Tuesday, January 18, 2022

2021 Results for the NFT: Rise, Cargo Cult, and Prophecy – Digital Journal

A lot of interesting and new things happened in 2021. We all remember the rapid rise of bitcoin, the glow of covid, rising stock market prices and much more. But today we want to talk about something else – the birth of a new kind of cryptocurrency – NFT.

Why is the NFT only visible now?

The study of NFTs started from 2014 to 2017 long before the general rise in popularity of cryptocurrencies. In 2017 and 2018, the first signs began to emerge that the NFT industry would grow tremendously and create an international resonance not only among geeks but also in the financial world.

Google Trends says that throughout the history of the development of this technology, it is now at the peak of popularity.

In early 2021, skeptics were saying that NFTs were crazy and that it was temporary and the demand would be met.

2021 Results for the NFT: Rise, Cargo Cult, and Prophecy - Digital Journal

But as we can see, audience interest in the industry in November is twice as high as in the spring metrics. The demand has not gone anywhere; In fact, it keeps on increasing every month.

Jeremy Olaf, NFT Fox analyst, attributed the coincidence to the accelerated momentum of the NFT industry:

  1. cryptocurrency projects collected a lot of promotional money, which had nowhere to go (NFTs are bought with cryptocurrency, not fiat money);
  2. Crypto investors, who have more expensive assets, were looking for new ways to make money and invest in everything: DeFi, NFT, and so on;
  3. Famous people with an audience associated with NFT: Artists, directors, opinion leaders in social networks;
  4. Lawyers, futurists, and representatives of major corporations spoke positively about the NFT;
  5. NFT collections now take less time than ICOs in 2017;
  6. The infrastructure was ready. There are a large number of experts in the crypto industry who entered the market in 2017 at the time of the ICO;
  7. Enthusiasm for the Meta-Universe increased after Facebook changed its name to Meta.

The idea of ​​owning digital assets seems logical in the age of digitization, especially since the financial and entertainment industries have responded positively to the technology. The rise of NFTs proved to be beneficial for all.

The 2021 boom has spawned several “garbage” projects

The year 2021 was a boom of NFT projects – we heard about dozens of famous collections that raised millions of dollars: Cryptopunks, Bored Ape Yacht Club, and others.

In this case, the main attractive force was money, not love of art. Logically, most investors came to the market to make money, not to invest in promising art projects. do you feel the hold?

As a result, the market turned into a group of speculators who bought everything in a row, hoping to resell the tokens from the collection to other hands down the chain. This is a speculator’s market, not a writers’ market. There is no place for art. Buying to sell, that’s all.

2021 Results for the NFT: Rise, Cargo Cult, and Prophecy - Digital Journal

To create an in-demand NFT collection, authors need to think not about the creative value of their work, but about the interest of resellers. Cargo-cult in action. The plan for a typical project is as follows:

  1. Create a beautiful package;
  2. to come up with a legend for the project or collection;
  3. Encouraging early investor-redeemer interest through closed chats and communities;
  4. Attract even more capitalizing investors through marketing tools
  5. organize multi-channel promotion of the project;
  6. organize additional promos;
  7. Once again, don’t stop promoting using all available industry channels.

Skeptics twirl their thumbs when they learn that the bidding volume for 7 days of Cryptopunks collection – $23.7 million. “It’s crazy, I can draw that too, give me money,” he says. Let us try to explain this point in more detail.

2021 Results for the NFT: Rise, Cargo Cult, and Prophecy - Digital Journal

First of all, it’s not about drawing.

Popular collections like Kryptpunks, or Bored Ape Yacht Club, are a phenomenon just like Black Square. Lots of people can make a class, but it won’t make you a millionaire. It works the same way with NFTs.

Secondly, the market decision guarantees a fair price, the market still decides. We can say: ‘The business approach in industry has overtaken the art’.

Alas, not everyone can sell expensive. More than 70% of collections on NFT Marketplace are empty without a single transaction. And how many made money during the US Gold Rush? Most likely, especially the pickaxe seller.

Skeptics are right about one thing: NFTs are built in advance, isolated from other ecosystems. Pictures have no practical application. Want to prove otherwise? Try it in the comments.

NFT Marketplaces are stamping thousands of collections whose sole practical purpose is to become black soil for dying and other projects.

Less than 1% of the collections win in this crazy race. It is neither good nor bad. This should be kept in mind before starting your advertising campaign. The checklist is written above.

The bright spot in this story were the announcements of major brands and social networks, whose released collections have real meaning and application. For example, when you buy Adidas NFTs, you get access to a limited-edition merchant.

Such a decision reflects the interests of the audience of popular clothing brands: many fashionistas will spend a couple of thousand dollars on unique goods that ordinary people cannot afford. Limited-edition collections are also the subject of interest from resellers, who then sell the merchandise for a higher price. The fashion industry truly combines art and money.

There is no end to this story. A surprise year awaits us in 2022. How will the NFT market change? How will the cryptocurrency market change? Will we see more upside or will the market go down?

The NFT FOX team has written the most anticipated predictions for the NFT for 2022:

  1. In the market there will be courses “How to make money with NFT”;
  2. New professions “producers of NFT-projects” will appear;
  3. With a sharp increase in the prime rate, the cost of NFTs may drop temporarily, but with favorable conditions, the market will recover and go up;
  4. The risk of NFT-Pyramid and other scam schemes appearing is very high; Soon the jurisdictions of most countries will not be NFT-industry friendly. The state system is passive, there is no direct benefit from the legalization of NFTs: therefore, we should not wait for positive legislative decisions.
  5. The most expected players in the NFT market are game developers. GameDev will be able to significantly change the market position by attracting resellers to its markets.

media Contact
company’s name: nft fox
contact person: Jeremy Olaf
E-mail: send email
Country: Canada
Website: https://nft-fox.com/

2021 Results for the NFT: Rise, Cargo Cult, and Prophecy - Digital Journal

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