Community culture or drumming to pass flowers? Talking about the development prospect of head portrait NFT

As time goes into 2022, the rotation of hot spots in the encryption market seems to become faster. Under the rapid rotation of hot spots such as GameFi and DAO, in just one week, liquidity and narrative logic have taken a fancy to the cold NFT market, injecting great vitality into it, and a new round of NFT bull market has arrived.

Among them, from the perspective of market performance, the release of the Phanta Bear avatar NFT of Jay Chou's trendy brand PHANTACi is an intuitive manifestation of the coming of the NFT bull market. According to NFTGO data, as of January 9, the market value of Phanta Bear NFT rose rapidly to 40.63 million US dollars within 7 days, and the transaction volume rose to 48.6 million US dollars. In addition to the fiery secondary market, Mint, the whitelist of high-quality avatar-like NFT protocols, has also caused many people to crazily involve in Discord.

In the past 30 days, according to ultrasound data, more than 38,000 ETHs were burned in OpenSea, ranking first, far exceeding the number of ETHs burned through ETH transfers in the second place.

The raging NFT boom has kicked off a new round of Fomo sentiment in the encryption market in 2022, and the entry of stars including Jay Chou and Edison Chen further catalyzed this sentiment. In fact, if we look back at 2021, we will find that its market is after NFT Summer, and the NFT field has been advancing at a steady pace. According to the data provided by Dune [email protected] , after the market reached its climax in August 21, although the trading volume has declined, some NFTs still have good market performance, such as Bored Ape Yacht Club, whose floor price has already More than CryptoPunk.

However, many people are also pouring cold water on avatar-like NFTs—they think that avatar-like NFTs are similar to Meme Tokens, and they are a game of drumming and passing flowers. If there is no next batch of people spending ETH to buy avatar NFTs, the value of avatar-like NFTs will drop instantly. to zero. In essence, avatar-like NFTs, and even all NFTs with collection attributes basically have liquidity problems.

scalability

Celebrities and communities are the support for the liquidity of avatar-like NFTs, including social flaunting, identity tags, and community identity, etc. can all become the value support of avatar-like NFTs. At the same time, the strong scalability of the avatar NFT endows the protocol parties with imagination when conducting community operations.

The Cobo 4th Anniversary NFT gift is a good example. On January 7th, Shenyu said in social media that it will empower the holders of Cobo's 4th anniversary NFT and reach a cooperation with the NFT community X Rabbits Club - Cobo's 4th anniversary NFT holders will receive X Rabbits Club NFT first Mint's whitelist.

In addition to cooperating on the whitelist, avatar NFT protocols with a solid community foundation can also choose to cooperate with other protocols in NFT/FT airdrops, joint names, community activities, etc. In the real world, many NFT holders are also producing related materials to increase the exposure of related NFTs. Of course, the premise of offline material production is that the NFT agreement officially grants the holder the right to use commercially.

Therefore, avatar-like NFTs are a great test of the community's operational capabilities. Good operations will enhance community members' sense of community identity and allow more community members to contribute spontaneously to the community. The improvement of community cohesion will further promote the value of avatar NFT, and outsiders' desire to enter the community will become stronger. This is where community culture comes from.

In addition to the encrypted native avatar NFT protocol, the entry point of many traditional IPs is also the avatar NFT, such as the Phanta Bear NFT and X Rabbits Club NFT of Jay Chou's trendy brand PHANTACi mentioned above.

The advantage of traditional IP lies in the fan community foundation before the NFT release. However, the commercial value corresponding to traditional IP is limited-if the commercial value of IP is squeezed out, the development of the NFT community will stagnate. Its prospects depend on the subjective wishes of the owner of the traditional IP. Fans are more sticky, but they are also more centralized.

Composability and development potential

There is also more interesting room for imagination in terms of the composability and development potential of the avatar-like NFT protocol.

Today, with the vigorous development of DAO infrastructure, the low threshold and strong community cohesion of the avatar-like NFT protocol will make it quickly become part of the DAO infrastructure-the avatar-like NFT can be regarded as POAP (Proof-Of-Attendance Protocol Attendance Proof Protocol) ) in the form of an identity tag as a community entry threshold.

If we expand our horizons further, the avatar-like NFT can also serve as the Avatar incarnation in the metaverse, and become a prerequisite for community members to enter the metaverse. A vast metaverse allows the existence of countless NFT avatar communities, and the collection of communities is the collection of residents of the metaverse.

Cryptomories, an avatar-like NFT protocol, is giving JPG greater value through Metaverse and others. In the Roadmap, CryptoMories officially mentioned that it will be a part of the metaverse game iwwon, and it will play a greater value in the two levels of the game and the metaverse.

The community is committed to giving JPG value, and JPG value feeds back community members, and community members will also become the support of its value while capturing value.

However, what needs to be vigilant is that today, with the vigorous development of NFT, the low threshold of the NFT agreement gives more people the power to publish the NFT agreement. Among them are some people who pretend to be fraudulent—relying on simple NFT issuance and the Fomo sentiment of retail investors in the NFT market to defraud ETH in the hands of retail investors in the market. These agreements often do not have a clear roadmap and are not good at operations, and even the level of the agreement parties is half-baked. The NFTs issued by these agreements often face a broken ending, and the value of low-liquidity NFTs is basically zero.

At the beginning of the release of Rainbow Cats NFT, due to its exquisite art design and the nature of Doodles imitation discs, it aroused the Fomo sentiment in the NFT market. During the Mint process, it once triggered a frenzy in the Gas War and Opensea secondary markets. However, due to technical mistakes in writing the contract, the protocol administrator needs at least 4 ETH in Gas to manually add the whitelist, and the administrator does not want to spend so much ETH to add the whitelist, only adding more than 800 whitelists and then hastily. Laziness eventually caused many whitelist holders to be unable to Mint NFT. In order to restore word of mouth, the administrator opened Mint to the public, and a large number of scientists and retail investors poured in. They succeeded in Mint Rainbow Cats NFT at a low price or for free. This is also the origin of Gas War at that time. Early participants and whitelist holders of the protocol suffered undeserved losses.

Unprofessional teams have a high probability of causing losses to participants. Just like the "DYOR" (Do Your Own Research) that many people in the encryption community like to say, while we are attracted by the exquisite art style, we might as well pay more attention to the professional capabilities of the team behind it and operational capabilities.

Of course, the imagination of NFT is not limited to works of art and collectibles. The overall value of NFT collections is limited by the valuation of Opensea and cannot go further. The community spirit represented by avatar NFT is the embodiment of the spirit of Web3, but this is just an iceberg corner. With the construction of NFT infrastructure, emerging concepts such as NFT lending and NFT Finance will endow the NFT field with more imaginative narrative value, thereby promoting NFT to become the most important part of the encrypted world.