The current state of the NFT market: Are ETH NFTs dead?

Author: sleepy.mid , founder of Little Ghost Source: X, @ sleepy0x13

As an NFT entrepreneur, especially since the collection is also issued on ETH, it is inevitable to have a mentality these days will be affected, and at the same time, we have also seen many people discussing whether ETH NFT is dead. So I hope to share some of my opinions and thoughts with you through this article, hoping to help you better participate in the NFT project, and even recharge some faith for you.

Why is ETH NFT bleeding like a river

At present, the current situation of the market does not need to be said. Let’s briefly analyze the reasons.

As we all know, NFT is a small circle, so when Bitcoin skyrocketed and drove NFT projects in the Bitcoin ecosystem to soar all the way, many ETH NFT The player's attention is captured.

The current bull market will make everyone who has not made any money anxious. Sometimes, although they have made some money, they will also feel anxious because they see other people making more money. Too much and feeling anxious.

So it is not difficult to understand why ETH NFT is bleeding like a river.

Funds originally in the ETH NFT pool were transferred to BTC NFT and other currencies, and many people chose to sell ETH NFT to obtain liquidity.

In addition, many farmers who previously mined Blur have also stopped mining. Before this, they were the exit liquidity for many projects. In order to obtain Blur tokens, they would bid for the projects. This allowed the sell-off of many NFTs to not have much impact on the floor price. When they no longer provide exit Without liquidity, it is easy for a large player to sell, causing the floor price to fall by 20% to 30% or even more. When this situation is combined with loan liquidation, it will become even more frightening.

The world is a huge Meme

The next thing I want to talk about is another question , which has also been seen in some communities recently. Many people are asking whether this wave of ETH NFT is a bubble burst or a panic undervaluation.

How to price NFT has always been an unsolvable problem. As far as NFTs currently on the market are concerned, I think there may not yet be a so-called "value currency". Therefore, I do not think that we should follow the traditional thinking model to estimate the price of NFT. Compared with the groundbreaking financial innovations of projects such as UNI and CRV, most NFT projects can provide more emotions.

On this point, NFT is the same as the entire encryption industry. Everyone is speculating on emotions and everyone is making money from emotions. Many times, we often say that the difference between NFT projects and other projects is that NFT projects have extremely sticky communities, and at this point, we can see that the same is true for projects such as PEPE.

In my opinion, whether it is ETH or BTC, or NFT projects on other chains, they are essentially Meme, and the world is a huge one Meme. Otherwise, if we talk about the so-called "value" alone, why Azuki and BAYC can sell for hundreds of thousands of units are just memes. Buying NFT is actually paying for your emotions, and speculating on NFT is actually paying for other people's emotions.

NFT and "sense of gain"

Then we need to talk about NFT belts Give Holder a "sense of gain". I also talked about this issue when I was on the phone with  @freeguyyee  my second uncle two days ago. It was a very important topic that day, but we didn’t come up with a result in the end.

The reason for starting this discussion is because not long ago I saw many people in the community saying that "NFT always punishes diamond players". We think it makes everyone think like this. The reason is that emotional hype will cause the price of NFT to continue to fall back after reaching the highest point for a period of time, and diamond owners do not choose to sell at the high point, but choose to hold it for a long time, but now there are almost no projects that can provide diamonds. The hands provide enough sense of gain.

Frankly speaking, this is where we are currently not doing enough.

It is normal and reasonable to seek more benefits for yourself, so there is no way for us to completely avoid flippers. So, thinking about the solution to this problem from the perspective of the project side, all we can do seems to be to find a way to make everyone believe that NFT is worth a higher price, and how to make everyone believe that it needs to give Holder a sufficient sense of gain.

Next, I would like to briefly talk about what we are doing around the sense of gain without revealing any secrets.

I think the "sense of gain" can be simply and crudely divided into two categories, one is the economic sense of gain, and the other is the emotional sense of gain. .

I believe everyone can understand that economic gains cannot be achieved by continuously throwing money at the market. On the one hand, the market timing is wrong, and on the other hand, the market timing is wrong. On the one hand, this is an unsustainable thing, which will make the entire company unable to continue to operate, which will lead to the death of the project. So our idea is to allow everyone to obtain more external benefits by holding Little Ghost. For example, we are upgrading Little Ghost's spiritual power system and lottery system, hoping to make the mechanism operate as we designed without relying on third-party plug-ins and provide better rewards to diamond players.

Recently, a very strong technical leader has joined Little Ghost's team. He has made many contributions to multiple developer communities. With his Joining, many things that we have always wanted to do, but have no technical personnel to implement, can be quickly promoted, and we can be more flexible in the future.

On the other hand, about the emotional sense of gain.

In the past period of time, we have been immersed in promoting the development of Little Ghost IP. Now it can even be said that Little Ghost is the most cross-functional among all NFTs. A project jointly signed by the industry. We hope that through our efforts, holders can safely change to the little ghost avatar without worrying about being laughed at as a leek. We hope that all holders can feel that holding a little ghost is worth it. Something we are proud of, this is the driving force for our continued development.

Unlike many projects, our team is a team that truly started from scratch. We do not have a silver spoon in our mouth, nor have we been in the traditional industry for 10 years. I have no work experience, and I have never done any other entrepreneurship or industrial investment. At the beginning, the resources we had access to were very limited, but with sincerity and passion, we have made it all the way to where we are now. Our foundation is not good, but now we are no worse than anyone else, and we are even ahead of many people. Most of our team is from the industry, and they usually speculate in coins. I think this may also be one of the reasons that allows us to rely more on our feelings to do the Little Ghost project, rather than to make a fast-in and fast-out project. The project makes money quickly.

In the bear market of the past two years, we have been promoting the development of Little Ghost IP in the Web2 world and have done a lot of co-branding activities, but in fact these The positive feedback brought by joint branding is very limited, so we often fall into self-doubt and worry about whether it is valuable.

When I was on the phone with my second uncle a few days ago, I asked him: "From the perspective of a holder, when you see us reaching agreements with some Web2 brands Will you feel a sense of pride or gain from joint cooperation?"

He said: "Yes."

That moment really touched me. China is too big, so we can’t accommodate all Holders in every event, but I really hope everyone can see it. When the little ghost grows up, he will be proud of it. I can’t reveal too much about the development of Web2 business this year, but what I can say is that in the past year, we have run through the business model, and this year will be a year of continuous amplification, and we will borrow more With the potential of a more influential brand and more in-depth Web2 business exploration, although Rome was not built in a day, we believe that the little ghost will become a monster and grow rapidly at a speed that ordinary IP cannot match.

As the encryption market enters the bull market, this also means that we will launch a lot of actions in Web3. You can rest assured that we will use MID as an ecological entrance, in the future we will also promote other blockchains to be integrated into MID, so that our projects are no longer subject to a single blockchain ecosystem, but can develop in combination with multiple ecosystems. It is not convenient to reveal our other plans for Web3 at the moment, so please stay tuned.

We are promoting the transformation of the Little Ghost project from a single IP to an entertainment content ecosystem. Producing content, building platforms, and expanding channels are the focus of our work. Web2’s co-branding and The actions of Web3 will become our amplifier. I don’t think ETH NFT will die. On the contrary, after this wave of market conditions, I think more and more projects will start to try to do some practical things based on emotional hype. Maybe it can be said that the price is returning to value, but In the future, I believe that value will return to price.