Original Source: Fenbushi Capital

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current competitive situation

Opensea has undoubtedly become the "Taobao" in the NFT field at this stage, covering PFP, game props, artwork, virtual land and all other NFT categories. Due to the earlier entry time and long-term hard work in the industry, Opensea has almost monopolized all supplier resources, thus covering all NFT categories. Opensea, which was established in February 2018, needed to lobby the project parties one by one to settle on the platform in the early days, but now it seems that the project parties have taken the initiative to launch Opensea. Opensea has changed from quantitative to qualitative in the accumulation of TO B users. Although it is not cost-effective in terms of taxes and gas fees, since Opensea has long controlled the supply side, users can only purchase products in a large and comprehensive market. Although Looks Rare and X2Y2 are trying to carry out a hot start through the token mechanism, if they cannot attract a large number of B-end users to settle in in a short period of time, they will not be able to overtake on corners. As for whether such projects can compete with Opensea in the future, it depends on the follow-up development.

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Possible future formats

So is it possible to bypass Opensea and conduct differentiated competition? Here are several novel ideas for reference.The first idea is to segment the NFT trading market.If Opensea is compared to "Taobao", will there be a market like "Vipshop" or "Dewu"? In fact, there are already similar products or prototypes at this stage.

For game props NFT, currently large-scale blockchain games are basically equipped with their own trading markets, while small blockchain games are gathered in different game ecosystems, such as Gala, Treasure DAO, and IMX ecosystems. Take Treasure DAO as an example,Treasure DAOIt is a decentralized NFT ecosystem, built on the second layer chain Arbitrium of the ether, the goal is to integrate NFT, Defi, and Gamefi, and provide bridges for many closed NFTs to connect to games and metaverses. Treasure DAO's NFT market has gradually integrated external Defi games such as Smol brains, Body, and Sees of Life, in addition to its own Bridge World game props. $MAGIC as the token of the ecosystem will run through every project on the Treasure Market. It is worth noting that the game props on Treasure DAO maintain a consistent pixel art style, and a game ecology with a unified style will become a trend in the future.

For PFP NFTs, the situation is different. PFP NFTs are divided into different echelons:

• The first echelon is early top NFT projects such as BAYC, Cool Cats, and Doodles;

• The second echelon is NFT with its own IP and KOL traffic, such as Jay Lun Xiong and The Heart Project;

• The third echelon is the grassroots type NFT. This type of NFT may have exquisite style and innovative use cases, but it may be ignored due to lack of traffic.

At present, many project parties (especially the third echelon) are looking for a platform with a consistent painting style and centralized exposure. This platform can be understood as the Metaverse.Worldwide WebbA display platform is provided for such NFTs. The NFT art style integrated by Webb is all pixel style. Players wearing PFP can also gather for metaverse mining, disco dancing, treasure hunting, street bombing and other activities. In the future, it is expected that Worldwide Webb can develop an in-game trading market, so that players can also have an immersive shopping experience during the game.

The second way of thinking is the self-incubation mode, that is, the transaction platform incubates and supports the project party, and the forms include but are not limited to providing services such as contract deployment, publicity and promotion, resource expansion, and security prevention and control. As a condition, the project party can only start or sell on the trading platform. In the era of web 2.0, this model is called JD self-operated or Tmall self-operated. This self-incubation model may be able to solve many chaos and pain points in the NFT industry. For example, the project party cannot correctly deploy the contract for NFT casting, resulting in an infinite delay in the casting time. Another example is that the project party made some omissions in security control, which led to Discord being hacked and users suffering losses for nothing. At this time, the trading platform may be able to provide a one-stop solution for the project party to promote progress more quickly, efficiently and safely. Secondly, a strong NFT trading platform can better attract and empower project parties. When the project party has a certain influence, the trading platform can also receive positive feedback, and make progress and prosperity together. recentOpendaoReady to launch an NFT launchpad project called 721 Starter. Its starting point is similar to this self-incubating model.

To sum up, the current trading market facing Opensea's competition is still facing a big test, and it needs to accumulate strength and accumulate strength. The pass-through mechanism may increase the utilization rate of users/suppliers in a short period of time, but in the long run, it cannot retain users, thus establishing strong barriers. Innovative projects can consider subdividing the NFT trading market and the self-incubation model, bypassing Opensea to create a new format.