What is a NFT?
Non-fungible tokens (NFTs) are new types of digital assets. Ownership of assets is recorded on the blockchain, the same technology used to record digital ledgers for cryptocurrencies such as Bitcoin. But unlike cryptocurrency, you cannot exchange a non-fungible token for another non-fungible token (this is why it is called “non-fungible” token , because there is no substitution), because each non-fungible token is designed to be unique and cannot be replicated.
How to ensure the uniqueness of NFT assets?
Although most non-fungible tokens are image files in JPEG format that can be copied by right-clicking and saved to the local computer, it is true that these JPEG image files can be copied, that is, non-fungible tokens, but more importantly is, behind every JPEG file there is a digital asset that cannot be copied. This digital asset can be used to prove the authenticity of the JPEG file.
The owner can think of the non-fungible token as a certificate of authenticity obtained after purchasing a precious master painting. The painting can be imitated or counterfeited, or it could be stolen by a burglar, but since the certificate of authenticity is in your hands, you can prove that you are the owner of the original.
Where is the value of NFT?
Because of the uniqueness of non-fungible tokens, the design method that cannot be replicated results in the rare value of non-fungible tokens. Non-fungible tokens are equivalent to the encrypted version of rare player cards. Just like the value of the player card, people may want to collect the physical player card.
Important NFT related trading platform
OpenSea is the world largest NFT trading platform. Twenty-six months after OpenSea went live, there were only 4,000 active users. In February 2021, non-fungible tokens started to go viral. In July 2021, it processed $350 million in non-fungible token transactions, and received $100 million in financing led by A16Z, with a corporate valuation of $1.5 billion. There are currently over 1.5 million accounts on the platform.
OpenSea currently controls 90% of transactions in non-fungible tokens. Dune Analytics data shows that in January 2022, the transaction volume of non-fungible tokens on OpenSea’s Ethereum blockchain has exceeded $4 billion, creating a new monthly high in the company’s history.
Opensea’s fee is 2.5%, as compared to Meta’s Horizon Worlds’ 17.5%. Meta said creators can sell digital assets in Horizon Worlds for up to 47.5% commission per transaction, including a 30% platform fee through its Meta Quest Store and a 17.5% fee for Horizon Worlds.
Coinbase itself is also an investor in OpenSea, but it has launched its own non-fungible token trading platform, trying to narrow the gap with OpenSea. Coinbase’s biggest advantage is the world’s largest digital asset trading platform. According to its 2020 listing prospectus S1, it has 43 million users, 2.8 million monthly active users, and an annual transaction volume of 193 billion US dollars. Client assets under management on the platform are $3.76 billion.
Despite the cryptocurrency market slump, Meta is ambitious, with support for non-fungible tokens for the first time on Instagram in May 2022. Great news for merchants, creators, and influencers on Instagram, and have been working hard to test the non-fungible token features with select US creators.
Meta’s advantage is that its platform has more than 3 billion users, and Meta has announced that the entire company has turned to the metaverse, and it has also decided to change the company’s name to Meta. In the world of the metaverse, non-fungible tokens are the primary commodity and medium of exchange.
Non-financial or dealer support
Why do companies want to support NFT?
Since non-fungible tokens are inherently digitized and stored on the blockchain network, they have the characteristics of asset uniqueness. This has caused many companies with rich intangible assets and intellectual property rights to digitize their assets and add support for non-fungible tokens.
Some first movers
Of these companies with substantial intellectual property rights, we have selected some of the more representative ones and listed them in the table below. Such as Disney with many cartoons and movies, Mattel with children’s toys and dolls, Nike and Adidas with many athletes sponsored, Adobe with multimedia production tools.
NFT related companies and stocks
|OpenSea||Unlisted||World largest NFT trading platform|
|LooksRare||Unlisted||World second largest NFT trading platform|
|Coinbase||COIN||Launch NFT P2P trading market|
|Meta||META||Support NFT on Instagram|
|TWTR||Founder sold his first twit message in NFT format|
|Shopify||SHOP||Merchant can trading NFT|
|Kreatorhood||Unlisted||Creators’ community, support NFT|
|Visa||V||The platform begins to support non-fungible token transactions or payments|
|Mastercard||MA||The platform begins to support non-fungible token transactions or payments|
|American Express||AXP||The platform begins to support non-fungible token transactions or payments|
|Adobe||ADBE||Support the production of non-fungible tokens|
|Nike||NKE||Company products and intellectual property support non-fungible tokens|
|Adidas||ADDYY||Company products and intellectual property support non-fungible tokens|
|Disney||DIS||Company products and intellectual property support non-fungible tokens|
|Mattel||MAT||Company products and intellectual property support non-fungible tokens|
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