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In the past year, a large number of well-known film and television stars and sports stars have stepped into the NFT field, such as bayc holder Curry, Justin bieber, Madonna, Serena Williams, Paris hilton, Snoop Dogg, etc.; traditional artists and cultural companies are also in succession Release NFT, such as DC, Adidas, Bilibili, Pepsi, Shawn Yue, Cai Guoqiang, Fang Lijun, Murakami Takashi, Jay Chou, etc. At present, NFT is mainly a transaction based on FPF and digital art, but in the future, everything will be on the chain, and everything can be NFT.

In the year when NFT is making great strides, there are also many problems in the NFT market: such as poor liquidity, high volatility, market chaos, and whether the NFT boom is sustainable? How big is the capacity and prospects of traditional artworks on the chain, Metaverse, and digital artworks? This is worthy of our deep thinking and exploration.

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Status of NFTs

The financial market is sunny and cloudy, and NFT, as an investment product, cannot survive alone. With the recent pullbacks of Bitcoin and Ethereum, the investment sentiment of NFT investors is also declining.

-NFT blue chips are updated quickly, and there are always new things chasing old things. It may be a blue chip in the first half of the year, but no one cares about it in the second half of the year, gradually losing liquidity.

-The market value of the NFT sector is relatively weakly affected by the broader market, and the retracement is smaller than that of BTC (BTC price: 1/5-29/5, $39000-29000, a 39% correction; NFT total market value: 1/5-29/5, 35.5 billion -25.7 billion, a correction of 28%).

- Another reason for the decline has a lot to do with ETH pricing. ETH fell, and NFT prices also fell, forming a double drop in a bear market.

-The number of NFT holders has been rising steadily recently, mainly because freemint has become popular in the past two months.

- But the number of traders fell in tandem with the broader market in May.

- Judging from the data on the chain, the most popular scene on the chain or in web3 is NFT casting and trading. Opensea has almost become the platform with the highest daily gas consumption on the Ethereum chain.

-According to the "2022-2028 China Art Auction Service Industry Development Status Survey and Market Analysis Forecast Report" released by Zhiyan Consulting, the global art market will rebound strongly in 2021, with total sales increasing by 29.94% compared with 2020, reaching 651 billion, surpassing pre-pandemic levels in 2019. And this is only auction-based statistics. In fact, the turnover of unstated works of art and collections in the world may be hundreds of billions of dollars. Compared with the NFT market, it seems that everything has just begun.

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Current status of NFT platforms

Charging mode (platform):

-opensea charges sellers 2.5% sales tax, looksrare charges 2%, and X2Y2 currently charges 0.5%; Foundation charges issuers 15% for the first time, and users charge 5% for the second transaction.

- Mainly mint charges (or freemint), and royalties (0-10%) are charged for each transaction in the secondary market.

In the past year, opensea's total transaction volume was $30,349,447,992, and based on a 2.5% transaction fee per transaction, opensea's revenue was $775 million. Due to the monopoly of opensea's centralized platform and the revenue distribution model dominated by the web2 platform economy, the team exclusively enjoys the track revenue, and platform users do not get any revenue, which has aroused dissatisfaction among many WEB3 users. Therefore, in the past period of time, some WEB3 NFT trading platforms have emerged, and they are challenging Opensea's industry monopoly in the form of 100% revenue distribution to the community.

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• Note: In January 2022, OpenSea announced the completion of $300 million in Series C financing, and the company's valuation soared to $13.3 billion. Whether it is Looksrare or X2Y2, it is currently a high-quality target with a low market value for the NFT track. Below we will Analyze their differences one by one.

K-line analysis

• team

The prices of X2Y2 and Looks have both fallen by more than 90% since they were listed. Compared with Looks, X2Y2 has been sideways for a longer period of time, and the bottom support is stronger.

team

X2Y2: According to rumors, it is a leading media team in China.

• Token Economic Model

x2y2

The team does not comment here, the benevolent see benevolence, and the wise see wisdom.

Token Economic Model

The total circulation is 1 billion X2Y2, and 92 million have been destroyed (the unclaimed part of the airdrop), and the actual total is about 908 million.

1. The ILO will sell 15,000,000 (1.5%) X2Y2 tokens in 1,000 shares, 1.5ETH each, and a total of 1,500ETH will be raised. (Calculated based on the price of Ethereum at that time, the public offering cost was about $0.3, and it has been broken for several days now)

2. After the fundraising is over, 1500ETH+1% of the total amount of X2Y2 will be added to the uniswap LP pool and permanently locked.

3. The X2Y2 tokens participating in the public offering will be linearly unlocked within 360 days from February 14.

4. Team tokens will be released in 12 phases after being locked for 6 months, and the first phase will be released in August. The team was unable to obtain any income through the sale of tokens during the half-year operation of the project, which is worthy of spirit and courage.

Looksrare

5. The daily selling pressure generated by X2Y2 pledge rewards and transaction rewards is about 1.2 million, and the daily selling pressure is estimated to be 240,000 US dollars based on the current price of 0.2. What needs attention is that its staking rewards will be reduced from the current daily 600,000 to 97,000 on June 18.

6. Token usage: Pledging X2Y2 can share 100% of platform fee income.

• At present, the daily pledge reward of Looks is 230,000, and the trading mining reward is 530,000, that is, the daily selling pressure is 760,000. According to the current price of 0.5, the daily selling pressure is 380,000 US dollars.

Token usage: Pledging Looks can share 100% of platform fee income.

• Transaction volume comparison

The data on May 29 shows: opensea, Looksrare, and X2Y2's NFT market share (remove the brush volume) are 85.2%, 8.4%, and 6.4% respectively; the transaction volume is $32M, 2.6M, and 1.6M.

• User comparison

Attracted by X2Y2's 0.5% transaction fee, X2Y2 has recently begun to surpass Looksrare in terms of the number of users, and is expected to maintain it for a long time.

P/E price-earnings ratio comparison (estimated by brushless volume)

(P/E ratio = price per share (P) / earnings per share (E) = market value of the company / net profit)

• X2Y2: Calculated on the basis of an average daily transaction volume of 3 million US dollars and a transaction fee of 1%, the daily fee income is 30,000 US dollars, and the annual profit is 11 million US dollars. The current market value of X2Y2 is 165 million US dollars, then the estimated P/E=165 million/11 million=15

Both staking rewards are stepwise reductions. Since X2Y2 entered the market late and the mining rewards started late, the transaction mining rewards and staking rewards are now higher than Looksrare. X2Y2’s staking rewards will be on June 18, and the daily output will be reduced from the current 600,000 per day to 97,000.

Summarize

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Summarize

2. From the current point of view, it is a very wise decision for Looksrare not to fight a fee price war with X2Y2. In the case of sticking to the 2% fee, the income is still several times that of X2Y2, and the price-earnings ratio is relatively lower than that of X2Y2. It can be bought in some exchanges, the trading liquidity is better, and it is relatively more stable.

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3. If Looksrare is the blue chip of the NFT platform, then X2Y2 is a potential stock in the NFT platform. The current total market value is only 1/3 of the former, and it will become more explosive in the later stage.

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1. Why write X2Y2 and LOOKS: We should focus on the long-term track, high-quality interest-earning assets, and the profit distribution method that is most suitable for web3 users.

2. If you recognize the NFT track and its future development potential, then holding some NFT platform tokens is a good choice, and perhaps one of them is Binance in the NFT section.

3. What is an excellent token economic model?

- Fair distribution, no private placement round, everyone costs the same.