[Danslahm Video] Is NFT a scam? What is the essence of the skyrocketing NFT price?
In the 17th century, tulips were very popular with the Dutch upper class. In 1635, a tulip could buy ten cows and even a building, which was the equivalent of a person spending 40 years eating and drinking just for one flower. But by 1637, the price of tulips had plummeted, and a tulip now cost less than a potato.
This was the tulip bubble 500 years ago. Some say NFT is the tulip of the 21st century.
The Bored Ape bought for $2.4 million in NFT is just an ugly monkey. Whether you’re a new or an old one being rug-pulled, there’s always the question of why NFT’s price is so outrageous. So why is NFT so expensive?
Let’s talk about NFT from two aspects: price and value.
The Bored Ape issue price is 0.08ETH and the highest price is 147 ether 1800 times! It was revealed that Bored Ape’s parent company, valued at $4 billion, had revenue of $138 million in 2021. In this way, the Bored Ape is the Monkey King of NFT.
Looking back at the history, we will find that the same is true of Ether Cat in 2018. At that time, this cat was also very expensive, with a transaction price of more than 200 ETH, which is very popular. But later, there are various pet imitation plates, cryptorabbit, Minute cryptodog, and so on. The Ether cat was born at the wrong time, and now NFT is popular, and the Ether cat is on the decline.
Jay Chou, JJ Lin, Stephen Curry, Li Ning, Greenland, and Birelaxed have all spent a lot of money to buy the Bored Ape. Many people have analyzed the reasons for the popularity of the Bored Ape from various aspects such as culture, community, and so on, but their analysis articles fail to see the essence. The most important reason for the success of a Bored Ape is only one, using big money and pull-up the price.
This move in the early period cost is not high. Take goblin for example: Its first day of trading was just over $2 million, even though every deal was stock operating left-handed to right-handed and Openseas’ trading fee with GAS fee adds up the total only $670 thousand, such costs on a third-rate exchange is not enough. But in this case, project floor price steadily increases, and trading volume is also getting more.
It is not difficult to find traders with a very low cost to complete the pull-up and marketing campaign. After the floor price rises, traders make use of the FOMO emotion of the public to make them buy craziness. When you see the demonstration effect of the soaring price, you fall into a frenzy. Then the project party will again stock operating, publicity stunt, and rug-pulled.
In fact, artistic value, community power, application scenarios, and social attributes, are just marketing tools used to confuse the public, all marketing is just foreplay to the sickle of capital. Like tulips in 17th-century Holland, the price of a scarce commodity is inflated by publicity stunts.
If you ask me again is the NFT a bubble?
I’m going to tell you, yes, it’s a bubble, but in fact, bubbles are not that bad, because the tulip bubble brought options innovation to financial markets; while the NFT bubble is inflating, the whole industry will continue to develop and innovate, and if we can follow the trend of the bubble inflating trend before the bubble burst to make a profit, is it not sweeter than the Tulips?
In addition, NFT is not a flower that has no practical effect except good-looking and showing off wealth. Based on the unique irreplaceable characteristics of NFTs, its actual value lies in the application of NFT in GameFi, DeFi, WEB 3.0, DAO, and Metaverse. In short, the future of NFT must no longer be about ugly pictures and publicity stunts, but about artistry, scarcity, and practicality, thus bringing real value to the world.
As we all know, the most afraid of art is fake or piracy, but the cost of counterfeiting is very low. Starting 30 years ago, it has been easy for ordinary manufacturers to replicate a LV bag, and we are not yet talking about the high-tech counterfeiting technology nowadays. But if you want to build a fake NFT, you have to be able to modify the world’s countless computer records in a second. So, the possibility of a fake NFT in the real world is almost zero. This is because of the use of blockchain technology, natural anti-counterfeiting, and security traceability, these can be called perfect.
Anti-counterfeiting is a great application of NFT, fake tickets that appeared in this year’s champions league final, caused many bought tickets for true fans attending, and fans clashed in the admission process and the police, the police used tear gas against the fans. Let’s think about it, if the tickets used the technique of NFT, there could be one less bloodshed.
Similarly, if your boyfriend gives you a LV bag and you don’t know if it’s real or fake. In case the counter won’t do an appraisal for you, or you can take it to a secondhand shop appraisal, but in case it is false… But if LV has a NFT technology, you can scan your phone to see whether it’s real or fake, and counterfeiting is completely impossible. So now it’s easy to disclose those scumbags and in the circumstance, you may give him a bloody incident, let him become an EX.
In addition to anti-counterfeiting, NFT has the application value of confirmation. What is affirmatory authority? The house that you bought can have a house deed and this is affirmatory authority, the meaning is to use the safety that assures oneself rights and interests and truth.
However, the house is a thing in real life, even if your community developer went bankrupt, and did not get the property ownership certificate, the house will not be stolen away. Works of art, however, it is difficult to be like this. The original paintings and novels are easy to copy. But the NFT can solve this problem at low cost, make every painting in the blockchain on the smart contract, just like everyone has a unique identification number, lock the creation and hold relations directly, combining NFT tokens properties and it turns a work of art into a digital asset, and any asset can be traded, do publicity stunts and appreciated. Therefore, NFT plays a very active role in the trade of works of art and copyright protection.
In addition to artwork, NFT can also give a person’s identity, experience, and credit to confirm their rights. Your talents and your reputation can all become assets through NFT, and can even be traded. Through this, you can bridge the real world and the virtual world, which is called the metaverse. The value and application of NFT and all sorts of other things mentioned in the marketing numbers are just a test run. The Metaverse is where NFT comes into its own because NFT is so important to the property rights and social identity of the Metaverse.
NFT and houses and quite the same (if there is no real estate speculation), NFT should be used well, rather than for publicity stunts. If the capital market does not have publicity stunts, the trendiest concept of NFT, it is simply like a priceless treasure, therefore outside the circle of the various style stars enter the harvest, and that’s why a piece of the picture is more expensive than a house happens
The tulip is still the national flower of The Netherlands today. Although some people say that NFT is a scam, it is not the NFT that is deceiving but the scam itself, which could be either NFT or MFT if it can be. The real scam is everyone’s greed and ignorance.
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