How can we make money from the market where $69.34 million NFT artworks can be sold?
It is permitted to reproduce this article from New Rich Club.
Family members of the New Rich Club, have you heard that the well-known auction house Christie’s recently sold a piece of art for US$69.34 million?
At first glance, it may seem uncommon for high prices to be auctioned, but the problem is that this is a purely digital NFT artwork. To be honest, it’s just a picture, there is no entity, and it can be taken at such a high price, which is a bit incredible.
This matter has actually been written over and over again, but we got something different today.We invited Ken, a good friend of New Rich Club, who is preparing to build the largest NFT trading platform in Asia. Before doing this, his net worth was already tens of millions. Today we will listen to him talk about what NFT is, why he is optimistic about NFT and most importantly, how public make money in NFT.
Below is his narrative.
Hi everyone, my name is Ken and I am 33 years old.
In recent years, I have been investing in block chain, new consumption, and high-tech fields. In earlier times, I managed a Grade A auction house, and worked in the new media, fashion and luxury industries. It seems that I have worked in many different industries, but from my own point of view, I am more energetic and like challenges, so I think I have not been involved extensively enough. If there is a chance, I want to try all the industries, just like Angelababy said, If she can get it, then she will win all the film and television awards.
It’s interesting to talk about the first money we make. The first bucket of gold of Hengfa’s members is a bit legendary. For example, I have a very closed friend who was selling luxury hobby. His business and his life were just ok. Suddenly, one day, a major international brand came over and said, “Hey, boy, I have a big event here and I need your 20,000 sets of products for the event.” He just tentatively quoted a price of 1 million, but the other party remitted the money directly without saying a single word. My friend directly bought a car with 400,000RMB, because his cost was only 200,000RMB. During that time, he said that he often woke up in the middle of the night with a laugh.
It’s a bit far. My first bucket of gold is actually quite interesting.
At the end of 2016, I participated in a business salon. There was a man who looked mediocre and nobody talked to him, so I went to chat with him politely. he suddenly asked me, “hey, man, have you heard of bitcoin?” I was taken aback by him and said “Yes, but I haven’t bought it. How can I buy it ?” Suddenly,his hazy eyes suddenly opened, and it felt like a beautification effect had been applied. And then, he helped me register my first exchange account in my life. At that time, the price of bitcoin was less than $1,000, and I was busy, I bought 500,000 RMB of bitcoin and I didn’t care much about it. By the end of 2017, the price of bitcoin was 14,000 US dollars. I opened my account and took a look: “Wow, how can the interest of bitcoin be so high? Is it like other telecom scams that the money can only be withdrawn by continuing to deposit money in the account.”At that time, I sold it all directly when the bitcoin price was at 14,000 US dollars. Finally the 500,000 yuan became 10 million. Later, I still bought some at a high price of 17,000 US dollars, but for the current price, it’s totally fine.
Later I learned that who I met that day should be “Steve Jobs” in the field of blockchain investment, a low keyed person who never accepts interviews. His industries cover bitcoin mining, primary and secondary market investment and asset management, as well as traditional investment, with a net worth of at least four or five billion.
I should be regarded as the first group of people in China who knew the concept of NFT. We were also the first to participate in the Crypto kitties transaction, but we bought very few at that time.
Note: Mystery Cat is a cryptocurrency cloud-raising cat game that was launched in 2017. Players can buy, sell and keep virtual cats. It was once all the rage. In September 2018, its transaction volume was about 26 million U.S. dollars.
Firstly, let me give you a brief introduction to NFT. In fact, most things in the world are not equivalent. It is because of the inequality that people have developed general equivalents from the exchange of objects, just like shells, stones and so on. Until it evolves into money.
Therefore, ordinary tokens can be understood as passes or tokens, while NFT(non-fungible tokens) can be directly understood as objects or digital files. The assets corresponding to each token can be unequal and different. .
When you want to map assets, you can use Ethereum’s ERC-721 protocol and ERC-1155 protocol to complete the process of virtual assets on the chain. Readers who are interested can search for the difference between them. I won’t go into the details here.
So how did I get involved in NFT?
This is the story. I have a college senior who has been doing game development in the core R&D departments of NetEase and Tencent for many years. His life was moist and stable, but he suddenly decided to develop a TCG card game similar to Magic:the Gathering with good dynamics, better than Hearthstone.
At that time I persuaded him for a long time: “Why do you do this game? Not for your own hairline, but also for the rest of your life to think about it!”
But after seeing his firm gaze, I didn’t say much.
In 2017, when Crypto kitties became popular, the ERC-721 protocol completely entered the vision of blockchain players. The senior said to me: “Look, we can use blockchain technology to make game cards into NFT assets. In the future, we can not only confirm rights but also do transactions.” I thought his idea was too genius at the time.
Then, he started for several years, tens of millions cash-burning and he was beginning to fall out in handfuls, and finally he got the investment of CMGE(00302.HK). Finally,the game “Red and Blue” went online this year.
I was fortunate to have also participated in the early support and incubation of blockchain technology. It is my honor to be able to provide such an ideal person with little bit contributions.
I am not only optimistic about NFT, I also think NFT will be an invitation card for the future digital universe.
I don’t know if you like cyberpunk-themed science fiction. From “Do Androids Dream of Electric Sheep?” to Otomo Katsuhiro’s “Akira”, from Ridley Scott’s “Blade Runner” to “Ready Player One”.
I never thought cyberpunk was a science fiction, I thought it was at best a near-future setting . In these worldviews, we will all find the updating and vigorous development of virtual reality technology.
Because of the population explosion in the future, everyone will live in a kind of high tech, low life dilemma, so choosing to use VR to escape the boring daily life is no better way.
So imagine it, when everyone is in the VR world and everyone can have a house with a lot of space, what would you use to decorate your home? Of course it is the super rare game equipment, world famous paintings, sculptures and various decoration art, or works created by yourself.
And the way these things are right confirmed and traded is the NFT, so I am not only firmly optimistic, but also invest in various NFT collections.
For now I own a lot of NBA Top Shot star cards and some blockchain art. I bought more than 100,000 U.S. dollars before, and it is currently worth at least 300,000 U.S. dollars, but I plan to sell some in the near future.
I also want Liu Cixin’s signature to be NFT. For the future world, Liu Cixin is the true expert.
Now, I am planing to do some preparation for the advent of the cyberpunk era, so I am going to build the largest NFT trading platform in Asia, and I named it Punk.Network.
I think that domains related to Cyberpunk’s should be in the hands of Polish dumb clucks, so Punk can only be chosen. Of course, Punk is also very good, as a tribute to Sexual gunners band.
I divided Punk.Network into two major sections, game assets and collection assets.
For the game, I definitely support the ideal youth card game first, and because I have my own protocol layer public chain, the cards bought on the exchange in the future will be directly mapped to the game, and there is no need to transfer assets.
As for the collections, relying on my early work experience, I have integrated 100 artists and stored more than 30,000 works as souvenirs and collections for future NFT.
At present, many blockchain artists are very good illustrators, but they are still repeating the state of a hundred years ago in terms of the depth and technique of specific expression.
To put it bluntly, it is data-based Dadaism. It has a nihilistic anti-hierarchical character, but it is not surpassed. At best, it is a kind of rebellious action. I hope to introduce more mature artists and launch an innovative art movement on a larger paradigm and scale.
At the same time, relying on the characteristics of blockchain freedom and no borders, I hope that people all around the world can pay attention to what Chinese contemporary artists are thinking, creating, and expressing.
I also welcome NFT art creators from all over the world to place their works, exchange, trade, and even pledge.
We will provide free technical support, and all profits will be directly given to creators or asset owners.
In the future, we will continue to exhibit their works online and offline for outstanding artists for free, mainly in response to the call of Second Hand Rose, and let more artists get rich first!
The whole project is currently well prepared, and the trading platform has been developed, and it will soon become the largest trading platform in Asia after it goes online.
Several million have been spent to build Punk.Network. This is a long-term plan of three to five years. If the entire project is to achieve all its transaction functions and due social impact, I conservatively estimate that it will cost 150 million yuan. It doesn’t matter, if the money is not enough, I will sell my own collection. I have some physical collections. There are dozens of antique cameras with good models and appearance. The most famous of these is BeiHong Xu’s works.
Of course, NFT is definitely risky, and the risk has already appeared.
At present, there are a large number of IDO projects on the market under the banner of NFT. I personally recommend that do not participate in any of these projects.
Meanwhile, those inferior NFT products have no collection value. Another thing to note is that the works of many famous artists such as Beeple, Pak, etc. are already at extremely high prices.
I personally think that it will be more sensible to consider collecting some works after the heat has passed and the price and value are not too overrated. Missing is normal, chasing high is a fault.
For investment projects, I am only concerned about one thing, that is, whether to meet demand. Of course, speculation is also a financial need. Whether the project can be applied quickly, whether it is technically easy to implement, and the background of the team members are the remaining three elements.
For investing in art, my grasp comes from years of learning and accumulation of art. Even so, I often make mistakes, because in the auction world, “lies” are repeated several times and become “truth”.
Now, I didn’t expect a lot of high-priced works in the NFT market. In fact, I am also a normal person. Probably because of family genetics, I’m not afraid to lose hair, so dare to start a business.
So, how can public make money in NFT?
For those who are interested in collecting, I highly recommend him to touch the industry he knows. For example, if you like basketball very much, you can find the value depressions of NBA star Card. There is only one criterion for investment, which is to find the value depressions.
My COO is a NBA fan. He always feels that the price of Luka Dončić’s card is low. Because this player has a comprehensive style of play, he is very optimistic about Dončić’s card. Although he didn’t have much money, he still bought a few. Sure enough, the value of the star’s card appreciated. He was so happy that he overturned a whole cup of milk tea on my computer, and was deducted 2,000 yuan from his salary.
In the future, there will be many types of works for everyone to choose from, not only paintings, and there will be ACG, film, and game targets. Choose what you know and be good at, and you will have half the success.
Of course, you have to choose a subject with a relatively large transaction volume, otherwise circulation will become a problem. At present, the mature trading markets include Opensea, NBA Topshot, Panini (for buying football star cards), and domestic ones will be online soon.
The price of NFT products will definitely fluctuate, and now may not be the best time to buy, but you’d better start understanding and keep up with the pace now.
Finally, thank New Rich Club for giving me such a good sharing opportunity. I have always been a big fan of New Rich Club.
If you didn’t know about the New Rich Club before, it’s not too late to subscribe now.
If you’ve already followed, then you should be on the approach toward riches.
Translated by Huan
