World Crypto Global
- Written by: Lynn Tsang
- Wed, 09 Feb 2022
- Russian Federation
Celebrity NFT endorsements are hardly sought after by projects. But do these endorsements help in the long run? Covered: Jay Chou And Phanta Bears Buy Into Celebrity Jay Chou And Phanta Bears Soon after singer Jay Chou unleashed his PhantaBear NFTs on Instagram on Dec. 31, the collection became the most-traded in the world. As […] The post This NFT Bear Costs More Than a House appeared first on CryptosRus.
This NFT Bear Costs More Than a House
Celebrity NFT endorsements are hardly sought after by projects. But do these endorsements help in the long run?
Covered:
- Jay Chou And Phanta Bears
- Buy Into Celebrity
Jay Chou And Phanta Bears
Soon after singer Jay Chou unleashed his PhantaBear NFTs on Instagram on Dec. 31, the collection became the most-traded in the world.
As a Jay Chou fan and NFT skeptic, I decided this was the perfect opportunity for me to finally suspend my disbelief and dive into the world of these expensive, confusing digital assets.
Celebrity NFT effect
PhantaBear is a joint collection of NFT efforts between PHANTACi and Ezek, two garment companies. The collection includes 10,000 algorithmically generated NFTs, and holders get early access to the Ezek Entertainment Metaverse and other Ezek Club benefits.
PhantaBear’s floor price is 3.88 ETH, up 1253.85% from the first day of the sale. The lowest price listed (non-auction) was 3.075 ETH, and the highest price sold was 148 ETH.
With prices increasing and a huge potential upside, I decided I wanted one.
After looking on OpenSea, however, I found that its number of buyers and transaction volume had been declining and was not stable.
Other NFT collections, such as BAYC (Bored Ape Yacht Club), were more stable.
Trade & Buyers Status of PhantaBear
I tried to find out why.
Recommended: What Is Phanta Bear NFT?
According to the official ROADMAP, the PhantaBear project will include a virtual entertainment metaverse with concerts. While this is clearly an attempt to show the project and NFT ownership will have long-term benefits, the lack of details looked unconvincing.
Once the novelty of a celebrity project waned, PhantaBear’s trading volume slipped.
Not all NFT projects are like this. BAYC NFTs, for example, have a variety of ways to play, clear copyrights, and many peripheral goods like T-shirts. This creates an ever-evolving community and some continual aspects of novelty.
With the product not justifying the price, I looked for more affordable collections and came across Meebits and Loot.
Unusual Projects: Meebits and Loot
Meebtis and Loot both started growing in value since Jan. 11, the same time as the launch of LooksRare — the NFT marketplace that recently surpassed OpenSea in terms of the trading volume.
Meebits are 3D voxel characters. Their main draw has been their use, with unique, verifiable ownership, and they are popular among Cryptopunks users.
Loot is a collection of randomly generated adventure game objects written out on cards. If you think the idea is abstract, you’d be right. There is currently no game where you can employ your purely lexemic warhammers, adamantine rings, or dragonskin armor—although (as of Jan. 25) they’ll cost you at least 2.1 ETH.
Trade & Buyers Status of Loot & Meebits
Besides their price, however, I noticed another problem with these projects. According to the transaction data from LooksRare, there are identically numbered NFTs trading back and forth between two identical addresses.
LooksRare awards 2,866,500 LOOKS per day to all trading users. If you trade, more you get more. So in order to get the mining reward, users create fake transactions. Created a LooksRare bubble.
LooksRare – Meebits #10137 Activity
After learning about all three collections, I realized I was still not sold on NFTs, despite my love of Jay Chou, adventure games, or Lego-like figurines.
Some thoughts on NFTs
I noticed that recently popular NFT may be influenced by celebrity publicity and FOMO, like PhantaBear and NBA Top Shot. Undeniably, celebrity publicity is a good way to make the NFT quickly rise in value, but if the NFT doesn’t have a value in itself—which is an abstract concept—the value will drop quickly.
Recommended: What Is The Bored Ape Yacht Club?
The post This NFT Bear Costs More Than a House appeared first on CryptosRus.
