Scarcity hallucination: Why is NFT not good investment nor a good business?

Author: Nakamoto Anise

Key takeaways:

• The real business model of NFT is not scarce and collection value, but use misleading information to attract a small number of final buyers -that is, to win trust at high prices NFT, and sell other NFTs at the false evaluation price.

• In the past, the “identification price” of others was confused as the “consensus price” of the market, but individual transaction prices were by no means a “market consensus price”.In fact, the real buyers of NFT are limited, and the depth of the NFT market determines that its pricing mechanism cannot be generally considered “consensus pricing”.

• The release of NFT has almost no threshold and cost. This is destined to be an illusion of the so -called “scarcity” of NFT. The same “scarcity” NFT is mass -produced in batches, making it not only scarce, but even too flood.

• The market has already been priced for the scarce and substantial prices of the false scarcity of NFT. The hidden consensus of the market is that the market does not recognize the pricing of NFT, so that NFT only has prices but no buyers.

• Most investors and distribution teams cannot make money from NFT.It is unlikely that investors to buy a lottery NFT, which has a high probability of becoming the “last buyer” of a wrong pricing NFT (even the only real buyer);After NFT’s product form, it is only possible to create a blue chip like Bayc only by relying on strong financial resources and courage.

• The seemingly fair NFT trading market and the data platform are part of the eye -catching method. They use ridiculous statistical data to mislead investors and issuers to evaluate and pricing.

• It is no longer welded with ideas in collecting and scarce narratives, correcting the error recognition of the NFT market, and stopping the wrong resource allocation is the prerequisite for the rejuvenation of the NFT track.

• This article is written in both NFT and not just NFT. There are still many illusion to be removed in the market.

There is a secretive motto in the venture capital world: when everyone swarms to an investment sector, then it is no longer a high -return track.

The profit -seeking behavior will generate a balance -any obvious profitable profit space will be quickly snatched, so that the excessive profits are truly hidden or no one asks, or a thousand years.(So ​​I love traders the opportunity that people can’t understand)

Although this is not an incompetent dogma, it often works in investment and business, so that I have always been confused about the prosperous NFT market two years ago:

Since the release of NFT is a business model that is simple to almost everyone, where does the profit come from?

Since the profit path of NFT has been understood by everyone overnight, NFT has almost stimulated the imagination of everyone to describe the future business map. How can it be called a potential track?

Crowded and growth, low thresholds and high returns are almost impossible to coexist. If they appear at the same time, there must be one fake.

Unable to break through this relationship, it will inevitably lead to the irrationality of profit -seeking and various catastrophic decisions.

This article will work hard to clarify why most of the reality of NFT/Class NFT assets is not as seeing.

Two years have passed, and the market’s awareness of NFT has not improved much. A large number of teams have invested huge costs into a track based on error assumptions.Even if the market was so miserable, there are still teams who are tirelessly on sale of new NFTs. They still look forward to the NFT issued by themselves to squeeze into the blue chip section.As of me, I started writing this article. There are still 30 projects on Cryptoslam waiting for casting, let alone Dongfeng by Bitcoin ecological narrative, and the endless new NFT on the BTC chain.

The heart of profit -seeking can stimulate people’s infinite creativity, but it is more about making people follow the trend and loss of manipulation and misleading.The free market allows people to make free choices, and at the same time allow people to freely create false and be deceived by illusion.

The significance of interpreting the illusion is that we will start learning to protect ourselves, and the market will stop investing resources into the wrong direction.

NFT’s market size

For a long time, the NFT track research report loves to mention the total market value of NFT and describes it as a huge market, especially when it was two years ago (November 2021), it was still a astronomical number of $ 3 trillion; at the same time,In the research report, it also talked about incremental users created for Web 3.0. As of the writing, there are still nearly 5 million independent users in the NFT market, and more than 12.6 million buyers have been accumulated.

Perhaps because human beliefs are fixed, people are willing to find supportive information for the NFT market, and to find support information all over gold, rather than trying to prove that prosperity is not established.

Therefore, no matter whether it was two years ago or only 6.7 billion after the market value was shrinking by 99%, almost no one questioned the calculation method of the NFT market value.

NFT market value = floor price (sometimes the average price)*Total supply; while the total market value of the NFT market is a simple total of all NFT market value.

This formula is used in general securities market valuations, and it is even more ridiculous for the NFT market. It is no less effective than using the national GDP to measure the living standards of each family.

Under normal circumstances, the lower the market value of the circulation, the more prone to the value bubble and valuation deviation.Most of the real circulation of the NFT series is only 1%-2%of the total supply, and the circulation of non-blue chips is lower.The most important thing is that later will explain that because the price of NFT does not come from a full fund game, the reflection of value will be worse.

The ineffective high price and the low circulation rate that no one cares about forms a wealth of paper. It is this kind of unprecedented “accounting method” that makes market participants overdressing the product value and market potential of NFT too much.Prosperous.

The irrationality that ignores the indicators and conclusions is one aspect.The total transaction of currency in Binance is two months.

The stock market is full of all kinds of scammers, only the only exception.

The NFT market is far less large as people envision. When we re -organize all the data we can get, we will find that the only foam that can be called “huge” in this market is its foam.

Merture liquidity: real buyers in the NFT market

I have been thinking about the scale and liquidity of the NFT market in addition to the cumulative transactions.

A scientist friend inspired me.He told me that I had crawled the transaction data of Cryptopunks. After simply sorting, I found that most Punk had never been traded.

This discovery reveals the veil of the liquidity of the NFT market. It leads to a conjecture: Perhaps the reason why the NFT market lacks liquidity is that most NFT does not have real buyers.

In order to verify the conjecture, I climbed the blue -chip data other than Cryptopunks, and some interesting statistical results began to present.Next, I will take Bayc as an example to explain one by one.

As of November 28, 2023,>A total of 36990 Bayc on EtherScan’s transaction history of 8 major NFT Marketplace trading historyIt should be noted that they are not all Bayc’s transfer history, and the former is a subset of the latter.

As shown in the figure, 10,000 Bayc has not been traded once in 36990 trading, 71%of Bayc’s life -long trading is less than 5 times.There are only 4 more than 50 times, and there are no more than 100 transactions for Bayc.

These data have undergone a preliminary cross -examination.

I took out the extreme values ​​of more than 10 transactions and only one and only one time, and compared their corresponding Token ID with the SALES data included in Cryptoslam.

Cryptoslam also captured the data other than the unknown Marketplace other than the above 8 trading markets. When all the transaction history of the Bayc of a certain ID is limited to these 8 Marketplace, the data on both sides are the same;The historical data on both sides of the sample token is the same.

But there are still some errors, such as Bayc#5497.The number of trading times I crawled in EtherScan’s NFT Trade record is 21 times, while the number of transactions included by Cryptoslam is 54 times, of which 21 are the transaction data of Blur and Opensea.Unpopular trading market.

Like Bayc#4970, the number of historical transactions included on Cryptoslam is 17 times, and Etherscan has been arrested 24 times.

In fact, those Bayc on the Cryptoslam activity list concentratedly appeared on the list of Cryptoslam. The coverage rate was almost 100%.If you pay a little attention, you will notice that the list of active in 24 hours, 7 days and 30 days is the same batch of Bayc, and even the ranking has not changed. They are frequently traded on the unnamed exchange, so they are displayed on Cryptoslam.The number of historical transactions is generally higher than that of Etherscan.

No matter what causes this part of BayC to change the hand, as we measure the long -term Byac’s hand -changing distribution, this sudden extreme abnormal value should be excluded.

Therefore, this does not affect the conclusion -99%Bayc has no market (there is no possibility of changing hands) because they do not have a certain size buyer.

Among the remaining 1%, if we see a new independent buyer at a time, only less than 30% -17 Bayc has more than 30 buyers.

In other words, in the past 950 days, the 17 Baycs have only less than 30 people who are willing to buy; and only one of the 10,000 Bayc has received 60 historical buyers.

Such data distribution is also established for other blue -chip NFT.

Some people may ask, since 90%of Bayc has been traded at least once, how can we conclude that NFT has no buyer?

In fact, just checking the sales rate of various NFT series on OpenSea can find the clue. Almost all of the blue-chip NFTs with a circulation of 10,000 are only 1%-2%-that is, 100–200 is sold in the market.

If the NFTs with transaction records are realized, what is the low sales rate as so low?

According to the crawling data, there are 1729 Baycs and only one lifelong transaction records. If these 1729 Bayc are purchased by independent real buyers, how can Bayc be only 200 in the market and hang in the marketSales and circulation — the dealer has the motivation to control the selling rate, but market participants who have profit -making on the purpose have no reason to buy after buying, and let the funds be subject to stagnation.

At this moment, I think everyone should be able to fully understand why the NFT market lacks liquidity.

Llerated than you imagine

We always talk about liquidity, and now it’s time to give it a clear definition.I observe that when people talk about the liquidity of NFT, most of the time refers to both the liquidity of NFT as the asset itself, but also involved the stock funds of this segment.

Asset liquidity is the speed and difficulty of selling assets at a fair market value.Assets with good liquidity can be quickly sold at the current market price without big discounts, and at the same time, they do not need to pay high transaction costs.

The market memory funds refer to the abundant funds in this market, depending on the comparison of the amount of funds and the number of assets, and it is the liquidity of the debt side.

The lack of liquidity in the NFT market is both assets and liabilities.

First of all, because the NFT Marketplace makes the casting and issuance of NFT extremely simple, so that the supply volume of NFT assets is like a virus growth, which can circulate NFT’s increase in the increase in the liquidity of the entire market.

Secondly, the characteristics of intangible homogeneity make each NFT itself a market segment. Even as the PFP of the series of sale, each NFT in the series is in the respective single trading environment, which eventually causes the rightLiquidity division.

The nature of the NFT itself causes fragmentation of liquidity, and the NFT market has always lacks mechanisms to observe the marginal changes in liquidity, which causes the liquidity problem to worsen the snow.In the FT market, once the marginal amount of funds on the venue changes, the price of FT will also change, and the liquidity exit and liquidity of the FT market will inevitably be performed in the price.

However, in the NFT market, the marginal quantity and price of liquidity are isolated from each other. The withdrawal of venue capital funds cannot be directly reflected in the price; and even if there is no incremental funds in the field, it can also push the NFT only by rotating the amount of capital funds.Price, thereby pushing the book market value of the entire NFT market.

When there is no mechanism in the NFT market, and locking the stock funds, it will lead to a false prosperity -although the liquidity in the field is almost left, the price and total market value of NFT can still maintain a high level.

For NFT investors, the lack of buying/trading opponents and the myth of richness created by the survivors’ deviation, the final result is to allow them to be seduced into the field at a high price, and then not only did they not buy the lottery NFT, but they became reduced to become reduced to become the NFT, but they became reduced to become reduced to become a lottery.”The last buyer”.

Consensus pricing fallacy

So, can the price of NFT be believed?

In the past, the price of NFT can be believed, because from a wide range of discussions, both market participants and watches recognize the pricing mechanism of NFT as “consensus pricing”.

Consensus and scarcity are explanations that people find expensive for NFT.

In my opinion, “consensus pricing” is the kind of elegant but vague expression in the crypto market. The wide recognition of such expressions is a typical irrational of the encryption market.

Once you go back to the logical starting point of the “consensus pricing” view, you can easily find that the true meaning of “consensus” here is actually a popularity indicator and group emotional characteristics. They correspond to a hypothesis:

Assuming 1: The issuer of NFT has a high popularity and many fans, and the consensus foundation is naturally wide and strong, because fans of celebrities will flow in enthusiastically, providing liquidity and renewal, so that NFT has value -added potential.

Assuming 2: Different people are looking for a sense of belonging and self -expression, and the group is willing to pay for NFT at high prices to meet their emotional needs.

This is not a consensus pricing, this is a well -known pricing and emotional pricing.

Well -known vacations are easily plunged prices and real chain data -that is, the real market consensus is false.

Taking Jaylen Bear as an example, it once seemed to be “hot” in the market, but in fact, the release ratio of Jaylen Bear is not as good as the high -priced Bayc and PUNK (the release ratio = Issuing number/total transaction times, I am, I am, I am, I am, I am, I am, I am, I am, IUse it to roughly measure the average turnover rate of a series of NFT).

MFER and Azuki, which are popular with “emotional value”, are more sale (even higher than Bayc and Cryptopunks), and their “consensus” is more reliable.I guess that this is related to the user’s positioning. The fans of celebrities are not NFT audiences. The number of celebrities in the NFT audience (still willing to spend money) will not be more long than those who like to grow up, or shouting that bastard lives more.Essence

In other words, turning celebrities and fans into NFT audiences and find celebrity fans from the NFT audience is obviously more difficult than digging the emotional needs of the NFT audience.

However, even if emotional is more popular than well -known, it can inspire people’s willingness to trade, but from the results, it is still not enough to form the so -called “consensus”.

As mentioned earlier, each NFT actually corresponds to a single market segment. If 99%of NFT has only one or two customers for life, and you can’t even find a transaction customer, who will form their consensus?If there are less than 30 historical customers of NFT, is the consensus of 30 people a consensus?

How can we find their own fair prices for tens of thousands of personalized markets?

NFT will confuse someone’s “identification price” as the “consensus price” in the theory of price theory. In fact, the real buyers of NFT are limited. Among the NFTs of their own transactions, 81%of NFT holders have less than 5 opponents.Fang, also includes the dealer’s self -buying and self -selling, the depth of NFT and the frequency of changing the hand, which determines that it cannot have “consensus prices”, and the pricing mechanism is by no means “consensus pricing”.Human speculative pricing.

But this is not entirely the reason for the price of NFT.

Emperor’s new clothes: NFT’s scarcity hallucinations

Another factors to pricing NFT are scarcity, but when we understand the flood of NFT on the asset side, the scarcity narrative of NFT will not be broken.

The NFT business model is born around the narration of scarcity. Its essence is that it is scarce at high prices -a hard -to -moving set of the luxury business model.

I am able to understand the source of this logic. Some scattered market theories in classical economics dominate the way of thinking of the NFT market participants.

Although people do not fully agree with the invisible hands are ideal ways to organize economic activities, they do apply it to the NFT market.

We simply know how the supply and demand determines the price. Without considering the elasticity, the price caused by excess supply causes the price to decline, and the price of supply has increased.

The NFT issuer wants the result of “price rise”, so artificially creates a “shortage”.

The concept of stealing is the first step, claiming that the uniqueness of the non -quality tokens is equal to scarcity; not only that, the issuer will divide the attribute level in a bunch of NFT, making “scarcity” more “scarce”.

But the real demand for NFT has obviously not considered it.

The price is affected by supply but is determined by demand.People’s demand for NFT is nothing more than consumer demand and investment demand. Consumption demand is about cost -effectiveness. NFT obviously cannot support the cost -effective price of high prices, so there is only investment demand.But as a NFT that can be continuously produced, they can have low consumption value, but there is no real scarcity (but never lack of the market) antique collection value.

In the real art market, the price of paintings is also distributed in 28. The works of a few famous artists are worthy of the city, and the works of most painters cannot sell prices.

The strangeness of the market is here. Although the illusion of scarce has been created, the market has not easily bought a large scale.

The data results show that the 100,000 NFTs of each blue chip series cannot be fully traded and sold (in fact, the market for “the most promising” 200 transactions is also quite limited).At present, there is no ruler to measure the real demand for NFT, but the excess supply of NFT is an obvious fact. Although the NFT supply of a series is limited, the total supply of NFT assets in the entire market is excess.

And this exactly shows that NFT’s sky -high myths and trillion market value attracted more are not “buyers”, but the publishers who provide NFT.

But from the final result of most NFTs’ names, most of the issuers obviously have not understood what it has made NFT success.

Who blows the bubble

Due to limited real needs and liquidity, it is not a favorable thing, especially when the investment cost is large.

But how did it be packaged into a trillion -dollar industry full of profit?

2021>, I have sorted out the history of the development of the NFT market and talked about some words about digital scarcity, cultural changes and encrypted culture expression.Now, it seems that the most important gain of writing that article is to discover the reason why NFT has become a business opportunity, which began with the high -priced auction incidents that actively promoted the sensation in 2020 (especially Nifty Gateway and Async Art), andFrom Beeple, PAK, and Cryptopunks were pushed by Christie’s, Sotheby’s Shengtang to a climax.

In other words, the encrypted art market and traditional auction house have improved the popularity and pricing of the NFT market.

• In 2020, Asyncart launched the second month of the launch of $ 344,915 to promote the auction of “First Suppper”. Since then, a single transaction of hundreds of thousands of dollars has begun to appear at high frequency.Nifty Gateway made three curative auctions for Beeple from October to December 2020, with a total transaction price of 258 ETH (at that time worth about $ 180600).

• In December 2020, PAK became the first encrypted artist to earn more than $ 1 million.

• In March 2021, BEEPLE’s “Everydays: The First 5,000 Days (2008–21)” was sold for 69.34 million US dollars. Sotheby’s announced in April that it would hold auction for PAK in April as the first step involved in the NFT field.

• But the most important event is that in February 2021, Cryptopunks 6965 was sold for 800ETH (equivalent to $ 1.5 million), followed by March 11, Cryptopunks#7804, which is equivalent to a high price of $ 7.5 million, so the following month, the following month, the following month, the following month, the following month, the following month, the following month, the following month, the following month(April 8) Christie’s official announcement will be in Christie’sAuction Cryptopunks.

The emergence of PFP and the sharp expansion of the scale of NFT assets opened after this time.

• On April 23, 2021, Bayc started the cast at a price of 0.08 ETH

• On May 3, 2021, MEEBITS started casting

• July 1, 2021, COOL CAT

• July 28, 2021, World of WOMEN

• On September 9, 2021, Cryptoadz

• On October 17, 2021, Doodles was open and cast

• On December 12, 2021, clonex

• January 12, 2022, Azuki

• March 31, 2022, beanz

• April 16, 2022, Moonbirds

The above is the top ten blue -chip PFP issuance time on the entire network.

The myth written by the crypto art market and traditional auction houses to Cryptopunks inspired the most sensitive and most capitalist experience in this market -so Bayc was born.

“Create history from the conditions that people inherit in the past” – -Marx

The bull market is always here -some elements in the random incident are intentionally enlarged, and it has become a narrative and copy -available product that has been passed on.

As the ancestor and founder of PFP, Cryptopunks and Bayc basically set all the subsequent NFT distribution frameworks -Bayc imitates the product structure of Cryptopunks, while other NFT imitates the business model and promotion scenario of Bayc (surface).

Magician’s eye -catching method – -NFT’s price manipulation

Bayc’s founding team was a master -level genius for dimension reduction at that time.

When most people are still ignorant about NFT, Bayc’s team has planned how to use obstacles and people’s cognitive defects to make Bayc the next myth.

What I mentioned before we mentioned, only the dealer had motivated to control the NFT sales rate -the control disk began when casting.

>I crawled Bayc’s 5,000 mint dataIn this sample close to the total amount, I found that 668 independent addresses participated in the casting, of which a address was cast 16%of Bayc (800), 46%of Bayc (2311) concentrated at 20 at 20Under the address.

Moreover, more than 87%of Bayc cast by a single address (more than 4 casting volume is greater than 4).

When Bayc was first released, the number of casters was far less than 1400. We reasonably suspected that it was quite low -key to complete the casting inside the team. In addition, the coinage tax settled the first psychological line for the price of Bayc.The first step of control.

The second step is to create price myths.

From the level of transaction, the biggest difference between NFT and FT is that the price of NFT is simpler.NFT does not need to go through the process of price suppression and recycling chips; and the city merchants can accurately avoid the tokens who are not in their own hands, and only make the Organization in their hands a high -priced label.

The nature and transaction method of NFT are doomed to decide who and who can buy.

If we are involved in the FT or stock securities market, as long as we choose the right target, we will inevitably benefit in the growth (whether it is a capital game or the growth of fundamental improvement), even if there is no mass investor influx in the end, it will also be influx.Get the opportunity to withdraw from the rising to the market.

But NFT is not the case. For general investors, the only way to exit is other popular investors.

The clever place of the Bayc team lies in making “price”.

As we said earlier, FT is no different price. At the same time, the value of one FT is equal to the value of another FT, and the price of FT is a real “consensus price”. It is priced by the real -time game of both buyers and sellers.There is a price support price. In other words, “transaction” can change the price.

But NFT is not like this. The price of the other 9999NFT is determined by 1 as a sky -high price NFT.

This is why they must create price myths, and because of this, a large number of Bayc prices will be empty -the first time it is sold in the market, it reaches the transaction price of hundreds of ETH, or the first transaction price is only 3ETH.The second transaction price suddenly increased by 139 times.

Why is it impossible for prices to vacate naturally?

Because Bayc, who has traded huge trading, has not been sold in the market, and has almost never had records of selling auctions, and the transaction records are directly sold.

Think from another angle, how can a Bayc that has never experienced market pricing, how can you be worth millions of dollars overnight?

The dealers and sellers may be rated for it, but the buyer has no reason to buy a high price of empty prices in terms of consumer motivation and investment motivation.The actual situation is also the same. The number of transactions for sky -high price bay is extremely limited -not no one buys, but no longer listed on the market after one or two sky -high transactions.

Buyers who “take over” are not real buyers.

But does it exist in real buyers?

Existence is only very rare. As mentioned above, the number of real buyers will not exceed the market sales volume.

A few real buyers are people who believe in the possibility of “scarcity narrative” and the possibility of the value -added of NFT. They are those who have not seen the risk, only see the rise, and believe that they can win the lottery —Target crowd.

The enlisted people invest in the psychological psychology of the lottery, but who is the “winning lottery ticket” is specified by the controller.And all their purpose is to sell them at different prices at a high price to ensure that each step price is available, that is, “just sell it”.

The real business model of profit -making NFT is to find a few buyers who believe in narrative after raising the NFT price.

The price of individual BayC prices is huge, the rise of floor prices, and the control of the selling rate are the most important parts of them.

The price of NFT has nothing to do with scarcity, consensus, and internal value. “Rare narrative” has forged a bunch of non -performing assets into gold, just like the past loan crisis – – –

This matter can be done, or because in the NFT trading market, “floor price is raised”, it only needs to hang the selling price higher, rather than the actual value of the actual value or the minimum transaction price increases.

That’s right, the floor price of NFT will not be raised by transactions -the floor price listed by the NFT trading market (at least OpenSea) is the selling price, not the last minimum transaction price.

Take Bayc as an example. On December 1, 2023, Bayc’s floor price on Opensea is 28.8 ETH. The price is the current hanging price of Bayc#8864. OpenSea showsETH, but Cryptosla shows that it was sold at an unknown exchange at a unanimous exchange 8 hours ago at a price of 16.98 US dollars.

Bayc#9196 was sold on a unimparable exchange at a price of 19.9ETH 2 hours ago at a price of 19.9ETH.The price is lower, but OpenSea shows that Bayc’s floor price is 28.8ETH.

Seemingly fair and open NFT distribution platforms and trading markets are the part of price magic.

And they are the biggest winner of this eye -catching method.

Market value maintenance is a horse foot

In addition, we can also prove the scarcity of real buyers of NFT through a phenomenon: Bayc price has not returned to the casting cost line.

In the case of long -term depression, the reasonable development of prices is gradually returning to the cost line.

The first visible cost line of Bayc is the coin price, and the second cost line is 90%of Bayc’s initial transactions (2ETH -000 ETH).Assuming that the casting and the initial sales are all through real buyers, the long -term market has lagged behind, and there can always be significant differences in the market and selling price on the market, but the floor price will return to the cost line.

But in terms of the current situation, Bayc’s floor price at OpenSea on December 1, 2023 is 28.8 ETH, and the lowest price of the casting price is still far from the lowest price of the initial sales.

There must be monsters when things are abnormal.

The reason for the existence is either the cost line of the real buyer of a real market at 0.08 ETH (even less than 20ETH), that is, no market buyer bought Bayc when casting and selling at the initial low price, and thisThe side shows that the floor price is still controlled by the dealer.

Either, it is a very low -cost buyer who still hopes to be small, but unfortunately does not mean that there is no willingness to hang on sale. Bayc’s sales rate in OpenSea is 2%, and the market sales rate is 3.43%, which means that only only onlyMore than 300 Baycs are sold in the market.The price distribution is still manipulated by the dealer. The number of real buyers of Bayc must be lower than the number of hanging sale (343), and there is almost no buyer’s cost line at the coin price.

At this point, we finally understand how the NFT buyers are facing how to carefully weave the Tian Luo Di.com.

But not everyone is like this as the auction house and the Bayc team.

NFT is a market that only has a platform that has only charged the toll.For most participants, participating in this market is almost inaccurate, so for buyers, and to sellers.The sale of NFT is not a business of Wanli — the distribution of NFT is very simple, but to find a buyer for NFT, it is a thing that requires financial resources and courage.The success of Bayc and other blue chips lies in the strong team’s financial resources, and at the same time, they are more proficient in market operation principles. From the beginning, they know how to use obstacles to seduce enrollment, but many people have not understood the market so far.Reappearance of glory.

Conclusion

I have always wanted to write a real NFT market insight, so I have this article.

It is not a new cognition mentioned in the article. They should be blurred in the minds of most people who have participated in the NFT market in most.

However, I think it is still necessary to clarify the error assumptions of NFT in the past market. We cannot prove what NFT is at present, but it can prove that it is not scarce or even too much.Consensus; NFT is a market with extremely limited liquidity and buyers. Most of the NFTs have almost no real buyers. The huge market size comes from the ridiculous formula; the high returns of NFT business are by no means realized.

And those seemingly professional NFT Marketplace, data platforms, including top auction houses, are also a part of eye -catching method. They are willing to deepen people’s wrong understanding of the market and decorate some wrong valuation factors as professional indicators. They have no motivation to have no motivation.Go through this magic.

···

Aware that the failure of the NFT market is equally important -it does not generally improve the overall economic benefits of the encryption industry as expected. What is worse is that it leads to wrong resource allocation. For investors, it is even more for the entrepreneurial team.

The current NFT is neither a good investment nor a good business.We should not go further and further in the wrong direction. If the NFT market itself does not have liquidity, how can we release liquidity through NFTFI?If NFT does not even have real buyers, how can it be used for pawn and liquidation?If the price of the NFT is the air tower, how can the market recognize the market price -based borrowing pledge?

Recognize the situation, lose fantasy, and prepare for the struggle, so the NFT plate has the hope of reshaping.If NFT cannot be priced at scarcity and consensus, then we should start to boldly try a new pricing mechanism; if we realize that a single NFT does not have a transaction depth, when we develop NFTFI, we will start considering the liquidity of rare and scattered polymerization., Will develop new indicators to screen NFTs with real buyers and liquidity for borrowing or pawn, rather than just “blue chips” to regulate life and death.

···

As an anti -anxiety fighter, I also hope to use this as an opportunity to convey a fact -reality is not like what we see. Sky price and huge profits are often packed to seductive lies. If you want to seize a certain opportunity, it is best to be the bestFirst realize how the magician takes the coin from our pocket.

When you fully understand how the profit appears in a fanatic narrative and how to disappear, you may start to be relieved, why “it is always someone else.”

Myths do not exist, and the magician is not a simple occupation. The perfect scam depends on the strong capital.

At the same time, the price scam of the NFT is not a special case, and deception is generally inevitable and inevitable.If we have some weaknesses and there is a way to make us deceive, there will be a deception man secretly waiting for the timing to perform deception.This means that we need to learn to prevent, prevent misleading stories and the focus of gaining our attention, and also means that we will start taking measures to resist the negative side of the market.

We don’t need to ask for an absolutely perfect industry, but we need a relatively healthy ecology, hoping that this is a good start.