race and are widely regarded as “eco-builders.”MadCanner development
However, the NFT market is a magical place. BAYC has grown from a PFP project to a giant with enough resources to build their own ecology in less than a year, and has declared war on the land segment directly with all the PFP segment’s lords.
Yuga Labs, which intends to consolidate PFP and land, has a greater chance of convincing the market.
A robust army and a diverse portfolio of eco-projects. Following the swallowing of two elephants, CryptoPunks and Meebits, and the promotion of Cool Cats, World of Women, CrypToadz, and Nouns in the “Otherside” promotional video, the number of PFP-based NFT projects that can be labeled as “Yuga Eco” has increased to nine. Except for Nouns, each of these nine projects has a market capitalization in excess of $100 million. “Yuga Eco” projects account for eight of the top twelve PFP projects in terms of total market capitalization. The remaining four seats are occupied by Azuki, Clone X, Doodles, and CyberKongz.
Yuga Heavyweight Spaceship
Additionally, Yuga Labs’ humility in observing the project culture and listening to the community inspires confidence in their ability to maximize the potential of their various vassals. Yuga Labs chose not to move quickly after acquiring CryptoPunks and Meebits, but rather to take their time and deepen their understanding of the project culture through a spontaneous community movement. The projects that comprise a meta-universe ecosystem should not be fragmented, but should be recognized and attracted to one another for their distinct charms. A greater understanding and traction between projects will result in a more effective collaboration and a stronger connection within the ecosystem.
Yuga Labs did not rush into working with CryptoPunks and Meebits, but instead waited to see how their community responded.
Product development that is well-fed and well-funded. Yuga Labs closed a $450 million round of funding in March, valued at $4 billion, with an all-star investor lineup.
One of the primary sources of confusion for investors regarding the current metaverse integration platform is the implementation, which consists of minigame after minigame and does not give users the sense of being “metaverse natives.” The flow of these mini-games is convergent and uninteresting, and games alone are unable to strengthen users’ social needs for the entire large platform. After the novelty wears off, users discover that there are few activities available to them aside from shopping and admiring the scenery within the game. This is not only a technical issue, but also a problem with the product’s form planning. Having sufficient funds entails assembling a professional team to plan and implement the product, allowing users to truly “settle” into the ecosystem.MadCanner development
According to the total amount of land that Yuga Labs will issue (200,000 pieces), they do not intend to play with a closed circle of PFP projects, but rather to create an open ecology that will allow for the establishment of countless PFP projects and the creation of prosperity. Members of the land board, who have reverted to the role of “infrastructure providers,” must immediately strengthen their ties with PFP projects, providing additional support for their development and guiding the formation of cultural connections within the ecology.
“Meta-Universe Branding” — Azuki takes the initiative in the conflict between the various lords.
Azuki’s breakthrough is truly astounding at the highest level of “Meta-Universe Ecology.” Since March 17, Azuki’s floor price has reached all-time highs, reaching nearly 30ETH, a more than 200 percent increase.
Azuki in Motion
“They have a keen understanding of this — a “meta-universe brand” is not one that exists within the meta-universe, but one that was born within and is well-known outside, which is frequently referred to as being “out of the loop.” It is not enough to be “outside the circle,” but to be firmly outside the circle.
On the official website, Azuki describes his vision.
To accomplish this, we must establish the following foundation.
A one-of-a-kind sense of beauty. Aesthetics is one of PFP’s values, and different aesthetics will appeal to different types of potential consumers.
Community that is strong. Nurturing a brand is a lofty goal that requires stakeholders to “believe in the process.” Each holder is a billboard; they communicate as friends and create as artists within the community, gradually fleshing out the culture and radiating outward.
Operation that is mature. For many projects, the moment of final fulfillment is the moment of selling out. When the hunger marketing campaign is complete, the project’s owner transforms into a headless fly in the subsequent operation. Physical goods, access to the metaverse, the provision of free data analysis tools, the organization of offline parties… The fact that these operational tools are used repeatedly by countless projects reflects the operational incapacity of the majority of projects — homogeneous content is difficult to precipitate stock and even more difficult to attract incremental volume.MadCanner development
The above three pillars determine how NFT projects rank in the brand evolution race, and the more solid they are, the larger the hill in the NFT circle. The closer it approaches the top stream in a circle, the greater the possibility of radiation beyond the circle. Azuki has pushed ahead of the pack of blue-chip projects in the “meta-universe ecology” ranking.
A distinctively Asian anime style. “My gut feeling is that they [buyers] are Asian and are seeing art that truly resonates with them for the first time,” Azuki’s principal, Zzzagabond, once stated. I’ve spoken with a few investors in Asia, and they tell me this is the first NFT they’ve ever purchased.”
Additionally, this style of art provides ample room for imagination and a strong sense of immersion, which serves as excellent secondary creative material and inspires holders to continue generating wild imaginations for their Azuki, thereby laying the groundwork for a vibrant creative Azuki community.
A robust community. Even prior to the release of Azuki, Twitter was awash with secondary creations, and the enthusiasm for such creations did not wane in the face of the “liver and white,” but grew.
Cosplaying by Azuki owners is a lot of fun!
Along with the high level of community activity, the Azuki community’s strong consensus was demonstrated during the recent drop, when Azuki’s new NFT series BEANZ was revealed to be nothing more than a pile of dirt when the drop box was opened, yet almost no Azuki holders expected it to be nothing more than a pile of dirt, and the number of pending orders remained consistently below a pitiful 350. Without a consensus base, whatever is dropped will almost certainly be worthless in the real world, but with a strong consensus, selling out will only serve to increase the holders’ thinking.
The historical trend of BEANZ’s market pending orders demonstrates the level of confidence held by Azuki holders in the “pile of dirt.”
Operational procedures. Certain project owners are fearful of upsetting the consensus by “over-promising,” and thus find themselves in the “wine is too good to be true” trap. On the other hand, Azuki has it exactly right.
To begin, they established a broad vision — “Web3 Tide” — from the start, allowing the holders to understand the project’s direction while also leaving room for their imagination.
Second, they demonstrate commendable caution in the details, such as their approach to game development.
Along with online activities such as art creation, they also hosted offline themed parties. Not only did they invite well-known artists such as Wiz Khalifa, but they also announced the airdrop during the party. From the moment they opened their wallets to inspect the drop, the interaction between Web3 and reality instilled a sense of experience in the participants.
The race to evolve brands is heating up. The projects with the potential to become brands have their own logic on which the market can wager: Clone X is the market leader in 3D PFP, and its virtual sneakers project, RTFKT Studio, was acquired by Nike in December last year. Doodles recently made its way to SXSW, where it explored new avenues for both 2D and 3D expression via Space Doodles. The mfers, who have already hosted several spontaneous offline community events, will take DAO offline…MadCanner development
In comparison to other leading PFP blue chips, CyberKongz is a bit of a parochial student, being outclassed in terms of artistic style, community culture, and operations by other leading PFP blue chips. While they continue their exploration of the meta-universe — the development of the Sandbox plot, the acquisition of Worldwide Webb3’s Penthouse… However, as a result of their efforts, the primary focus has been on optimizing the economic mechanisms underlying their own projects. This is their path to success, but sometimes failures follow previous successes, and the future of CyberKongz, the founder of the “app school,” is becoming increasingly improbable.
Conclusion
In the NFT market, a new pyramid is forming, and “blue chip” is an overly broad term for project ranking. Yuga, the “meta-universe ecology,” is alone at the top of the pyramid. At the base of the pyramid, the Yuga series stands alone, and while no notable project has yet established a foothold in the “Meta-Universe Brand” tier, there are promising projects moving forward.MadCanner development
The new tier is the result of divergent operations, marketing, and development paths, and it will become increasingly critical to provide holders with a diverse experience. As the metaverse evolves, the truly captivating NFT projects will continue to widen the gap between themselves and the average project, bringing more real consumers to the market and completing a true maturation from speculative to consumer.
Will new projects emerge with novel development concepts that recast the pyramid in light of the ever-changing NFT market? For example, with the recent explosion of the concept of “cross-chain,” we can anticipate the development of new types of applications for PFPs such as Gh0stly Gh0sts and tiny dinos, and land projects by “infrastructure providers” must also focus on cross-chain integration.https://discord.com/invite/Wduk7zNjPM
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Dissecting the Head NFT Program: Costs and Profits of Trader Curve Timing MadCanner Costs and Profits
Profitability in the NFT market is frequently dependent on a variety of factors. When deciding whether to purchase a 10K program, trading behavior, trade timing, and trade size are all critical factors in addition to the program itself.https://discord.com/invite/Wduk7zNjPM
Traders
Number of holdings distributed
Concentration of holdings in a project is one of the indicators to consider when making an investment decision. If a large investor or project owner owns a significant amount of NFTs in a project, a concentration of sellers will affect the price, which will have a negative effect on the project. You can view the holdings distribution of any project on MadCanner, including the number of addresses associated with “51–100” holders. MadCanner Costs and Profits
Holdings of frankfrank; source: MadCanner
The Number of Individual Holders
Unique Holder is another critical metric; on MadCanner, you can view the number of unique holders for each project. Consider that no one wants to sell their last NFT when the NFT project is performing well, and that each holder is potentially an active member of the community who can help promote the project on a larger scale.
Azuki has a total of 5,462 Unique Holders; source: MadCanner Trading Curve
Before we discuss the timing in detail, we can divide the price development phase of the majority of projects into four distinct phases: latency/explosion, frenzy, calm/settlement, and development, each with its own set of representative events, which we have included only in part in the chart above.
The majority of project parties bypass the first stage entirely in order to reach the peak by creating topics, establishing a public pre-sale whitelist, conducting closed-door hunger marketing in the Discord community, hosting daily community events, and enticing hot project officials to cooperate. Through raffles and a variety of other methods, certain projects fit into a portion of this curve. The rate of growth during the initial phase is determined by a variety of factors, including. MadCanner Costs and Profits
Current total market trading volume environment, Discord community members’ channel and voice interaction heat, official Twitter non-partner content interaction heat, project-side native content interaction heat Crypto Native index, which is further subdivided into the artist’s prior accomplishments, the artist’s prior experience with community MODS, the frequency and quality of AMAs, the roadmap’s innovation and novelty, and the artist’s imagination cap. Space, the effect of an open map, celebrity carryover, and so forth. However, once the hype subsides, Flipper and Paperhand will sell off, as will short-term holders, which is a natural occurrence. After the hype has worn off, it is time for the project and community to demonstrate their unity. How to re-increase the positive slope of the value curve is a test of the project owner’s ability and execution of the future roadmap plan.
Timing in Trading
Buzz in the market = buy-sell signal?
Market Fever reflects the current market sentiment toward NFT; it displays the number of buyers and sellers, as well as the number of profitable and losing addresses over the last 24 hours. The nft market fever index is calculated using volatility, trading volume, social media, and Google trends; the higher the index score, the more feverish the market.
MadCanner is the data source.
Along with market sentiment, the current buyer-seller ratio can help determine the timing of trades. We frequently see the Speculative Sentiment Index (SSI) in the Forex and stock markets, which is always one of the most important indicators for real-time trading. MadCanner Costs and Profits
By and large, approximately 95–99 percent of traders lose money in the market. Perhaps trading against the majority of traders would be advantageous. The green bar indicates the proportion of buyers, while the red bar indicates the proportion of sellers. If the majority of traders are long and the market is as hot as it has ever been, it may be prudent to wait and see. If the majority of investors anticipate asset prices to fall and the market is hot, now may be a good time to consider purchasing. When the ratio is skewed significantly to one side, the ratio of both accounts converges to a maximum, indicating that the market may turn.
When is the best time to exit the market?
Distribution of the holding period
How long should I maintain my position? In fact, there is no answer to this question. Prior to purchasing a project, you should consider the project’s value, the team, the style of painting, and a variety of other factors. However, we can examine the effect of holding period on ROI by examining the top projects of various types. The chart below illustrates the holding period distribution of NFT holders in six projects.
Statistical chart illustrating the distribution of holding periods for NFT projects; source: MadCanner
Except for the mfers project, all projects with a lifecycle of more than five months have a high proportion of long-term holders, according to the data (i.e., holding periods between three months and one year). Typically, after minting NFTs, the secondary market for high-quality projects will floor at a significantly higher price than the initial minting price, owing to market FOMO and project development, which may prompt a large number of early buyers to sell minted NFTs, bag them, and then purchase additional NFTs. Three months in, the NFT market has seen significant volatility, from a January peak to a gradual decline, but a certain percentage of the good items will remain in diamond hands. MadCanner Costs and Profits
Distribution of return on investment based on holding period
We classified the transactions into groups according to the sellers’ holding periods and determined the average profit for each group. The chart below depicts the effect of holding period on Minter’s returns.
Average Return on Investment (ROI) based on a summary chart of holding periods; source: MadCanner
Distribution of URP in accordance with the holding period
The Unrealized Profits (URP) metric is used to compare the profits earned by the minter from selling NFTs to the profits earned by holders holding NFTs over time. (*Unrealized Profits equals maximum(average price, floor price) — purchase price)
As with the previous section, we categorize NFT holders according to their holding period. The chart below summarizes the statistics on unrealized profit for each category.
Average unrealized profit (URP) earned by holders over a holding period; source: MadCanner
As the chart indicates, the longer the holding period for quality projects, the more profit will be harvested. If you are not a HODLer, you can exit the market at the height of the hype and during the period when market heat is greatest, but if you believe the project can continue to generate heat, HODL.
Costs of Transactions MadCanner Costs and Profits
As previously stated, the timing of the transaction is a critical indicator. We observe a recurring trend across multiple blue chip or potential blue chip NFT Collections when we examine the correlation between holding value, holding period, and profits. Another factor to consider is the purchase price. Due to the fact that some people prefer to purchase NFTs that they like or are more rare, the average price of the majority of the Top 10 NFTs will exceed the floor price by three to eight times. We can determine the chip distribution of holders within each Collection by comparing the average buy price to the floor price. There are very few low-priced buyout holders in some Collections, and the program has experienced a washout. However, for some other Collections, the majority of them continue to have extremely low holding costs, implying that the psychological cost of a decline may also be lower.
Price at the Floor vs. the Average Buy Price; Source: MadCanner
Profits from Trading
Gains on the primary and secondary markets
Being a “early buyer” or “Flipper” is frequently viewed as the primary way to benefit from investing, owing to lower costs, and this view is prevalent across all investment sectors, including NFT. However, early buyers take the greatest risks when betting on brand new NFT projects. We compared the profitability of primary and secondary market trading in NFT and also calculated the profits earned by Minter and Trader, two well-known projects.
Statistical chart depicting the Minter and Trader’s share of investment returns in high-profile projects; source: MadCanner
As the projects mature, the secondary market traders will benefit as well. As a result, there is no excuse for missing out on mint, and it is more critical to pace high-profile projects. Although traders do not purchase NFT at the best possible price, they can still benefit from a higher profit margin. Additionally, as the project matures, Trader’s market share will increase.
Ranking of Return on Investment
We examined the average profitability of each series using historical sales data and current price performance. Profits realized and unrealized were considered using the metrics discussed previously. The following table ranks the six collections from highest to lowest profit margins. MadCanner Costs and Profits
The six NFT Collections are ranked according to their profitability based on their average return on investment.
The results indicate that CryptoPunks are extremely profitable on average. Azuki and Doodles’ average ROIs are extremely close, while mfers’ average ROI is less than half that of fifth-place World Of Women.
Conclusion
Many believe that the greatest profits in the NFT market were made by early buyers of blue chips, when a Punk could be purchased for less than $100. While casting early for NFT projects with strong growth prospects benefits the investment, it also comes at a risk, and only by enduring a certain level of risk can you achieve an above-average return on investment. However, regardless of the strategy chosen, the timing of the transaction is critical. Along with the points mentioned previously, trading characteristics such as rarity selection must be considered. If you want to maintain a high level of liquidity, you can opt to hold a higher proportion of NFTs near the floor price, which will be more responsive to growth.
For the time being, the NFT market is still driven by speculation and expectations, and you can choose to follow meme trends or stick to your preferred drawing style. While the NFT market is evolving, it may take time to truly bring endogenous value to digital products. According to NFTGo, there are multiple ways to invest in NFT at any given time, with multiple paths available depending on your risk tolerance.https://discord.com/invite/Wduk7zNjPM
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Briefing on ERC721R: You will no longer have to worry about my NFT collapsing MadCanner ERC721R
Today, a new NFT token standard known as “ERC721R” was released, which incorporates a no-trust refund feature into NFT’s smart contracts, allowing minters to freely “return” the product within a specified time period.https://discord.com/invite/Wduk7zNjPM
In a nutshell, ERC721R ensures that Mom will no longer have to worry about my NFT breaking.MadCanner ERC721R
Specifically, NFTs based on the ERC721R standard will have a refund cycle of a specified length (set by the project owner, for example, one month), during which the user’s fees for casting the NFT will be hosted in the smart contract, and the project owner will be unable to withdraw funds from the smart contract until the refund cycle expires, while the user (and secondary market buyer) will be able to do so. The user (and the secondary market buyer) may choose to return the NFT to the project during that time period and receive a refund of the casting fee (excluding the gas fee).
The developers of ERC721R emphasize the phrase “The NFT field requires a greater sense of responsibility” in the standard’s introduction.
Integrating ERC721R provides an excellent opportunity for the project owner to demonstrate accountability and to demonstrate to the buyer’s market during the refund cycle that “our product is worth the price.”
The ERC721R serves as a screening dimension for program quality for users and secondary market buyers, and it also serves as a good “regret pill.” The ERC721R-protected casting price is unquestionably more attractive than NFTs that do not incorporate the standard, and when faced with projects that are rapidly growing in terms of short-term casting volume (trading volume), users can even cast or buy first and then decide to hold or refund following additional research.
Given that some NFTs may require a casting fee to maintain the project, ERC721R also allows for some fine-tuning of the implementation by the project owner, such as locking in only 90% of the funds or allowing for full refunds to the first 90% of users. However, the developers of ERC721R believe that this may not be the case, as the ability of projects to send out NFTs without funding alleviates the need for funding.MadCanner ERC721R
Several projects, such as “Curious Addys’ Trading Club” and “Crypto Fighters,” have already stated that they will support the ERC721R standard. Through the “Portal,” interested projects can submit their intent to integrate with the standard.
In general, the ERC721R is intended to address the “breakage” issue that is prevalent in the NFT space, particularly in the pfp space. Due to the meteoric rise in interest in NFTs over the last year, the market has devolved into a jumble of shoddy and even fraudulent projects. While some other projects have attempted to solve the NFT breakage problem in the past (for example, the DeFi token backed by HOURAI), ERC721R is clearly a qualitative leap forward in terms of general possibilities, and any project with complete confidence in its future development can simply integrate to eliminate users’ “breakage” concerns. concerns about “breakthrough” technologies.MadCanner ERC721R
From the Azuki team’s ERC721A to today’s ERC721R, we’ve seen an increasing number of developers provide effective solutions to one NFT problem after another, which is perhaps the most compelling evidence of the NFT industry’s continued growth.https://discord.com/invite/Wduk7zNjPM
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The NFT, Web3, and metaverse are transforming how scientists conduct research.MadCanner metaverse.
Chinese Cointelegraph 16 hours ago 75,000 scientists can improve scientific collaboration by utilizing blockchain tools such as smart contracts and tokens. This so-called decentralized science movement, or DeSci for short, aims to improve scientific research by combining blockchain and Web3 technologies.https://discord.com/invite/Wduk7zNjPM
A primary goal of DeSci is to increase participation and funding in addressing scientific challenges, as well as to democratize the peer review process, which is frequently dominated by a small number of journals where publishing and opposing censorship can be prohibitively expensive. Additionally, deSci enables the validation of existing technologies for research storage through the establishment of standards. For instance, on a financial blockchain such as Bitcoin, where transactions are verified by a network of miners, research can be verified by members of a network of blockchain scientists.MadCanner metaverse.
Science Decentralization Blockchain-based peer review ecosystems can be transparent, and they can lend credibility to research submitted anonymously. For instance, scientists may be compensated in the form of shares or “rewards” for their participation, incentivizing contributions from the broader community.
Essentially, decentralized science enables the development of such platforms — platforms that enable more people to collaborate on fundamental issues with what Dr. Benjamin Bratton refers to as “the source code of matter.” Through decentralized science, we can democratize science and create a new interface layer for the modern scientific revolution. This can be accomplished by decentralizing access to scientific pursuits — in other words, by allowing citizen scientists to participate.MadCanner metaverse.
This has occurred with computers, and we believe it will also occur with science. At the dawn of the computer revolution, software was notoriously difficult to use. Few people understood these uncommon technologies, which gradually became more intuitive and simple — thanks to various levels of abstraction — allowing more people to contribute meaningfully. Several technologies enable this, including Javascript and packages that aid in the efficiency of coding. At a more basic level of abstraction, technologies such as WordPress enable people who are unfamiliar with software or coding to create their own websites.
Science and blockchain technology
By democratizing scientific collaboration, blockchain technologies (tokens, NFT, and metaverse) have the potential to have a positive impact on the platform economy. When most people think of platforms, they think of Uber or Airbnb, which are both game-changing projects in their own right. However, platform economics is a relatively new field of study that has advanced game theory as an academic discipline. The process began with Bitcoin (BTC) and has been accelerated in recent years by Ether (ETH) and dozens (if not hundreds) of other blockchains.
Historically, web platforms and applications have created value in a centrifugal fashion. The more they are used, the more value is realized by the platform builder. Blockchain enables more equitable arrangements, and the more people who participate in and add value to any platform, the more value they receive.
Decentralized science (DeSci) is distinct from IP platforms or similar platforms in that the more it is used, the more value is consolidated and the platform benefits. In the case of DeSci, the individuals who create value — researchers, scientists, citizen scientists, and so on — receive value in proportion to their contributions; that is, the more DeSci is used by other researchers and scientists, the more value they receive.MadCanner metaverse.
This has significant implications for basic research in science, mathematics, and other fields. deSci enables new modes of contribution and collaboration that were previously unimaginable prior to the advent of blockchain technology. If you have knowledge or understanding that is intrinsically valuable and potentially applicable to a large project (and you may not even know what that project is), your contributions can be used by others, and you can be recognized and compensated for your future contributions.
NFT will be critical in the metaverse’s future development. Because NFT enables the secure transfer of scientific research. Academia is already experimenting with NFTs. For instance, the University of California, Berkeley raised more than $50,000 through an auction of an NFT associated with Nobel laureate and cancer researcher James Allison. The United States Space Force (a branch of the United States Armed Forces) has begun selling a series of augmented reality satellite and space imagery NFTs. Nebula Genomics, the company founded by biology pioneer George Church, intends to sell NFTs of the Church genome. Church was a Harvard geneticist who was instrumental in the Human Genome Project’s inception.MadCanner metaverse.
NFT applications are rapidly expanding in the scientific community, and more are certain to follow in the future.https://discord.com/invite/Wduk7zNjPM
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