Why NFT can increase in value?

The full name of the NFT is "Non-fungible Token", cannot be separated, cannot be replaced, and represents a unique existence, just as no two RMBs are with the same number in the world. Based on blockchain technology, NFTs provide a way to mark ownership of original assets, which can store important information such as creator, owner, asset transaction records, and can be accessed because of their unmodifiable characteristics. Higher authenticity and authority.

In the beginning, NFT shone in the field of digital (virtual, non-physical) art. Once images, music, videos, or even text on social media accounts become NFTs, they become collectible "babies".

A digital gif image called "Rainbow Cat" was auctioned for the high price of US $ 590,000, and a mosaic-style collage image called "Everydays - The First 5000 Days" sold for a sky-high price of US $ 69 million. The limited edition NFT album sold by electronic music producers sold for $ 11.6 million in one day. Recently, even the NBA also launched a community platform based on blockchain technology to facilitate users to collect and trade "NBA Wonderful Videos", and has achieved total sales of 230 million US dollars.

Image: NFT's sky-high digital masterpiece "Everydays - The First 5000 Days"

This is because the value of the proof of NFT ownership that cannot be changed or falsified increases the value of the goods. Especially for digital products that can be copied, enthusiasts who have the most original version compared to other copies will get a higher psychological satisfaction. In addition, when resold, the original version of the NFT was more sought after by collectors because of its rarity and authenticity.

Currently, based on the same principle, NFT is applied to the field of physical assets, such as the limited edition image of the "Niu Ax" NFT collection. It also explains the basic reasons why the figure is being taken away wildly, and investors from the financial sector are also participating in it.

How big is the NFT's imagination in the fan economy?

It's not hard to see from the "Niu Ax" incident that NFT is providing another possibility for the fan economy.

Celebrities can immediately sell their "assets" in the form of an NFT, without losing the difference in price. Fans buy on demand and get unique and exclusive celebrity assets. From a fan's point of view, it can be directly related to an idol, which can fulfill higher psychological needs and increase attachment; from a celebrity's point of view, the higher the stickiness of the fans, the more they can increase their value; for both parties, mutually beneficial. mutual benefit.

For example, suppose a celebrity has an undisclosed tidbit video that can be turned into an NFT asset for sale. Fans acquire sole ownership after purchase, and gain psychological satisfaction and show-off capital. Fans can flaunt assets without worrying about the loss of value caused by copying and distribution. In the future, when these assets are sold, the uniqueness and scarcity of the NFT for these assets can still be utilized to obtain higher yields.

It can be seen that once this model is built into scale, there will be more behavior in the output, sale, and resale of NFT assets. And this new model will most likely drive the secondary development of the fan economy.

Explore the new frontiers of the fan economy

The success of the NBA community platform based on blockchain technology reflects the enormous prospect of the NFT market.

At present, a similar community platform has emerged in China. "Octaw Entertainment World", co-producer of "Niu Ax", which officially launched on March 14, is a type of cultural and creative platform as well as a blockchain technology-based interactive community that specializes in serving the fan economy.

First of all, in the platform, all cultural and creative products are unique and exclusive assets (NFTs) formed through blockchain technology, and users will have exclusive ownership after purchase. Second, the platform releases activities related to movies, TV series assets, and celebrities, allowing fans to purchase exclusive NFTs for celebrities, interact with celebrities more closely, and own exclusive film and television (NFT) assets. Through the ATTA system and the community on the platform, users can get not only the right to participate in high-quality activities, but also the priority of platform rights.

This platform aims to create a vertical community based on blockchain technology, enabling fans to participate in governance fairly and impartially through an authentic and credible blockchain technology mechanism. Allows users to express their opinions live with their favorite movies, TV series and other exclusive products, as well as their favorite celebrities and idols, and participate in activities, and equips the decision-making power of their favorite activities / opinions through collective voting by fans.

In short, the NFT attribute itself has yielded tremendous value. The success of the landing in the fan economy also indicates that it will appear in more areas of life in the future. More and more investors are standing on this front. What changes will occur to the market structure in the future and whether it can break the boundaries of the existing fan economy is worth looking forward to.