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Observation: NFT sinks Xianyu, the "intruder" of traditional trading platforms

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The second-hand trading platform Xianyu and the online shopping retail platform Taobao have also become new interfaces for NFT.

Original source: Blocklike

In Meme Coin Under such exaggerated ups and downs, the mainstream discussion of NFT topics has decreased.

However, if the Meme currency makes more ordinary investors pay attention to digital currency, then the efforts of "breaking the circle" made by NFT are still continuing .

The existence of NFT builds a very creative interface for ordinary netizens to enter the encrypted world, and the influence of this interface is currently expanding.

Blocklike observed that the second-hand trading platform Xianyu and the online shopping retail platform Taobao have also become new interfaces for NFTs. Searching for NFTs on these platforms, you can see Familiar NFT, encrypted art, well-known projects and other products that have been listed for sale.

NFT enters "Xianyu" and "Taobao"

NFT field The myth of wealth creation and celebrity effect is still spreading, and more people are trying to participate in it after they understand the huge potential of digital art. As the demand for purchases increases, NFT is penetrating in various unexpected channels.

Among many communities discussing NFT topics, Xianyu has been dubbed "China's largest NFT trading market".

This name is not groundless. If you search for "NFT" on the Xianyu platform, there are twenty or thirty sellers of the most relevant trading products. The sellers set The keywords also include tags such as "encrypted art", "Opensea", "Cryptopunks", "world's hottest". The same information also appeared in Taobao, and the traditional Internet online shopping platform has become an interesting entrance for a wider range of investors to access NFT products.

According to observation, the products provided by sellers on Xianyu are mainly divided into two categories:

The first category is the direct sale of NFT products. Buyers and sellers directly negotiate original NFT transactions, or discuss the sale of purchased second-hand NFT products. These traders often have a certain understanding of digital assets;< /p>

The second category is mainly purchasing agent and consultation. The buyer entrusts the seller to purchase NFT products on the designated platform, and the seller mainly provides the whole process of agent operation or guidance , in the method of "purchasing on behalf of others", the buyer only needs to provide the relevant link of the NFT product selected in the platform, and other operations can be completed by the purchasing agent. In addition to "purchasing" NFT, there is also "subscription and management" to help buyers put their creations on the chain on the designated platform.

The second category is often aimed at "entry-level" NFT players, and it is also the category with more consultations and transactions. It is worth noting that these sellers are very careful. For those "newcomers" who are new to NFT or encrypted art, sellers will often introduce basic knowledge such as "Bitcoin", "virtual wallet" and "NFT" first, to help buyers first understand Digital currency has a better understanding.

In terms of fees, in addition to the NFT itself purchase (or generation) fees and related Gas fees, most sellers will charge "proxy auction fees" and "handling fee commissions" ” and other expenses. In addition, if the transaction amount or transaction quantity is relatively large, both parties to the transaction will also discuss some preferential methods, such as whether to "include gas fees".

In Xianyu's "Buy" function, you can also see some people who are interested in NFT, directly expressing their trading needs for NFT.

Although the popularity of NFT was once overshadowed by the "zoo", this kind of out-of-circle product based on games or art is still being used by more and more people. Ordinary investors accept.

Some time ago, the topic of "encryption art is going out of the circle" that was hotly discussed in the community has been fermented until now, and it has finally been concretized in "sinking" channels like Xianyu.

NFT: The channel is opening

Some time ago, blockchain entertainment work When analyzing the problems faced by NFT, Mac Ocampo, director of Virtually Human Studio (VHS), pointed out that the obstacle faced by the NFT game industry is that not all gamers are digital currency traders, and not all digital currency traders are digital currency traders. game player.

This point of view is not only applicable to the field of NFT games, but also a problem faced by the entire NFT trading market. Although many platforms are committed to lowering the barriers to entry for users, for people outside the circle, it still takes a lot of time to learn and research the operation process, code knowledge, Token ID and other processes required to purchase digital assets. For some digital currency traders, they may not care about the cultural value of NFT products, and they are only chasing the "wealth effect" caused by the popularity.

In a paper introducing NFT by the traditional art media platform Central Academy of Fine Arts, it is necessary to attach 11 basic terms of the encrypted market for scientific Only by popularizing market education can readers in traditional fields better understand. The threshold for understanding NFT ultimately revolves around the professional knowledge level of the encryption industry.

(CAFA ART INFO.COM added a lot of industry terminology to popularize science when introducing NFT)

Buyers are discouraged by the complexity of the buying process. Some people believe that this drawback is deeply rooted in the bottom layer of the encryption world. For new individual investors, the whole buying experience is not friendly.

According to nonfungible.com data, the average number of NFT sales in the past month is about 110,000, and the monthly sales amounted to 303 million US dollars, but the second-hand transaction volume However, it showed a downward trend, with an average sales volume of 35,626 pieces.

An NFT market research report for the first quarter of 2021 shows that the number of independent addresses from early February to early March shows that the number of buyers exceeds 300 There are only 17 NFT applications for people. Considering that multiple addresses belong to the same buyer, the number of applications with 10 or more real buyers per day is only about 10 to 15. This data shows the current disparity in the development of NFT holding addresses. NFT "out of the circle" is more in the concept than in the holders who actually participate in it.

(data source: nonfungible.com)

However, some platforms are improving the user experience. NFT platforms such as OpenSea and KnownOrigin refer to the interaction methods of traditional online shopping platforms, and add "enter bid" and "buy now" functions next to the artwork.

In addition to platforms such as Xianyu that "passively" start NFT transaction circulation, some large overseas platforms are actively intervening in NFT transactions.

On May 12, Jordan Sweetnam, senior vice president and general manager of the North American market of e-commerce giant eBay, publicly stated that it will allow the sale of digital collectibles NFT on its platform , including digital collectibles such as NFT trading cards, pictures or video clips. eBay will shortly be offering NFT product listings to eBay-compliant sellers. However, according to foreign media information, the NFT currently on sale on eBay is based on the WAX blockchain and can only be paid in US dollars.

Risk and growth

There is no better solution to the status quo of NFT transactions Before the measures were taken, the transaction threshold of NFT seemed to have lost the new investors brought by many celebrity effects. The NFT transaction cases on Xianyu and Taobao tell us that the market demand for NFT transactions may be more than we expected.

But on the other hand, due to the security risks of virtual item transactions, the risk of NFT transactions on platforms such as Xianyu still exists. At present, NFT is still in the development stage. On the one hand, there are opportunities and blue oceans, and on the other hand, there are key technical and security issues that need to be solved.

In a disputed NFT case observed by Blocklike, the buyer complained about the seller's repeated listing of the sold NFT. In another case, a buyer believed he had bought a “pirated” copy of Cryptopunk. In the NFT market, how the platform distinguishes and controls the originality of uploaded works has always been a topic of conservative controversy.

If you want to buy a genuine Cryptopunk, the cheapest price at present is around 15 ETH, but if you go to the NFT trading platform to find more, then a "Almost" high imitation versions may only cost more than a dozen dollars.

An overseas encryption artist and NFT user @Neitherconfirm once said that after entering opensea, even if the JPG is in the auction state or the JPG does not belong to him at all, But users can still change this picture.

To some extent, the "uniqueness" of NFT cannot yet emphasize that the corresponding content must be unique. NFT as a collection Digital certificates and proofs of authenticity, but their usefulness in most real-world situations is debatable. In addition, since most digital works are still stored in off-chain servers, their ownership has also been discussed by the community.

The overseas NFT community has sorted out several suggestions for investors before buying NFT, mainly:

1. Before buying an NFT, check the source of the artwork and consider its authenticity, vulnerability, and time of existence.
2. Verify the NFT, search for its creator, and check if its smart contract already exists on Etherscan.
3. Know in advance the technical or financial risks that NFT may face.
4. If the assets of the NFT are not stored on the blockchain and/or IPFS, it cannot be guaranteed that the buyer truly "owns".
5. If off-chain storage is used, the ownership of NFT is closely related to the project team.

NFT is based on blockchain technology, but the advantages brought by NFT are not absolute. With the rapid spread of NFT's circle-breaking effect, the increase in the number of users and transaction needs may also be ahead, and the NFT trading method is still full of opportunities and challenges.