NFT Gambling?

The term NFT has become more and more popular recently, and I believe everyone has heard of it. Many celebrities and brand companies have joined the NFT market, and they are even appearing in the news with increasing frequency. But what exactly is NFT, and what principles and core does it operate on? What is the magic and characteristics of NFT that make celebrities and brand companies join this market? Today, the editor of TC-Gaming will take you to understand NFT.

CollectiblesNFT?

NFT (Non-Fungible Token), which means "non-fungible token" in Chinese, is a unique digital asset (Digital Asset). The ownership of these assets is traded and recorded on the blockchain.

NFT is a token generated on the blockchain. Each token has a fixed number. This emerging file format can be exchanged by transmitting tokens. It has anti-counterfeiting advantages, ensures security, and also has certain ownership attributes. guaranteed. NFT is a new "file format" that opens up a new economic ecosystem. Because the source of a digital file can be immediately checked, it can be verified whether the file is an original and ownership can be tracked. When NFT is combined with digital files, it is easy to check the owner of the file through a fixed number and confirm whether it is the original.

NFT is a type of virtual asset. Although it is digital content that can be copied using blockchain technology, it can mark ownership through encryption, combined with metadata that records the product information, and a timestamp to prevent illegal copying. (Timestamp) can become a unique digital asset in the world.

Why are NFTs so popular?

In 2017, the blockchain game "CryptoKitties" was an application of NFT. However, only a few people in the currency circle paid attention to it at that time. There were no large brands or celebrities investing in it, and it did not trigger a topic in the news. Until March 11, 2021, Christie's in the UK held a "Digital Artwork" auction. Digital artist Beeple's work "Everydays: The first 5000 days" was sold as an NFT (non-fungible token). was auctioned and sold at a high price of US$69 million, becoming the most expensive NFT artwork in history; in the same month, Twitter founder Jack Dorsey sold his first post on Twitter in the form of NFT, and Transacted at a price of US$2.91 million at the time, the two pieces of news received widespread attention in the crypto asset market. People began to think that maybe collectibles are no longer limited to physical items. Even if pictures, texts, and videos on the Internet can be reprinted, they can still retain a certain collection value.

In addition to digital artworks, virtual player cards officially authorized by the NBA have also started a craze for NFTs. Fans can purchase highlights of their favorite players’ game scenes on the NBA Top Shot website. Currently, NBA Top Shot’s Total sales have exceeded 11 million. The most famous transaction was a 24-second dunk video of LeBron James, which was sold for US$208,000.

Currently, NFT is mainly used for encrypted artwork, online game props, event tickets, NBA player cards, NBA Top Shot, pictures, music or a video. Basically, almost anything in the online world can be turned into NFT and then auctioned and traded. or collection.

What isCollectiblesRisk？

As NFTs become more and more popular, although NFTs have unique and irreplaceable characteristics, some people can't help but have some doubts. Some people regard NFTs as works of art or collectibles, while others buy NFTs with a speculative mentality. Just like other virtual assets, the price of NFT can be very volatile, and its actual value is difficult to determine. It also involves trading platform risks, liquidity risks, digital wallet risks, cross-border risks and lack of supervision. Some people question that this is simply a hype game by investors, and they do not really want to collect digital art. Others believe that the price of some NFTs is far beyond their reasonable price.

Summary

Although NFT transactions are all through the cryptocurrency market, such behavior seems to be no different from ordinary online market transactions.But investing in NFT is actually like gambling, because no one is sure what the future NFT market will be like, whether the NFT purchased through crazy buying can really maintain its value, or whether the NFT currently held will one day appreciate in value.Most people who invest in NFT believe that the growth rate of the NFT market will only get faster and faster, and the appreciation potential seems to be unlimited, so they are trying every means to grab a place in the NFT market. Whether NFT is a short-lived gimmick or an innovation with real market value is still worthy of continued attention. Everyone is welcome to share more opinions on NFT.