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Do you own an Azuki?

The Daily Crypto News • Jul 12, 23:01

Today we are not going to discuss hot spots, let's talk about an industry that has recently lost faith and the market is getting colder and colder.


Yes, what I want to talk about is NFT.


When this industry is going crazy, the so-called meme token can only stand aside. Regardless of the increase in currency or the degree of investor madness, the heyday of NFT can be completely crushed.


l  Similarly, how glamorous it is when it is in power, and how miserable it is when it loses power.


Ø  In the past month, the market has generally fallen, especially under the blow of Azuki, the market has fallen to the lowest point in the near future. Compared with a month ago, the market price and transaction volume have almost halved, even Many NFT Degen are also losing money, declaring to withdraw from the circle under the stimulation of dozens or even hundreds of ETH.


Ø  Why is this happening to the NFT market?

Ø  Where is the actual value of NFT?

Ø  What is the underlying logic of NFT investment?



l  It all starts with the Azuki project.


Ø  Azuki was once the second largest project in terms of market value, second only to the famous BAYC. With the help of the influence of Japanese comics, Azuki has formed its own solid fan base in the circle with its stylized design style, unisex painting attributes, and the superb skills of illustrators. The overall market value of Azuki It has also risen to the second level in the world after BAYC.



l  What NFT at this stage mainly provides is the value of showing off at the social level, which is no different from luxury goods.


Ø  In real life, there are many ways to show off, such as brand-name luxury bags, Swiss mechanical watches, real estate in core areas or top luxury cars. But what can the virtual world use to show off, so as to show its noble status?


Ø  The answer is simple, it is the avatar of the social network. This avatar must be recognizable, cannot be copied, and has extremely high value behind it. Only NFT collections can meet this demand, which is the main reason behind its skyrocketing price.



l  And it is precisely because Azuki did one thing wrong that it lost its scarcity, so it went from prosperity to ruin.


Ø  The NFT project cannot be overissued precisely because it is a luxury item. But it is not like the luxury goods in the real world will be depreciated and damaged, and users will have the need for replacement. NFT is just a picture, and there will be no loss, but if it is not overissued, it means that as a project method, more income cannot be obtained, so it will fall into an endless loop.


Ø  In order to break this cycle, almost all NFT projects are looking for scenarios to build their ecology, hoping to continue to make profits through external cooperation and the launch of new IPs. Of course, Azuki is also doing this, so he recently launched a new NFT series called Element.


Ø  If Azuki chooses to be original, normally the market will choose to pay, but unexpectedly Azuki chose to copy himself. The newly launched Element series is almost indistinguishable from its own Azuki series, and they are completely indistinguishable at first glance. But the price is less than a quarter of the original price of Azuki, which directly lowers the bragging value of the Azuki series.


Ø  As a result, the price of Azuki plummeted, and at the same time, the overall avalanche of the NFT market came to a difficult time for the industry.



l  Azuki's move actually basically reflects the difficulties of the NFT industry.


Ø  On the one hand, the attributes of luxury goods will not change in the short term, and on the other hand, the team has to find a way to make their own blood and continue to make profits. We all know that the creation of IP is very difficult. Even if a successful team has created one popular IP, it is unknown whether it can create a second one. The road to continuous creation of IP is extremely difficult.


Ø  But as far as the current market is concerned, NFT projects have no other options.


Let us slowly observe whether there are other ways out in the future.



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