"Jay Lun Xiong" plummeted 96.6%, why did the NFT with celebrity goods become cold?
Original Author: Kyle
Original Author: Kyle
The NFT market has gradually entered a "cooling off period" after experiencing a brief outbreak. According to NFTGO data on June 24, the total market value of the NFT market has fallen from a high of US$36.6 billion in February this year to US$22.6 billion, a drop of more than 38%. The single-day transaction volume of NFT fell from a high of 3.394 billion US dollars to about 150 million US dollars, a drop of 95.5%.
Under the overall downward environment of the market, the special NFTs associated with entertainment stars in the NFT market have not shown sufficient resilience. The floor price of the Phanta Bear NFT series associated with Jay Chou, the king of Chinese music, has fallen by 96.6% from the high point, and the liquidity is relatively scarce, with a single-day transaction volume of only more than 20,000 US dollars.
It is not an isolated case of celebrity NFT with goods.
Previously, football superstar Lionel Messi and pop idol Madonna (Madonna) have issued NFTs designed around their own images, but due to the small number of these NFTs issued and the relatively high prices, ordinary collectors and fans are discouraged , did not form a community effect; and entertainment stars Edison Chen, Shawn Yue and others issued a large number of NFTs, but because of the creative design was not recognized, or lack of continuous empowerment, these NFTs also fell below the issue price after a short period of hype .
At present, more and more entertainment stars and celebrities have participated in the production and distribution of NFTs, and the forms of NFTs have also expanded from pictures to music, videos, etc. "One-shot deal".
In the eyes of industry insiders, the high threshold of audience recognition and transaction is a major reason for the poor effect of celebrity NFT. Most of the participants in celebrity NFT are "scalpers" and NFT investors, and most of them are not fans of celebrities. There is no motivation for long-term holding; in addition, star NFTs often lack empowerment during subsequent operations, resulting in a gradual loss of NFT value. Some users believe that star NFT can design some gameplays linked with the star himself in operation, which will help form a "long tail effect".
The floor price of "Jaylen Bear" plummeted 96.6%
Bitcoin fell to the $20,000 mark, and the encrypted asset market has entered a bear market. The NFT market, which was bustling at the beginning of the year, has also subsided, and it is no longer the previous hustle and bustle.
According to NFTGO data on June 24, the total market value of the NFT market has fallen from a high of US$36.6 billion in February this year to US$22.6 billion, a drop of more than 38%. The single-day transaction volume of NFT fell from a high of 3.394 billion US dollars to about 150 million US dollars, a drop of 95.5%.
In the deserted market environment, blue-chip projects such as CryptoPunks, Bored Ape Yacht Club (BAYC Boring Ape), and Otherdeed are the ones that users trade more, while most of the NFT projects that were issued in a rush to take advantage of the previous market heat have fallen into a state of exhausted liquidity. In the embarrassing situation, there are even some who are simply ignored.
In the increasingly huge NFT market, NFT projects directly issued by entertainment stars and idols or indirectly on platforms can be regarded as a special branch. Since stars and celebrities from all walks of life have their own traffic and influence, NFTs related to them are often eye-catching at the start-up stage. However, with the overall market downturn, such projects have not shown enough resilience in the cold winter of the market. Phanta Bear The representative star NFT sector has been in a state of continuous price decline and sharp drop in trading volume.
Phanta Bear is literally translated as "Phantom Bear" in Chinese, but in the Chinese-speaking community, it is more widely known as "Jay Lun Bear", because this NFT series is closely related to Jay Chou, the king of Chinese music, and has been supported by Jay Chou's personal social media. platform.
Phanta Bear was released on January 1 this year. It consists of a series of 10,000 randomly generated trendy bear images. The NFT of each bear image shows different outfits and actions. The initial price is 0.26 ETH (approximately $984 at the time). The project was co-initiated by Jay Chou and his friends' fashion brand PHANTACi and decentralized entertainment platform Ezek. The latter's parent company Starvision Entertainment Ltd. (SEL) was founded by Jay Chou's friends Liu Genghong and Geng Zhan.
Not long after the release of Phanta Bear, Jay Chou replaced his personal social media avatar with this NFT image, with the accompanying text "Brother 2022, change the avatar for a few months first, and feel the feeling of the metaverse."
Jay Chou personally stood on the platform, and Phanta Bear became a phenomenon-level project for a while, and NFT collectors, investors, and Jay Chou fans and fans became the main audience. On January 7, the floor price of Phanta Bear in the secondary market was as high as 6.39ETH (approximately US$21,700 at the time), which was 22 times higher than the issue price. On that day, the market value and trading volume of the NFT series reached historical highs, with a total market value of $199 million and a single-day trading volume of more than $46 million.
However, Phanta Bear's popularity didn't last long. By the end of January, its floor price had dropped to 1.4ETH, its total market capitalization had also dropped to $74.11 million, and its single-day transaction volume had dropped to $1.7 million. According to Phanta Bear NFT holders, after buying this series of NFTs, they can join the official Discord community, but there has been no actual membership rights, and the follow-up official team has not given too much power to the NFT, so in "a After the popularity of "Wave Flow" passed, the price of this series of NFTs continued to fall.
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The market value and transaction volume of the Phanta Bear series of NFTs continued to decline
In the bear market cycle, the current floor price of Phanta Bear has dropped to 0.65ETH. Due to the sharp drop in the price of ETH compared to the beginning of the year, the current floor price of this series of NFTs is equivalent to about $730, falling below the issue price of about $984 at that time. In USD terms, the Phanta Bear NFT is down 96.6% from its all-time high.
The popularity of Phanta Bear is not as good as before, and the market liquidity is relatively scarce. According to NFTGO data, on June 23, only 29 transactions occurred in this series of NFTs, with a transaction volume of 20,187 US dollars. In the case of poor liquidity, it is not easy for holders to sell quickly.
Star "bring goods" NFT popularity is difficult to continue
Even with the blessing of "Asian King", Phanta Bear was gradually forgotten by the market after a brief explosion, and this is also a microcosm of the NFT project that stars bring goods.
Since the concept of NFT was hyped last year, it was once regarded as a combination of technology and fashion. In this context, many stars and celebrities at home and abroad have participated in the production and distribution of NFT. From the perspective of sustainability, most of the NFTs endorsed by celebrities can only maintain short-term popularity, and it is difficult for blue-chip projects such as BAYC Boring Ape to continue to gain trading enthusiasm.
The reason is that, on the one hand, the issue of NFT under the influence of celebrities is different from that of conventional NFTs. Many celebrity NFTs are relatively rare and sold at a high price, making it difficult to form a group community effect; on the other hand, most celebrity-related NFTs are issued by Brokerage companies or agency companies issue on behalf of these companies. These companies often lack planning for the follow-up operations of NFT projects and do not have professional empowerment capabilities. As a result, this type of NFT has become a "one-shot deal". After purchase, there is no other use except collection and hype .
On August 5 last year, the image of Argentine football star Lionel Messi was designed as a Messiverse series NFT. Messiverse was created by Boss Logic, a well-known Australian illustrator. Messi was designed as a king, a superhero and a Greek giant in his works. The four works were named "The Golden One", "The Man From Tomorrow", "The Man of The Past" and "The King Piece".
As a Ballon d'Or winner and contemporary football superstar, Messi's influence cannot be underestimated. However, due to the small number of NFTs issued in the Messiverse series, the auction price of a single NFT work can reach millions of dollars, which discourages ordinary NFT collectors or Messi fans. After the initial sale, there has been little outside discussion of the NFT series.
The same example is the "Mother of Creation" (Mother of Creation) NFT launched by pop icon Madonna and encrypted artist Beeple in May this year. The NFT series has 3 different Madonna image videos. It took a year to create, and the connection between "creation" and "motherhood" is shown through visual 3D effects, and each video is one minute long. However, due to the scarcity of circulation, it has become an NFT series beyond the reach of ordinary users.
Of course, there are also NFT projects with large circulation and wide circulation such as Phanta Bear. In February of this year, the fashion brand CLOT owned by the well-known actor Chen Guanxi released the "ALIENEGRA x EDC" series of NFTs, with a total of 2072 pieces. This series of NFTs is based on the "alien" image NFT created by Edison Chen. The initial price 0.1888 ETH ($594 at the time).
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"ALIENEGRA x EDC" Series NFT
This series of NFTs was also snapped up during the launch period, but because the follow-up release team was almost in a state of "stocking" the project, the price of the "ALIENEGRA x EDC" series of NFTs quickly fell below the issue price. In the current secondary market, the floor price of this series of NFTs is only 0.07 ETH (about 80 US dollars), which is 86.5% lower than the issue price, and there is almost no liquidity.
In addition, Hong Kong and Taiwan film and television star Shawn Yue also launched the NFT project ZombieClub before. This series consists of 6666 pixel monster NFTs, and the initial casting price is 0.666 ETH. ZombieClub has done a lot of planning, including the establishment of a decentralized autonomous organization DAO, organizing offline parties, building GameFi, etc., and even announced in June this year that it will cooperate with HTC to launch a 3D Metaverse project. However, judging from the progress, ZombieClub still stays in the category of avatar-like NFTs, and no actual application has yet been implemented.
Although there is Shawn Yue's endorsement, this series of NFTs cannot escape the fate of "breaking". As of June 24, the floor price of ZombieClub NFT was 0.43 ETH, and there were only 21 transactions in the past 7 days.
How does star NFT maintain vitality?
Entertainment stars bring their own IP, but the effect of their NFT is not good, because the NFT blessed by most stars is limited to collection scenes, at most it is a digital peripheral product. Value is realized through the encrypted asset market. However, the overlap between these two audience groups is low, fans have limited understanding of NFT, and NFT investors are more willing to invest money in high-liquidity blue-chip projects.
A fan once expressed his confusion on social media, "I would like to open a music platform membership or buy concert tickets to listen to my favorite singer, that is a realistic experience, but I still don't understand the meaning of buying NFT. "He believes that NFTs of star categories have a natural traffic advantage, but fans need to understand the difference between NFTs and other peripherals.
It is worth learning from that the well-known Japanese artist Takashi Murakami and RTFKT Studios jointly released the "CLONE X" NFT project. This series covers 20,000 NFT characters, and each character has a 3D skeleton system. This means that the owners can use these characters in AR, Zoom or games, and they can also be used as images to enter the virtual world of the Metaverse in the future. This NFT series created by a well-known artist has superimposed application value on the color of art and technology. After its release, it quickly became popular. It currently ranks 8th on the list of NFT projects with a market value of 512 million US dollars, and the floor price is 9.68 ETH.
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"CLONE X" series NFT
An NFT collector who did not want to be named told Honeycomb Tech that BAYC Boring Ape’s club-style operation model is worth learning from when the star team operates NFT. Long-term empowerment, including airdropping new NFTs, planning metaverse virtual space, etc. These initiatives convey a message to the community that holding BAYC is useful, which is why this series of NFTs has maintained high market popularity and prices.”
There are also some stars who have begun to explore the deep integration of their profession and NFT technology application.
Up to now, many singers and stars have released music NFT, which has broadened the creative form of NFT. Last year, Canadian R&B singer The Weeknd released its first music NFT, which incorporated NFT's copyright confirmation function, and finally faced the audience in the form of auction and lottery. This release brought it 2.29 million US dollars in sales.
In March of this year, Snoop Dogg released a limited edition of 1,000 music NFT "Death Row Mix: Vol. 1"; in addition, Hu Yanbin's "Monk" 20th anniversary vinyl NFT and Tengger's "Paradise" Anniversary digital vinyl records have also been released on Tencent Music's "TME Digital Collection Platform". Compared with avatar NFT collections, these music NFTs are more experiential.
