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Results of 2021 for the NFT: Rise, the Cargo Cult, and Prediction

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Results of 2021 for the NFT: Rise, the Cargo Cult, and Prediction

January 14
17:12 2022

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

Why has NFT only appeared now?

The study of NFT was started back in 2014 through to 2017, long before the general rise in the popularity of cryptocurrencies. In 2017 and 2018, the first signals began to emerge that the NFT industry would develop tremendously and cause an international resonance, not only among geeks but also in the financial world.

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

In early 2021, skeptics were saying that NFT was crazy and that it was temporary and demand would pass.

But as we can see, audience interest in the industry in November is double the metrics of the spring. Demand hasn’t gone anywhere; in fact, it continues to grow every month.

Jerremy Ollaf, NFT FOX analyst, attributes the accelerated pace of the NFT industry to coincidence:

  1. Cryptocurrency projects collected a lot of hype money, which had nowhere to go (NFT is bought with cryptocurrency, not fiat money);
  2. Crypto investors, who have more expensive assets on hand, were looking for new ways to earn money and invest in everything: DeFi, NFT, and so on;
  3. Famous people, with an audience, connected to NFT: artists, directors, opinion leaders in social networks;
  4. Lawyers, futurologists, and representatives of major corporations spoke positively about NFT;
  5. Making NFT collection now takes less time than it did with the ICO in 2017;
  6. The infrastructures were ready. There are a huge number of experts in the Crypto industry who entered the market in 2017 at the time of the ICO;
  7. Increased excitement for meta-universes after the renaming of Facebook to Meta.

The very idea of digital asset ownership in the age of digitalisation sounds rational, especially since the financial and entertainment industries have responded positively to the technology. The emergence of NFT turned out to be beneficial for everyone.

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 alluring force was money, not the love of art. Logically, most of the investors came to the market to make money, not to invest in promising art projects. Do you feel the catch?

As a result, the market turned into a gathering of speculators who bought everything in a row, hoping to resell the token from the collection further down the chain to other hands. This is a market for speculators, not a market for authors. There’s not even a whiff of art. Buying for the sake of selling, that’s all.

 

To produce an in-demand NFT collection, the author needs to think not about the creative value of his work, but about how to interest resellers. Cargo-cult in action. The scheme 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. Stimulate the interest of early investors-redeemers through closed chats and communities;
  4. Attract even more redeeming investors through marketing tools
  5. Organize multi-channel promotion of the project;
  6. Organize additional promo;
  7. Once again, don’t stop promoting using all available industry channels. 

Skeptics twiddle their thumbs when they find out that the volume of bidding for the 7 days of the CryptoPunks collection is – $23.7M. “That’s crazy, I can draw that too, give me the money,” they say. Let’s try to explain this point in more detail.

 

First of all, it’s not about the drawing.

Popular collections like the CryptoPunks, or the Bored Ape Yacht Club, are a phenomenon just like Black Square. A lot of people can draw a square, but it won’t make you a millionaire. It works the same way with the NFT.

Secondly, the market decision guarantees a fair price, the market still decides. We can state: ‘The commercial approach in the industry has beaten art’. 

Alas, not everyone can sell expensive. Over 70% of collections on the NFT Marketplace are empty, without a single transaction. And how many made money during the U.S. gold rush? Most likely, exclusively pickaxe sellers.

The skeptics are right about one thing: NFTs are created upfront, disconnected from other ecosystems. The pictures have no practical application. Want to prove otherwise? Try it in the comments.

NFT marketplaces are stamping thousands of collections whose only practical purpose is to die and become black soil for other projects.

Less than 1% of collections win in this crazy race. This is neither good nor bad. It is something to take into account before launching your advertising campaign. The checklist is written above.

The bright spot in this story was the announcements of major brands and social networks, whose released collections have actual meaning and application. For example, when you buy an Adidas NFT, you get access to limited-edition merch.

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

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

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

  1. There will be “How to Make Money with NFT” courses on the market;
  2. New professions “Producer of NFT-Projects” will appear;
  3. With a sharp increase in the key rate, the cost of NFT may temporarily fall, but with a favorable set of circumstances, the market will recover and go up;
  4. The risk of appearance of NFT-Pyramids and other scam schemes is very high; Shortly the jurisdictions of most countries will not be favorable to the NFT-Industry. The state system is inertial, there are no direct benefits from the legalization of NFT: 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 situation on the market by attracting resellers to its marketplaces.

Media Contact
Company Name: NFT FOX
Contact Person: Jerremy Ollaf
Email: Send Email
Country: Canada
Website: https://nft-fox.com/

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