How do top collectors view the differences between Chinese and foreign NFT markets?

"OGtown" is an article column authorized by the Chinese cryptopunks community

Introduction of special guests

88 punk (punk 8306): Chen Xu, founder of Metaverse Think Tank MetaZ, former co-publisher of Coindesk China, China punksOG.

Brother Token (punk 1778): Since 2016, he has been focusing on research related to the blockchain industry. The author of the first NFT best-selling book in mainland China. Co-founder of the Cryptopunk Chinese Community. Token Punk Community Initiator

Noun_ 74 (noun 74): The founder of the Chinese Cryptopunks community, the founder of the noun Chinese ecological community; he has incubated and coached multiple Chinese NFT projects to the global community.

Jennie (punk 1369): CryptoPunk, Nouns holder, 18 years in the industry, focusing on Web3.0 infrastructure, layer 2, NFT track investment, NFT Native | Clonex, Doodle, BAYC holder

Element market Blue Star: Element market community director

Guest channel: nounsDAO, the world's top DAO community, with nearly 30,000 Ethereum in the treasury.

Opening:

Noun 74 ：Today we are a guest in the nounsDAO community to talk about the similarities and differences between Chinese and foreign NFT markets.

I want to start by talking about the differences between the Chinese nouns community and the global nouns community. This difference is common across the globe. The Chinese community has its own characteristics, but it is also inseparable from the global community. At present, there is a voice in the nouns international community, which believes that there is a certain split in the community in order to reduce the national treasury expenditure. I think having different voices in DAO is definitely a good thing. Because this is the embodiment of the DAO game mechanism, and it is also a feature of the decentralized community. But I also think that a DAO, or any centralized product, should have its own core philosophy. It will not be said that because of decentralization, one will go east today and go west tomorrow. On the contrary, it has a consistent concept, why we do this thing, what kind of concept and culture we adopt to manage this thing, this thing will not change. The original intention of Nouns to set up treasury is not to allow everyone to benchmark this bookvalue, but to use treasury to build a brand.

Finally, I would like to say something about the Chinese market and the international market of nft. In fact, China’s market is indeed huge. China has a population of 1.4 billion. At present, we can see that less than one in 100,000 people are participating in the international Internet and the international NFT market through VPN and other tools. In fact, it is illegal to set up a private VPN in China. If you are caught, you will be sentenced to at least three years in prison. Most people in China use private VPNs, that is, illegal channels to access the Internet. Therefore, if Nouns does real promotion in the Chinese market, the key is to find a legal form to participate in the Chinese market, so that it is possible to cover the local market of 1.4 billion Chinese.

Question exchange session: How do you view the similarities and differences between the Chinese NFT market and overseas NFT markets?

Brother Token (punk 1778):The contrast is very large. China’s NFT market, to use an inappropriate analogy, is like a eunuch, saying that he is not a man, he is also a man, that is, the status quo that has been castrated. The main reason must be from the regulators, because China has always followed the golden mean, and the degree of innovation must be incomparable with foreign countries, especially Western countries. Under such an atmosphere of cultural essence, such a situation occurs. Our NFT is also called a digital collection. Now with the closure of the Tencent Digital Collection platform, many WeChat public accounts have been blocked for domestic digital collections. Although there is no clear ban, it is also under a state of strict supervision. This is what makes the difference.

For this reason, I think there are disadvantages as well as advantages. The disadvantage is that we must go out of the NFT road with Chinese characteristics. The so-called Chinese characteristics cannot involve some major issues, such as financial security, and the regulators are mainly concerned about finance. Security issues, they may mistake NFT for it to have some FT characteristics, which may prevent it from threatening financial stability, there are such concerns. However, compared with FT, NFT has a much lower impact on financial stability. Although this is not so strict, compared with foreign countries, it is a stricter regulation.

According to my past experience, at present, the empowerment of traditional enterprises is not very optimistic. In the past few years, I have participated in some so-called currency reforms and chain reforms, but in the end, practice proved that they were not successful. Many people tried to use the concept of blockchain to empower some traditional enterprises, and everyone was ambitious at the beginning.

toady_hawk：This angle is very interesting, because in the United States, we also distinguish between digital collections and nft. The distinction is for marketing, not politics.

Brother Token (punk 1778):In the past three years, everyone has tried to empower traditional enterprises and empower traditional enterprises with tokens, but the results have proved to be unsuccessful. Now that everyone is trying to use NFT to empower traditional enterprises, I am not too optimistic about it. This is its shortcoming. In addition, the advantage of this situation is that a large number of WEB3 people have been reserved for China. Once there is a good regulatory relief in the future, this will be a large number of user groups, which is equivalent to a wave of leeks. So there are pros and cons.

88 punk (punk 8306) Chen Preface:There are actually two methods of market analysis in the Chinese market. First, we can see it as a market for Chinese people to consume overseas. It is like Chinese people traveling overseas with passports, and then staying in hotels, shopping, and eating overseas. This is the large number of Chinese people we see now. Including the friends who participated in a lot of punk today, they are actually doing some overseas consumption. Or you can call it overseas investment, which is a market.

The second market is a market that Chinese people produce and consume by themselves. This market is just mentioned by Brother Tongtong. This market is an incomplete market. So far, it can only provide a one-way sales function of buying and selling small pictures, and there is no secondary trading market that can fully comply with the regulations. So strictly speaking, this market is not complete, because for all commodities, although overseas, everyone may have their own ideas about NFT or digital collections, even before the emergence of digital collections, the sales and purchase of digital pictures and texts. However, the market itself allows all kinds of operations, especially second-hand, third-hand, and multiple transactions. This is completely fine, because this is the nature of commodities. But there is no such market in China.

Because of this perspective, I will have two inferences on this issue: First, for overseas projects, because of the characteristics of the Chinese market, it is actually very advantageous. This advantage is the existing and potential users in China who are very interested in NFT or encryption or WEB3, including the friends who came to share today, and this team is still expanding. But the objects they can invest in, the objects that can be consumed or freely consumed, or the objects that they think have both consumption and investment value, can only be selected from overseas projects. So this situation is very favorable for overseas projects.

The second inference is that there is no opportunity for the Chinese project itself, or the market will not rise? I was a co-publisher of Coindesk China before, so I have a relatively long-term observation of the Chinese market. For the Chinese market, the focus is not on how big the risks are. Because of the risks, the Chinese government has a strong ability to manage and control them, and basically all risks are within its scope of control. So when they consider whether a policy should be liberalized, they first look at how big the benefits are, in other words, how high the benefits are to balance the risks. For a market as large as China, as long as the benefits are high enough, the risks must be out of proportion to the benefits.

In the part of digital currency before, we observed and my personal conclusion is that China’s income is not so high, because the creation of a virtual currency and digital currency actually has an impact on the legal currency system, don’t Speaking of the U.S. dollar, let alone a non-internationalized currency like the renminbi, on the contrary, it is very risky.

But NFT is different. NFT is the best opportunity for China to release digital assets, and in this regard, it does not consume too much energy, and its carbon is very clean. So this is also in line with the direction of China's development. Second, it can release China's very rich IP, and among these IPs, many high-value IPs are state-owned IPs. Whether it is the Forbidden City or Dunhuang that we are familiar with, it is the same.

Therefore, for the Chinese government, opening up this market can be said to be a one-percent comparison. So it will definitely be released, so the Chinese market will definitely usher in an opportunity. We have to wait and see when this opportunity will explode, but I believe it will come. Thanks.

Jennie（punk 1369 ）：Regarding the Chinese market and the overseas market, it is divided into two parts. Part of it is the NFT marketplace that is mainly Chinese, and the other part is platform-based. It may be more biased towards some data types. You can think that China's NFT market at the current stage is related to the platform. It is a WEB2 or Internet platform. It is more about auctioning NFT or art collections. This is mainly discussed in the Chinese market. Something related to NFT. This is also what the previous guests mentioned just now, whether it is because of policy reasons, or because of other Chinese systems, or problems with management methods, it is such a stage.

But for the Chinese community and Chinese builders, they are now actively building something related to WEB3. Whether it is New York, the United States, including Singapore, there may be Chinese teams and builders all over the world, including Europe and Southeast Asia. The figure of the Chinese is over there.

I have a friend who is a domestic digital collection platform, and he is doing quite well. Once I communicated with him, he shared with me the portraits of the user groups who play domestic NFT and digital collections in China, and these WEB3 users we have come into contact with now do not overlap at all.

For the Chinese market, it is actually a de-financialized NFT market, so a large number of users still access these collections on a relatively centralized platform. Everyone has relatively little knowledge and understanding of wallets, on-chain data, digital assets, and blockchain-related things, as well as the NFT-related things we are really discussing. But now there are also Chinese teams actively building, doing things like user education in the market, and user guidance. Tell everyone how to combine real digital collections with your own wallet and more related things on WEB3.

So in the future, I am quite optimistic about the Chinese market, because this group of users has already been educated by the market and domestic data collection to a certain extent. The next step is to improve user education for some tools or some wallets, including lowering the barriers to entry from the product side, so that more people can be directly converted and involved in the future.

Element market Blue Star:The similarities and differences between the Chinese NFT market and overseas NFT markets. Personally, I feel that from the point of view of the trading platform, the NFT trading platform made by the Chinese has not caught up in market share. I only refer to the Ethereum market, and the NFT market made by foreigners has the largest market share, and we have been catching up. this one.

From the perspective of the project side, the data I have observed is willing to pay a lot of money for market value management. The operation is relatively good, and everyone will agree with foreign projects. In terms of operating data, everyone thinks that foreigner projects are more reliable. . But at the same time, the data shows that there are actually the same number of such running projects, whether they are for Chinese or foreigners. Chinese projects, Chinese-language NFT projects, will fluctuate more violently, such as the conclusion bear that I saw before, and cold rabbits.

The other one is from the perspective of the user's own motivation. Now the general reflection is that Chinese flippers are more interested in financial attributes. Moreover, the part of whitewashing in batches is mostly Chinese. Now the participants are not counted as domestic digital collections, but only domestic users of international NFTs. Now we have estimated that a data is about 5,000, and many of them with multiple addresses are participating in the primary market. Because of this, from the perspective of NFT projects, from the perspective of blue-chip projects, there are almost no Chinese NFT projects that are among the blue-chip projects.

But at the same time, the data given to me by Chinese friends should be two months ago, and the number of daily active users of Shuzang products was 2 million. Until now, this data is not very clear. So maybe in the future, I have been expecting a project in the Chinese-speaking area to become a blue chip. I haven't seen it yet, but there will definitely be one with the development of time.

Column introduction

"OGtown" is an article column authorized by the Chinese cryptopunks community. The community was established in 2021. It is the earliest private NFT community with the highest asset holdings in China. All holders must verify PUNK to join. At present, there are more than 200 cypherpunk holders in the community. It is the Chinese community with the most concentrated web3 celebrities. Most of the members are promoters and business leaders. Exchanges, established blockchain media, Chinese opinion leaders, whale nft collectors, etc. The community has good connections with top overseas OGs, and friends from all walks of life are welcome to establish contact with PunksCN to jointly promote the development and progress of the Chinese NFT field