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Does the NFT craze actually matter? – TechCrunch

Hello friends, and welcome back Week of review!!

Last week we talked about Apple’s subscription addiction. This week we’ll dig deeper into whether it makes sense to get out of the 2021 NFT mania.

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Image via OpenSea

Big thing

The NFT market is still against the ground, but it’s still the case. But there’s one thing I’m not particularly sure about lately when I see JPGs continue to sell for millions of dollars. Is this really important?

I spent a lot of time wrestling with the NFT market last year, but sometimes it fell asleep. As a reporter who frequently reports on this market, I don’t own or trade small images myself, but I’m still obsessed with price fluctuations and prevent me from scrutinizing discord in an attempt to follow trends. did not. I’ve listened to countless Twitter Spaces and lurking subreddits trying to understand them all. I also did my best to get rid of most of it from this newsletter — it’s a weird niche interest that’s particularly niche at the moment — but Bitcoin flirt with the greatest newness ever and NFT enthusiasts. Please consider this as timely updates will follow.

Therefore, over the past month, investors have been dropping billions to billions of dollars in NFTs.High seas I’ve seen over $ 3 billion in trading volume Over the last 30 days, that number has actually dropped significantly since August, indicating that off-peak funds continue to flow into NFTs.

All of that money went to some colorful places. One of the big success stories last month is the $ 100 million investor-invested platform CrypToadz.They look like this.. Over the past few weeks, a new project called MekaVerse has traded $ 130 million.They are A little beautifulBut do you spend more than $ 8,000 on one?platform Crypto slum (I’ve pulled most of the data referenced here) is tracking 163 platforms that have achieved over $ 1 million in volume over the last 30 days. This number does not take into account the individual artists who sell their work on platforms such as OpenSea.

Currently, the NFT community has two very different segments, with large NFT projects such as: Axie Infinity NBA top shots have tens of thousands to hundreds of thousands of users, and small NFT projects such as CryptoPunks and ArtBlocks have hundreds or thousands of owners. Larger projects can represent more traditional game titles with a more complex in-game economy, while smaller projects look like an art market teamed up with exclusive social clubs. increase. While some small projects have the ambition to eventually become large projects, many projects have a limited number of NFTs in the project and are designed exclusively.

Over the last 30 days, Axie Infinity has generated nearly $ 2 million in transactions and more than $ 500 million in sales to over 350,000 buyers. CryptoPunks, on the other hand, recorded $ 200 million in sales with 484 transactions and 309 buyers over the same period.

In general, when talking to my friends about some of these big sales from small projects, the first thing they mention is that this is probably all just money laundering.I do imagine Some of that is happening, It’s, in the end, a much more boring explanation than my best guess about what’s really going on. This means that a group of thousands of investors has individually rationalized irrational investments. They happened to choose to do so by purchasing pixel art and animal paintings.

Some investors may suggest that some of the early NFTs have intrinsic value as historical objects, but with less effort and imagination earn a $ 10 million valuation on the first day. There are many brand new NFT projects.

This is the awe of entering a market filled with large amounts of reinvested wealth generated by Ethereum billionaires who can make large payments for transactions while boosting the implicit value of objects, projects and the whole. It seems to be the result of momentum from individual investors who have caused the NFT market and Ethereum prices to rise at the same time. Most of these investors are also those who have held Ethereum through the wave and have become a radical hater of cash outs. This means that unless you are trying to buy or have another more expensive NFT, you are less likely to sell your purchased NFT. An offer was made too good to refuse. As a result, many high-value small projects remain low-end and liquid, but low sales of rare items underpin the project’s large-scale reputation, and occasional large-scale purchases drive prices. continue.

All of this babbling of mine is to say that what’s happening here is strange. It’s also an incredibly large amount of noise, mostly coming from thousands of buyers.

But when most investors talk about mainstream adoption and future use cases, they embody many of the technical bells and whistles of cryptoeconomics in a more user-friendly package than like Axie and TopShot. You can reach the mainstream watching the creation of large projects. NFTs as a concept to drive a more complex virtual economy are certainly really appealing, but there are so many points for many crypto investors to withdraw from these small projects like digital art and CrypToadz. I don’t think venture capitalists are trying to convince themselves.

Only three NFT platforms have had more than 10,000 active unique buyers in the community in the last 30 days, and while the success of platforms like Axie Infinity is definitely worth analyzing, it’s the height of speculative enthusiasm. It is also clear that we are in the midst of it. And it’s not an easy time to come to a cool conclusion about what this madness means for the future of the web.


Ali Bali Kuchi / Anadolu Agency

Others

There are some stories this week that I think we should take a closer look at.

Apple probably won’t support alternative App Store payments soon
Apple did its best to convince the media and the general public that the court’s decision in the court battle with Epic Games was a complete victory for Apple, but over the weekend, they made the decision a few weeks later. He appealed and quietly announced that he would seek submission to the court. Ordered changes to allow alternate payments within the pending iOS app.

Apple has been calm after the ruling, but it’s clear that there will be billions of people on Apple’s line if the order is passed. Therefore, delaying its deployment means billions of dollars that are not paid to other payment providers or are not limited to the developer’s financial resources. Epic has already appealed the decision, hoping to try a more favorable judgment, but as is often the case with corporate law, anyone who wants a quick solution is disappointed. Is clear.

Nintendo Rebuilds SaaS Ambition
Nintendo has been, and probably will continue to be, a big company that has changed a bit. They have resisted new trends in the game, and when they accept them, they don’t necessarily do a great job with them, yet their beloved pile of IPs makes them right. Give you a chance. This week, they announced details of a new annual membership called Nintendo Switch Online +. It costs $ 50 a year and offers gamers a wider range of content. That’s a lot higher than the standard $ 20 per year for a regular Nintendo Switch Online subscription, but it’s more accurate for consumers to sell beyond the unannounced expansion of virtual console support for a series of N64 games. It’s not clear what it is.

Interestingly, they have launched a free access to Animal Crossing: New Horizons major updates. It’s a play that only works when you’re Nintendo and your first-party title penetration is very high among device owners (and perhaps subscribers). Nintendo has sold over 3.4 million new Animal Crossing titles worldwide.

Microsoft withdraws LinkedIn from China
It was a particularly confusing time for tech companies across China as government regulators cracked down and the outlook for large platforms was clouded. This week, Microsoft announced that it would withdraw from China, detailing that LinkedIn “is facing a very difficult operating environment and stricter compliance requirements in China.” LinkedIn didn’t have a big presence in China, so it won’t be a big wave, but it’s a relationship between China and China, as other American tech giants have been forced to make significant adjustments to China’s strategy. Yet another data point for cooling. West.

LinkedIn in the world is not very influential in China. The most interesting thing about this is how this increase in regulation will ultimately affect Apple. Authorities are probably not keen on interfering with them, but last year Chinese regulators showed that they had a lot of surprises on their sleeves.


Wool check blanket stack

Image credit: Manuta / Getty Images

What was added

Some of my favorite reads from the newly renamed ones TechCrunch + This Week’s Subscription Service:

Inside the plaid
“… Visa and Plaid may have chosen their own path in the end, but this year wasn’t a complete loss for data connectivity startups. Plaid said it had a 60% increase in customer numbers in 2020. Insist, executives have seen similar growth so far this year … “

Founders need to use predictive modeling to raise money smarter
“In the early stages, more capital is flooding growth equity and it’s progressing faster than ever, but the enthusiasm for putting large-scale equity checks on startups is rampant. Nevertheless, the founders are now in a unique place where they can think differently about how to capitalize the company …“”

How a startup increased productivity on a “gets *** done” day
“… Introducing Getting Shit Done Day (GSDD) to improve productivity. Employees define clear goals and perform specific, usually important tasks with little or no communication. Receive (recommend employees to avoid social media) this day, but we don’t look over their shoulders). GSDD’s goal is to minimize the distractions of the biweekly day. By doing so, you spend more time on deep work … “


Thanks for reading, and if you’re also reading this on the TechCrunch site, you’ll get this in your inbox Newsletter page, And follow my tweet @lucasmtny

Lucas Matney



Does the NFT craze actually matter? – TechCrunch Source link Does the NFT craze actually matter? – TechCrunch

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