NFT Trading Cards: New Collection Mode?
One-of-a-kind items always attract the attention of collectors, and they are willing to pay top dollar for their collection, whether it’s paintings, baseball cards, postage stamps, antique cards, and rare currency. Now, with the development of blockchain technology, these projects are entering the digital realm.
On several different blockchain networks, items such as paintings, baseball cards, postage stamps, antique cards, and rare currencies are referred to as “unique digital assets,” or non-fungible tokens (NFTs). The introduction of blockchain technology means that the authenticity and ownership of these items can be easily verified, especially as scarcity plays a vital role in asset valuation.
In March, Britain’s most iconic street artist, Banksy, destroyed a £70,000 artwork “Morons” (Idiots) at an undisclosed location in Brooklyn, New York. A piece of work was made into NFT, because he believes that digital art form will be the future of the industry. The connotation of this 70,000-pound work is designed to mock collectors for buying expensive artists, and the NFT was eventually collected and stored for nearly $400,000.
As Anita Moore, CEO of Blind Boxes, an NFT digital artwork platform, said, through the concepts of decentralization and authenticity verification, NFT changes the way people think about ownership and value.
What are NFT trading cards?
NFT trading cards are a virtual representation of underlying assets. Since all information is stored through the blockchain, NFT trading cards can be endowed with immutability and public verification of ownership. Even if the physical version is lost or destroyed, as long as the NFT exists, then You can always “survive” on the blockchain.
People can create tokens on Ethereum, or other smart contract blockchains, and use these tokens to represent virtual representations of these NFT trading cards. These tokens are “non-fungible” and can contain NFT transactions. Card metadata, such as transaction card images, can all be stored, viewed, and transferred through an NFT-enabled wallet.
People can create, buy, and sell NFT trading cards on many platforms, some of the largest trading platforms currently include OpenSea, SuperRare, etc.
As an investment target, the digital collection industry is growing rapidly
Trading cards, in essence, are very similar to artwork.
As a unique digital collectible, the pace of digital trading cards entering the digital field is accelerating, and has become a brand new investment category. Not only that, but even outside of the cryptocurrency space, trading card sales have been booming.
Nick Rose, founder and CEO of the NFT platform Ethernity Chain, believes that more and more celebrities and influential industry figures are beginning to support NFT tokens, which also gives real value to this emerging asset. explain:
legendary football player Pele , thus creating actual potential value for NFT.”There are many other examples of successful startups in the field of NFT collections, such as the price of the Mint Condition Card on the NFT trading platform StockX, which jumped from $280 a year ago to the current average price of $775. A trading card for American football superstar Tom Brady recently sold for $1.3 million on the StockX platform, as the card is so rare that only 100 were issued during his rookie season.
Many traditional investors have begun moving into riskier asset classes such as cryptocurrencies and blockchain businesses. However, when asked about the latest NFT trend, Radek Zagórowicz, CEO of blockchain gaming platform Hoard Exchange, warned that blindly following the “hype” could be very dangerous:
Some projects may just use NFT as a gimmick or as a promotional strategy, rather than exploring its true value. Investment One has to be very careful.”
In order to curb the new crown virus epidemic, many countries had to choose to close their cities. This measure resulted in the dismissal of millions of people and also had a negative impact on economic growth. In this case, countries such as the United States, Brazil, Germany and Japan have slashed interest rates and bought government bonds, resulting in investors becoming less and less attractive to traditional financial products.
At the same time, the monetary quantitative easing implemented by the Federal Reserve has also raised concerns about future hyperinflation, making traditional investors move away from stocks and fiat currencies and turn to precious metals and cryptocurrencies, of which they are most interested in NFT.
Mainstream artists and companies began to test the water NFT
So far, NBA Top Shot has attracted more than 230,000 NBA fans to join, and they are all eager to own NFTs of NBA stars’ “highlight moments”. On the other hand, Major League Baseball MLB and its players have also announced a partnership with local trading card manufacturer Topps to launch a new NFT trading card.
At the end of March, Dapper Labs, the NBA Top Shot development team, announced the completion of a $305 million financing round, with investors including Coatue Management, basketball superstar Michael Jordan, and Kevin Durant participating. Coatue is a $1 billion investment firm with stakes in companies like Airtable and Instacart. These investment institutions are interested in Dapper Labs mainly because the recent NFT boom has attracted market attention, and NBA Top Shot is currently one of the NFT platforms with the largest number of users. According to The Information, Dapper Labs’ latest round of financing has not yet been completed. If more investors join in the future, its valuation is expected to further increase.
YouTube star Logan Paul also joined the “NFT craze,” earning more than $5 million by selling 3,000 NFTs, including Pokemon trading cards. On the other hand, the market’s demand for NFT is partly driven by games. For example, Pokemon trading cards can be directly added to the game, and the valuation of three first-version NFT kits has reached $40,000.
Develop your Own Nft Matketplace here : Nft Matketplace Development Company
A growing number of artists, celebrities, and major sports organizations are also jumping on the NFT trading card bandwagon as a way to reach new audiences, but many believe NFTs are only just beginning to reveal their true potential. John Wu, president of decentralized application development platform Ava Labs, explained:
True asset ownership is not the end
In fact, in the physical world, the collectible trading card industry has existed for a long time, and the reason why it has not developed and expanded is likely to be related to the immature authentication and storage models-blockchain technology can provide solutions for these problems plan. More importantly, as the scarcity value of trading cards can be fully reflected, blockchain technology has begun to bring changes to the entire collection market.
Although some people have made a fortune by participating in the emerging market of NFT, it should be noted that this industry does have high risks. In 2020, the physical sports star trading card and memorabilia market is estimated to be worth just over $5.4 billion, compared to the $2.6 billion market cap of Dapper Labs alone, a digital trading card company (one said the post-money valuation has risen to 7.5 billion), but its total sales are “only” about 230 million US dollars (data as of the end of February 2021).
From a numerical point of view, the current NFT market does have a lot of room for development, and NFT does contain valuable assets that can promote the further development of the market. In addition, although NFT is “unique”, it does not mean that the corresponding content of NFT is also unique. NFT is just a digital certificate and authenticity certificate for collectibles, but in reality, some people don’t really care whether they need to have a so-called “Certificate of Authenticity”, but many people need such “proof”. Just like Bitcoin, although you may not need a real physical coin to “prove” the existence of Bitcoin, you need at least a wallet that can store Bitcoin in order to “prove” the ownership of the assets you hold.
