Decline in the market
The gold fever around the multibillion dollar estimates of NFT's art market has left many questions before, but the current crisis has made it look at the NFT sphere through an enlarged glass.
The situation on the international market is similar, for example, Jack Dorsey's first tweet, which was bought for $2.9 million, was sold for $6,849 in a rebid in April.
"I don't want to exaggerate the effects of the NFT market collapse, but we need to be reasonable in explaining the causes and consequences of what is happening. Market stagnation is linked both to the community's fears about inflation and interest rates and global political and economic changes. Still, non-reciprocal currents are virtually not regulated anywhere by the law, they are risky to use," notes Husan Umarov, director general of the Kvell NFT. "But let's not be too scared. I would note that the NFT market, as a tree late in the autumn, is going through a certain legal stage of development rather than uncontrollably moving towards the end, as a number of sceptics predict. Through a sieve market, the unique currents begin to sift out the "dissorting" case copying the more successful fellows — speculative interest cannot continue forever."
NFT pricing causes a lot of criticism, it's because of a lot of speculative briefcases. The most common approach to monetization is to create garbage pictures and collections to catch hip. Such images sell to an investor who believes in a miracle, he hopes to sell them much more. The only understandable application of technology is "to buy an NFT with an OpenSee image cheaply, to sell the same NFT with an OpenSee picture more expensive.
The market needs a reboot: experts see social media as such. Deutsche Bank believes that the use of NFTs will increase users' confidence in collecting currents. The regulator's report notes that NFT can become a mainstream by supporting social media, which will help reduce the barrier to entry into the NFT market and lead to rebooting of the entire market.
The idea of rebooting it shows that the volume of problems is very serious, and there are still key issues that remain unworked, without which NFT cannot emerge from the speculative niche.
Where do they use NFT?
NFT is not just a term from a metaverse that will be introduced into everyday life for a long time; on the contrary, NFT is already part of our life; it is used in dozens of spheres, sometimes very creatively.
- Crowdfanding and politics
South Korean presidential candidate Yoon Sok Yel announced a fundraiser based on NFT. All the victims received as a commemorative gift from NFT. He is not the only politician who designed to use NFT for his own purposes. In 2022, former US president Donald Trump also entered the metallurgy with his line of intermingled currents. His Trunm NFT collection brings together 10 original works of art dedicated to important aspects of his administration.
One of the first luxury brands to use NFT as a way to capture the original owner was Jacob & Co. According to SEO, Benjamin Arabov's company would use technology to sell to collectors and investors who wanted to invest in a unique product.
The NFT may be able to fight the market for expensive counterfeits. For example, manufacturers of low-spore sneakers can add NFT for each sold couple and link ownership to the original buyer. Snickerheads in the secondary market can quickly check whether the sneakers are original.
At events dedicated to progress and innovation, ordinary bronze or wooden statues or instruments are still presented. "We offer 3D awards enshrined in NFT. This is a reward and at the same time visualization of its rights," says Olga Bachlina, founder of NFTBirds.ru. This award cannot be faked or changed in the back. In distributed systems, information about the right holder will remain forever.
- Membership in a closed club
The VCR Group announced the opening of a restaurant in New York City that would not be open to everyone. The restaurant offers two levels of NFT membership. The "Base" provides general access to the main restaurant, and the "more expensive option" is that the NFT opens an additional hall where visitors can eat high-quality Japanese cuisine specially prepared by the chef. Experts suggest that NFT will become a new page for communities and closed clubs.
- For TV
Samsung 2022 has an option for watching and selling NFT. In a press release, Samsung says that clients can view, display and interact with NFT without getting off the couch. It is likely that this option will become a competitive advantage in the new generation's televisions.
How do they use NFT?
When the camera was invented, the first experimenters couldn't even imagine that their technology would ever be used to get the image. Just as Kepler's astronomer did in the 17th century with optical experiments, they didn't think about family photos and selfies in the future. Each such optical experiment was built on one another, and eventually the camera came into being. The same thing is happening now with NFT. We're in about the same situation as the technology is being developed, and every experiment and experiment is very important. We see that there are now different scenarios for using NFT technology, where the sale is not the ultimate goal. Because in this case it is possible to speculate anything, and not necessarily the technology.