The price of portrait NFT hits a record high. How can a picture fetch such a high price?
The following article is from the vernacular blockchain, the author vernacular blockchain.
Recently, the news of “the most expensive profile picture in history” spread all over the world and aroused widespread attention.
This is how things are. Justin Sun, the founder of TRON, took a Tpunks avatar at a sky-high price of US$10.5 million and said in his circle of friends that it may be the most expensive WeChat avatar ever made by human beings.
When everyone does not understand why a picture is so expensive, the question that should be answered most is: Why can a picture be so expensive? Today we will discuss this issue together…
01. Why can a picture be so expensive?
When it comes to the NFT encrypted avatar market, it can only be described as “crazy” at present. Taking a recent new project “Ape Head” as an example, OpenSea data shows that its sales have exceeded 400 million U.S. dollars, the number of transactions reached 5,400, and the lowest price reached 160,000 U.S. dollars. In other words, its price soared more than 500 times in 4 months.
In 2020, the market size of NFT is only 338 million U.S. dollars. By the first quarter of 2021, this figure has become 1.5 billion U.S. dollars. Coingecko data shows that the current NFT market size has exceeded 20 billion U.S. dollars (about 130 billion yuan)
According to the latest data from OpenSea, the TOP10 sales in the past month generated about 690,000 ETH in total sales equivalent to 2.7 billion US dollars, of which the 6 projects ranked 1, 3, 4, 6, 7, and 9 were all The encrypted avatar NFT project, sales accounted for 64.5% of the total TOP10, or about 1.74 billion US dollars.
The encrypted avatar NFT continues to be popular for its scarcity + punk culture + narrative + community + representatives of new commercial values + innovative gameplay.
Andrew Kang, the founding partner of Mechanism Capital, a blockchain investment institution, has written an article that compares NFT avatars to luxury goods, artworks, and high-end real estate, and hints that the NFT market will exceed $40 billion in the future.
Many people have been thinking about similar questions for a long time. Why is a simple avatar composed of a few hundred pixels worth so much money? What are the people thinking about buying pixel avatars at sky-high prices? At present, we can see that the more obvious reasons are as follows:
a. Cryptopunk spirit
The pixel avatar originated from the spirit of cryptopunk. The early creators of encrypted pixel avatars have said that this is actually to express a kind of “punk spirit”, and they want to reflect this special culture in Punk’s appearance. The London Punk movement in the 1970s felt like the right aesthetic.
Many of the cryptocurrencies that we know well, such as Bitcoin, were born under the influence of the early cryptopunk spirit and were promoted by a group of geeks full of cryptopunk spirit.
b. A symbol of meta-universe identity
In the unconscious development of human society, modern society has gradually entered the digital age. Metaverse, as one of the hottest concepts in today’s scientific and technological circles, has triggered diversified discussions across industries, fields, and disciplines.
In the future, the first step to enter the meta-universe supported by encryption technology is the need to enter the identity recognition” to match the identity of the virtual world with the current world.
Payment giant Visa spent US$10,000 to purchase encrypted pixel avatars and announced its entry into the NFT field. One stone stirred up a wave of NFT craze. Visa directly took the actual action to “finish the acquisition”.
This not only represents Visa’s recognition of the punk spirit behind the NFT field and encrypted pixel avatars but also its best declaration of entry. Just like Justin Sun’s acquisition of the Tpunks head at a high price, the TRON ecosystem he founded is also of far-reaching significance.
c. Symbol of community influence
In the new business value, community influence is particularly important. Encrypted avatars have now become favorites of head leaders in the encryption field, big Vs, and other enthusiasts. Hanging avatars on social platforms is a symbol of status and can enhance its influence in the community and the industry.
Many people see it as a pass to an encrypted “club”. In the past, joining some top clubs required various thresholds to prove that you were eligible to enter.
And now only a verifiable encrypted avatar is needed because only those at the top of the encryption circle who know it in place will recognize its value and make a huge purchase. People in this circle start to build groups with the same hobbies. The encrypted avatar is the best pass to enter this group and this circle.
In general, the main factors of the value and popularity of the encrypted avatar NFT are scarcity + punk culture + narrative + new commercial value + community role + innovative gameplay + financial tools, and so on.
02. What’s the special value of Tpunks, which shoots high-priced avatars when it goes online?
Let’s talk about the project Tpunks where Justin Sun’s astronomical avatar was bought at a high price.To put it simply, Tpunks is the first NFT avatar project in the TRON ecosystem, and the target is CryptoPunks, the most popular NFT avatar project in the encryption field.
The highest avatar currently on sale at Tpunks
In addition to the crypto-punk spirit, meta-universe status symbol, and scarcity of the collection fun and use-value of the encrypted avatar itself listed above, compared to other encrypted avatar projects, the unique value of Tpunks is mainly reflected in the following points :
1. Expansion and innovation
It is understood that Tpunks has expanded and innovated in terms of pixel count based on CryptoPunks, such as adding Justin Sun Tpunks and will actively explore and innovate to make Tpunks avatars more diverse and interesting.
2. Get the head bonus of TRON Ecological NFT
As the first NFT avatar project of TRON, Tpunks has supplemented the deficiencies in the ecology of TRON’s NFT, which is one of the big reasons why it has gained the favor and attention of TRON founder Justin Sun.
Data from the TRON browser TRONSCAN shows that the total number of TRON accounts has exceeded 52 million, the number of transactions has exceeded 2.3 billion, and the number of active addresses has reached 1.0797 million. TRON is already one of the most active blockchains in the world.
As a head NFT avatar project, it can naturally get the tilt and support of active users and funds in the TRON ecosystem.
3. Greater room for growth
“Have you missed the opportunity of CryptoPunks? Do you want to have another chance? (A tribute to CryptoPunks Canada)”, the founder of Tpunks wrote in the description posted on his official website:
Although CryptoPunks were much cheaper last year than they are now, I didn’t have the money to buy them, so as a challenge, I wanted to make them “interesting enough.”
Therefore, we came up with the concept of Tpunks. Tpunk contains all of CryptoPunks and brings many different features, such as Justin Sun Tpunks and more attributes.As we all know, sometimes children are much cooler than their parents. Payment giant Visa’s avatar of the same style is only 10,000TRX on Tpunks.
What they want to express is that several NFT avatar projects such as CryptoPunks are already very expensive, most people have missed these bonus opportunities, and Tpunks has just started, and there will be more room for growth (currently The floor price of CryptoPunks is 99ETH, while the floor price of Tpunks is 10000trx).
03. What does APENFT bring to Tpunks?
APENFT, as a strategic partner of Tpunks, previously mentioned in the vernacular report on APENFT, APENFT, known as the ARK Ark Star Fund in the NFT field, has built the world’s top art through NFTization and blockchainization of the world’s top artworks The bridge between artists and blockchain has brought real value support to the encryption field.
Recent news we have seen:
On September 2, APENFT and Tpunks reached a strategic cooperation. On September 3, the NFT avatar sales event jointly launched by the APENFT Foundation and Tpunks was officially launched at BinanceNFT MarketPlace. Here, 50 Tpunks avatars will be sold, of which 40 will be sold directly, the lowest price is 6BNB, the remaining 10 will be sold through auction, the starting price is 2BNB. Avatars jointly launched by APENFT and Tpunks on Binance NFT Market
The strategic cooperation with Tpunks and the launch of a series of activities this time are APENFT’s “pure virtual Meme project with wings of actual value”? The value that APENFT brings to Tpunks is reflected in the following two points:
1. Tpunks gets top art genes from APENFT
After Tpunks is supported by APENFT, it can integrate the essence and genes of top artworks into encrypted avatars with more appreciation value and collection value. At the same time, the world’s top encrypted artists have also obtained a brand new creative platform. In the future, we will see Many “sky-priced” encrypted pixel avatars from top artists have been exhibited and auctioned.
2. The two-combined artwork avatar can be added to APENFT to become a new top collection
The sky-high avatar purchased by Justin Sun was donated to the APENFT Foundation, which became another new asset under the governance of the Common District Center of NFT holders.
In the future, with top art genes, or priceless avatars from the hands of top crypto artists, they will also enter the APENFT Foundation one after another to become the world’s rare top collections.
The rapid rise of the NFT market may not only grow into a giant with a trillion-dollar market size but also demonstrate a unique culture, identity, and community. However, there are still many neglected corners of the NFT market.
As the era of the next-generation Internet “meta-universe” that global technology giants such as Tencent and Facebook are scrambling to deploy is getting closer and closer to us, as a status symbol of the cryptopunk spirit, the value of encrypted avatars will gradually emerge.
As one of the prerequisites for entering the meta-universe, more and more people will recognize its value in the future. Tpunks has just germinated and has received great benefits and support from the TRON ecosystem, allowing it to compete with the market head NFT avatar project, while also gaining more valuable features and room for growth.
As the Tpunks team said, Tpunks is based on CryptoPunks and pays tribute to CryptoPunks, hoping that it can be better than blue.