ValteSat, Mar 20, 2021 8:54 AM
Hot Digest: Catching The Waves Of NFT
As NFTs hit all the charts in the crypto world and became one of the most popular niches, we decided to look through all the significant news and opinions on the topic. From its road to success to the craziest projects it involved in and predictions of digital collectibles’ future from the most experienced people in the crypto community.
The escalation of success
Beincrypto points out that Non Fungible Tokens have been in the center of mainstream attention since the beginning of 2021. Only in the last weeks of February, the sales amount from treading crypto showcases overreached $200 million, with most of the transactions ($144 million) made through NBA Top Shot — the platform created by Dapper Labs in collaboration with NBA. The second popular NFT platform, CryptoPunks made more than a half of its sales (45 million out of $83 million) also in the last week of February. According to the NonFungible.com research, the total value of transactions increased 300% since 2019.
But in 2020 the situation didn’t look that promising, as The Block research states. During the first half of 2020 the market was stagnant and the interest towards digital collectibles was more seasonal. But this year the overall trading volume escalates rapidly and intensely, despite the fact that the amount of unique traders on NFTs platforms isn’t increasing much.
This gaining momentum in the last months attracted the mainstream attention from media houses and notorious celebrities like Lindsey Lochan and LeBron James, says Beincrypto. Tokens got very attractive for the musicians that have been facing difficulties with getting paid for their work and now can have an additional source of income by using those tokens.
More than that, Microsoft partnered with Enjin blockchain to create an NFT-based platform to reward women in science.
The explanation for this coming growth has been given yet in December 2020 by Dailyhoodl. The article named “How DeFi Made NFTs One of the Biggest Buzz Words of 2020” tells that brought up in 2020 DeFi delivered lacking liquidity to the digital collectibles, so tokens became more accessible and affordable. At the same time, it was noted that the success of digital collectibles will depend on Defi, at least in the nearest future. Lots of existing DeFi protocols can explicit digital collectibles for acquiring certain benefits within the ecosystem.
But in March 2021, as CryptoPotato indicates, Google searches for “NFT” started to overtake the queries for “DeFi” and the ubiquitous hysteria associated with them continued to escalate. The search count For Defi peaked between 1st and 6th of January then started to slowly decline and converged with non fungibles by the end of January, by now NFTs search count shows 3 times higher scores than DeFi. CryptoPotato compares this excitement with the upswing of ICO in 2017.
A while before that in the beginning of February, 2021 lots of attention has been focused on the numerous NFT projects showcased during the Ethereum Denver hackathon event. Beincrypto gathered the most interesting and promising ideas related to digital collectibles..
In particular, Masterfile – a new platform that aims for copyright protection using NFT, and its team aspires to enable permission-based tokens to its native Digital Rights Management MFT token. NFTs Room platform that was presented at the conference will designate the accurate prices and other information about NFTs. Another platform is HEATDEX that will spoor the social attention to popular tokens and thus will help the artists to understand what’s trendy in the digital art world.
NFTs conquering the world
But the projects from Ethereum hackathon are far not the only ones to follow the industry.
Last week Coinquora published the announcement of AC Milan football club launching its own Non Fungible Tokens for fans on the Socios.com app following Juventus, Paris Saint-Germain, AS Roma, Atletico de Madrid and others, aside from esports teams. A month before that AC Milan also collaborated with Chiliz, tokenized sport exchange to create $ACM fan token on Sochio. Owing this asset allows fans to access numerous benefits, including VIP rewards, limited promotions, games and competitions.
The same day Cryptonomist revealed that King of Leon became the first musical band to release an album as NFT. It was done in collaboration with the Yellow Heart platform, which right now seems to be a leader among the companies connecting crypto and the music industry. From March,5 when the album was out and until March, 10 when the article in Cryptonomist was published King of Leon raised $2 million. The NFT Yourself album is available for the fans in 3 different versions, each of them including special features, such as perk for the live performances, additional artworks and different song versions. Critics find this experiment significant for the music industry and for the entire cryptocurrency community, especially for the Ethereum network — the base for any digital collectibles.
And just 2 days later the next art-related NFT news appeared in the spotlight. According to Decrypt, a tokenized version of burned out Banksy painting was sold as digital collectible during the auction for 228.69 ETH or $382,336. The actual artwork that shows a fully packed auction house with the trading lot saying “I can’t believe you morons actually buy this shit” was already sold out in 2006 and repurchased earlier this year by the group of blockchain investors from DeFi projects Injective Protocol and SuperFarm. They literally put the artwork on fire and shared the video of this vandalism act via the Internet. But before that NFT copy was made. This event makes it obvious that the new digital era for art has begun. And even the paintings are not tangible; they still exist in some block of the Ethereum blockchain.
And here comes the name of Beeple — digital artist from the US that just recently sold the world's most expensive NFT EVERYDAYDAYS: THE FIRST 5000 DAYS for $69,3 million. The collage of all the digital artworks Beeple was posting online every day since 2007 became the third most expensive artwork ever sold by the living artist. Thron Ceo Justin Sun was close to buying it, but was outbid by the owner of a major NFT fund Metapurse in the last 30 seconds. Even though many people doubt the reasonability of spending millions dollars on JPG-file, crypto enthusiasts just point that it’s no difference with the art market in general.
And as Cryptopotato informed on March, 14 DC comic, one of the most famous American comic book companies also didn’t miss the hyping topic and launched its own NFT collection in a partnership with Veve, the startup committed to production of NFTs. As announced, the company is going to establish 4 black and white digital Batman statues. Each collectible has a limited amount of copies and different prices, according to its rarity. The price for the digital figure of Nightwin reaches $89,99 and it is the most costly one, having 1850 copies. Right now the total price of all the collectibles is almost $1 million, but very possible it will increase.
As Cryptopotato reasonably mentions, it’s quite understandable DC wants “its peace of the pie”, not only because of NFTs rapidly hitting popularity rates, but also being unhappy with the former DC comic artist Jose Delbo who earned around $200,000 by selling the collection of Batman themed tokens. Now the company strictly prohibits anyone to create the tokenized collectibles with its characters.
Just one day before this Coinquora published the Atari announcement, saying that the gaming pioneer company partnering with Bondly to produce NFTs for the Atari Metaverse — the latest and very awaited gaming project that will use cryptocurrencies and digital collectibles. As CEO of Bondly, Brandon Smith says, the creators of the Atari Metaverse platform will be able to mint their own non-fungibles and spare them between users, so they can use the collectibles to access new features of the game, but also to trade them. It can be purchased using Atari native token (ATRI), Bondly’s native token (BONDLY) or other “major crypto assets”. More specific information about collectibles is to be announced in the coming weeks.
But it’s not all the spheres where discussed tokens were spotted recently. Twitter CEO Jack Dorsey put up the first ever made tweet for sale as digital collectible on the Valuables, the initiative by Cent that allows users to mint and trade tweets as NFTs. The seller gets 95% of the sale proceeds and 5% is the platform commission. According to Coinquora, Dorsey already received numerous bids from many names, including Thron CEO Justin Sun, but the highest for now is a $2,500,000 bid made by Bridge Oracle CEO Sina Estavi. Whatever Jack Dorsey will get from the deal that is going to be closed on March 21, will be converted in BTC and donated for the African charity project GiveDirectly.
According to Decrypt.co article published on March, 13, NFTs can cause some kind of revolution in the tennis industry as well. Oleksandra Oliynikova, 20 is a professional tennis player, ranked 30 in the International Tennis Federation (ITF) World Tour minted her first and last as she says NFT — 6 x 3 inches part of her right arm just above the elbow. In tennis this section of the body is considered as advertising space, because it becomes visible every time the player raises the arm to take a shot, and is shown on the main screens during any tournament. The winning bidder can leave this place blank or select any tattoo or body art to be placed there and also resell the token. This will make a history in tennis, but also will give the opportunity for the fans to support the player and at the same time to participate in his or her career.
And of course, Elon Musk couldn’t stay out of new crypto trends. Beincrypto reported that Ceo of Tesla and the founder of SpaceX announced on his Twitter the sale of his first non-fungible token, which is an electronic “Song about NFT”. It appeared on the Valuables platform and after just a few hours attracted the highest bid of 625 ETH (over $1.1 million fiat), which is made by Sina Estavi, who also made the highest bid for Jack Dorsey first ever tweet. Beeple in a tweet that seems to be a joke offered $69 million for the song (the price his own collectible was sold for).
It seems like all the NFTs rage won’t just stop unnoticed for the world, especially if we talk about gaming and digital art.
The first example is brought up by Cryptonomist: becoming more and more popular Decentraland, a blockchain based game, where you can buy and sell virtual pieces of land (called LAND). Each LAND is a non-fungible token and has specific characteristics, never repeated again, such as size, design, etc. To add more, the tokens can carry the game scores records and then be used to publish this data or to transfer it in another game. Or to create unique items for usage in different platforms or to guarantee the rewards for the holders depending on how rare is each item. None of this was possible before NFT implementation. And even though those tokens are still not easy to use for everyone, “it is very likely that this technology will develop a lot over time”, says Cryptonomist.
Dailycoin supports the same idea, explaining that NFTs can grant users a more deep and interactive gaming experience, so they can practically own the game items and gain the income by applying their efforts for finding or creating valuable commodities. And as the portal says, we can expect quite rapid mass adoption. Also as more games will be based on VR, players will feel more attached to their belongings in the virtual world and digital collectibles will be extremely useful for defining authors and owners of the items.
Dailycoin also announced the launch of a few new NFT games. First one is Aavegotchi by Pixelcraft Studios inspired by classical 90s Tamagotchi; it allows players to stake NFTs avatars with Interest Generating aTokens and interact with the Aavegotchi metaverse. The game went live on March 2.
The other game is Cometh – DeFi-powered project, where users can generate tokens from the asteroids and meanwhile explore the Galaxy (virtual one). The asteroids in the gameplay – are smart contracts with possibility to contain any type of a token, including ERC20 and non-fungible tokens.
Both games attracted lots of interest for players as they allow them to create real wealth, instead of achieving some virtual rewards that will only stay in a specific system.
DJ and music producer 3Lau, who recently tokenized his album and earned over $11 million and in his interview to The Block Crypto voiced his thoughts on the topic, saying that non fungibles allow musicians to interact directly with the public and not to lose the money that go to the middlemen (labels and managing companies). He also pointed on the difference between ICO and NFTs.
“The difference between this and what happened with the ICO boom in 2017: back then, people were buying ideas that could barely be delivered upon. Now people are buying things that give them emotions."
Rubben Merre in his article for Cryptoslate distinguished 3 reasons why it’s good to “ride the NFT wave”. First, each token is unique and authentic and thanks to blockchain any tries for counterfeiting will be clamped down and the authenticity of every token can be proved. The second is the ownership as the tokens can be only transacted or transferred by the owner. When it comes to gaming, the players will be able to use their tokenized assets on multiple platforms because now they not the company will own the items. And the third reason is transferability, which is related to NFTs being decentralized, so users can perform peer-to-peer interaction, trading and dive into marketplaces without unnecessary third-parties. Rubben Merre also thinks that digital collectibles got more chances for encouraging mass adoption much faster than cryptocurrencies did so far, because it’s more related to humans’ habit to collect things and to the desire for entertainment. And this will make it easier for the beginners to understand the advantages of decentralization.
Minting Youtube videos as NFT can become a new future as Altcoinbuzz informed that Justin Kan, the millionaire startup expert and co-founder of Twitch mint his Youtube videos as digital collectibles and put them for sale, naming the collection “Certified Justin Kan Stories” that now can be purchased through OpenSea. Buying them would mean getting an autographed version of the video from the collection. Video will still be on youtube and the user will get a digitally signed certificate for it. Also Kan is considering creating “something special” in the future for the fans having the tokens.
As Cointelegraph reports, despite the hype around NFTs, Kosala Hemachandra, founder of MyEtherWallet is sure that the situation will calm soon. He also has no doubt that the concept has a big potential and will develop into “bigger and broader use cases”. And it will get really valuable when it will help to avoid legal actions.
Concluding all the news, we can see that by now NFTs have grown incredibly since 2017 and include a variety of assets: virtual collectibles, game items, digital artworks, event tickets, real estate, and technology. They have a great potential for further development and we will keep monitoring the situation and keep you updated!