Is the NFT bandwagon crashing?
In recent weeks, NFT has been a very popular keyword. Since January, NFT has been under hot debate within the blockchain industry. NFT related discussions have even attracted more attention than DeFi topics on numerous social media platforms. Despite its popularity, some people predicted that the current wave of NFT fever will soon cool down. Nevertheless, judging from the nature of NFT, with the continuous maturation of blockchain technology, NFT still has far greater application values.
Let’s talk about NFT Today.
What is NFT?
NFT stands for Non-Fungible Token, i.e. non-homogeneous token. Non-homogeneous implies that each NFT token corresponds to one and only one unique item. NFT is not interchangeable. Simply put, it is similar to assigning an exclusive and unique value for an item or asset.
The traditional finance industry has a terminology called ABS, it stands for Asset-Backed Security. In layman’s terms, ABS is a fundraising method, it utilizes expected future returns generated by underlying assets to borrow funds. In essence, the NFT of the digital world is equivalent to ABS in traditional finance.
The main advantage of ABS is its unique ability to transform low liquidity assets into high liquidity securities. For companies and enterprises, ABS could help them to cash out and transfer their future assets, thus fulfilling their financing demand and capital risk management. That is to say, ABS could mobilize fixed assets.
- For companies and enterprises, they could extend their financing options and reduce financing costs.
- For ABS lenders, this is an additional asset allocation method, they can expand the range of their financial products.
- For investors, when there is a severe asset shortage, new and high-quality asset such as ABS is a much-welcomed presence.
NFT’s application scenarios
By analyzing current NFT projects in the market, we can categorize them into three major categories: art collectibles, gaming products, and other miscellaneous collectibles.
Due to NFT’s non-homogeneous and indivisible nature, it could act as an anchor of value for real-world commodities. For example, tokenized event tickets, a precious bottle of wine, uniquely designed jewelry, Leonardo da Vinci’s art paintings, jade artworks, collectibles, etc. These things possess an innate value, thus we are able to digitize it and hash encrypt it to produce a private key with a unique hash value, which is corresponding to one specific asset.
NFT is becoming especially popular in the gaming industry. In-game items are an ideal candidate to be tokenized for easy transfer or exchange. Gamers can trade tokenized in-game items or NFT for fiat currency without third-party involvement.
Typical NFT success stories
One of the phenomenal NFT case studies is the highly popular CryptoKitties. In the CryptoKitties game, every crypto cat is unique and has its own ID and attributes. CryptoKitties was extremely well-received upon its launch. It has attracted hundreds of thousands of participants who breed millions of crypto kittens. Its popularity once led to serious congestion in the Ethereum network.
Recent examples of booming NFT success include NBA Top Shot, a crypto collection of NBA star cards; Logan Paul, a YouTube celebrity, launched a Pokémon NFT collection; Christie’s, the world’s top auction house, auctioned Beeple’s NFT crypto artwork for $69.3 million.
We pay special attention to the NFT collectible NBA Top Shot. Within six months, its sales total has exceeded $ 500 million with 826,000 registered accounts. The total revenue of the NFT card packages has reached more than $ 7.3 million. This is a blockchain-based NBA digital collectible card deck launched by DapperLabs in collaboration with NBA. NBA Top Shot is fascinating because it does not emphasize its blockchain property, but rather, it focuses on the content of the cards themselves. It also highlights the collecting experience and the process of random card drawing and card trading. NBA Top Shot is mainly targeting collectors in their 30s. These collectors have a deep affection for basketball and NBA when they were teenagers. The combination of NBA and NFT gives them a nice surprise and sparkled their curiosity. Early collectors also earned considerable profit from their cards.
After Christie’s successful auction, Phillips Auction also joined the effort. on April 12, in the online auction of Mad Dog Jones’ Replicator Phillips announced their acceptance of ETH or USD as the payment. They managed to sell two of Mad Dog Jones’ crypto art NFTs with a combined sale of $3.9 million.
Elon Musk the cheeky multimillionaire who loves crypto also fanned the flame of NFT. He once tweeted a song and said ‘I’m selling this song about NFTs as an NFT’. Within a day, the song was bidding for hundreds of thousands of dollars. The most amazing thing is that someone took a screenshot of Musk’s tweet, packaged it as NFT and sold it. You can literally turn anything into tradable NFT.
With NFT’s innate value and the prospering DeFi model, we believe NFT will soon expand to more areas with practical applications, such as real estate, handy craft artworks, collectibles, etc. Many NFT projects have already achieved great success in these areas. Undeniably, investors will continue to be optimistic about the prospect of NFT investments. For many industries, it is only a matter of time before they release their own NFTs.
With the expansion of the NFT field, many mining power NFT platforms have emerged. One prominent example is the decentralized mining power financial service platform DMEX. DMEX is utilizing the mining power of the top three mainstream crypto assets, Bitcoin, Ethereum, and Filecoin as its underlying assets. DMEX converts effective mining power into NFT so that more average users can participate in crypto mining with ease. The most interesting innovation of DMEX is that DMEX integrated a good variety of DeFi instruments to provide more financing options for its users. Moreover, DeFi also provides multiple earning opportunities for the users. Users could earn compounded interests and numerous additional incomes.
Another unique feature of DMEX is that DMEX has an interesting NFT simulation game featuring a duck, Tim the Duck. While playing the game, not only can users participate in platform token DMC mining, but also users could feed and hatch the Tim Duck. Tim the Duck should be fed daily. When the duck matures, users can earn a DMC reward as well as certain rights on the DMEX platform. For example, eligible users can pay less mining service fees, accelerate their mining output rate, and earn more platform dividends, etc. Users can build their own duck farm on the DMEX platform and increase their investment income. DMEX’s platform token, DMC, will keep increasing in value as the platform value increases.
The upgrade from 1.0 to 2.0
The 1.0 version of DMEX was focusing on trading mining power NFT. The tokenization of mining power increased its liquidity. When DMEX was upgraded to the 2.0 version, the platform added liquidity mining, joint mining, Proof of Stake mining, and many innovative and practical mining products. These products liberated users’ trapped assets, increased capital liquidity, lowered the transaction fees, and lowered the entry barrier to the mining business. Moreover, DMEX is also exploring other mining power service options, such as the simulation game Time the Duck as well as other creations. DMEX is continuously improving its user experience, these efforts have earned wide recognition in the community. With an increasing number of offline meetups and online overseas communities promotions, DMEX’s branding effect and user engagement have been steadily rising. At the moment, DMEX’s TVL is approaching $39.06 million, this number is still adding every minute.
The common consensus is that in the blockchain industry, mining machines are the best quality assets and they are on the top of the crypto food chain. Some people argued that NFT is merely a short-lived bandwagon. However, the tokenization of physical mining machines to digital NFTs builds a bridge between the blockchain industry and the traditional financial industry. This is also the reason why we are optimistic about DMEX’s future. DMEX is taking a slow but steady approach towards the NFT revolution. DMEX does not hype the NFT concept for short-term benefits.
In our digital future, more and more asset owners will embrace the digital trend. The combination of ABS (Asset-Backed Security) and DeFi will promote a chain reaction to ignite another round of rapid growth in the blockchain industry. The great story of NFT will live on.
Official website: dmex.finance
Telegram: DMEX Chat