From 2018 to 2020, the size of the NFT market has increased by 825%, the number of active addresses has increased by 201%, buyers have increased by 144%, and sellers have increased by 113%. In the first quarter of 2021, the size of the NFT market has surpassed US$1 billion and is expanding at an alarming rate. Uniswap sold a pair of socks for 160,000 US dollars, Jack Dorsey sold a tweet with five words for 2.5 million US dollars, Nynt Cat’s first work was sold for 656,000 US dollars, and Beeple sold 69.35 million US dollars for Christie’s NFT works…
The total market value of NFT and the scale of transactions have grown rapidly. Some ultra-high-priced products and celebrity effects have made NFT successfully be famous in this circle, so more and more institutions, celebrities, IPs and ordinary players are pouring into this emerging market. The current competition on the NFT track have just started. From the initial development of a single NFT project (game, trading platform, etc.) to the search for a highly usable NFT underlying infrastructure, there are many large project parties or IP that develop their own customized blocks. which is used for the issuance of its own NFT to get ecosystem more and more perfect. However, due to the severe congestion of Ethereum and the high gas fee, it is difficult for NFT to form a large-scale market.
Current dilemma of NFT
First, NFT projects on Ethereum are limited by Gas fees. The price of most NFT is already lower than the transfer fee, besides, the rise of DeFi has caused congestion on the Ethereum chain, so many NFT have begun to fall asleep and some users have left.
Second, the difference in NFT value and the hype bubble. There is currently no good standard to estimate NFT, also, many products created through NFT do not have too high commercial value. And with the participation of too many speculators, their prices have risen rapidly so the price differences and bubbles in the NFT market will be very obvious.
Third, it is limited by the NFT infrastructure. At present, NFT still cannot effectively solve the problem of asset traceability under the chain, and there is not much blockchain technology to speak of.
In addition, the high handling fees, network congestion, and poor user experience are the main problems of the existing Ethereum network. This makes it more difficult for the NFT, which has a high threshold to become popular. The high handling fee is one of the reasons why many ordinary players are discouraged. In addition, Ethereum cannot complete the cross-chain. Therefore, seeking solutions that can carry high-frequency trading and large-scale markets is an important development direction of the current NFT industry.
Unlimited possibilities with NFT+DeFi
The combination of NFT and DEFI is also an important direction for the development of the NFT field. The DEFI liquidity mining concept is added to the NFT field, which makes NFT assets can be used as collateral for liquidity mining. “DeFi liquid mining” is one of the most popular terms in 2020, and NFT, with its close relationship with DeFi, has set off an upsurge of participating in DeFi mining to obtain tradable NFT. The current star project in this area is NFTB.
The emergence of NFTB allows NFT holders to use idle NFTs in their wallets. It provides a market where users can promote their NFTs as collateral for fungible token loans, or can be used as a lender to submit a loan quotation to the other party, including a custom loan amount, required repayment amount, and loan duration. The borrower can choose whether to accept it or not. The transparency and accountability of the blockchain means that NFT provides unique, mathematically verifiable, and unchangeable solutions.
NFT mortgage
The combination of NFT and DeFi is an inevitable trend of development, and financial derivatives related to NFTB have also emerged along with it.
How can NFT holders also use the idle NFT in their wallets? NFTB is a market that specifically supports NFT mortgage loans, users can mortgage NFT on it to obtain loans, or as a lender to propose a borrowing quotation to the other party, including a custom lending amount, required repayment amount and lending time, and borrowers can choose to accept or not.
NFTB combines its own NFT trading sector and market demand to launch a new NFT pledge lending function. According to the NFT’s pricing in the INO market, combined with over-collateralization and other methods for risk control, the borrowers and lenders are matched with each other. And after the borrower and lender finally confirm the loan amount, interest, and repayment method, it will enter the smart contract.
After the contract takes effect, the NFT assets will be in a pledge state. When the agreed time expires, if the borrower fails to repay in time, the NFT assets will be attributed to the lender. If the borrower pays in time, the NFT assets will be returned to the borrower. At the same time, NFT assets can participate in NFTB mining in the pledge state.
In order to better match the borrowing needs of NFT assets, NFTBomb will also introduce third-party insurance to customize reasonable insurance services for NFT assets and both borrowers and lenders.
NFT Fragmentation
With the continuous popularity of the NFT field, many innovative NFT derivative products have also been born. NFT Fragmentation refers to users fragmentate their NFT through the NFT Fragmentation agreement. As many NFT artworks are expensive, players can purchase NFT fragments to obtain partial ownership after the NFT is fragmented. By fragmenting NFT assets, the shortcomings of insufficient liquidity of NFT assets can also be solved.
NFTBomb’s INO model can split the value of assets (artwork) into “art value + token value” via the issuance of NFT Fragmentation. Among them, the token value can be expanded to functional market value, and anyone can lock an NFT asset on the chain and initiate an INO on NFTBomb. Users who has participated the INO can join in crowd auctions by sending ETH to the contract. After the transmission is successful, a certain proportion of ownership will be obtained according to the proportion.
The fragmentation of NFTB is a unique circulation asset after the project carried INO. Each INO contract will create a corresponding vitality based on the target NFT asset to carry its fragmented ownership and liquidity. After the end of INO, users will also obtain part of the ownership and income rights of the target NFT in proportion to the amount of fragmentation they hold, and at the same time obtain the mining rights of NFTB.
Equity securities
Owning a piece of NFT in NFTB is not only the ownership of the assets it represents, but also a certain kind of rights and interests in the assets, such as ownership, use rights, management rights, and income rights. For example, when trading artworks in the form of NFT, the ownership and use rights of the digital artworks are transferred from one collector to another, which is similar to SuperRare, the digital art and collectibles trading market with the largest volume, creators can get 85% of the revenue from the first sale of the work on this platform. When the works are sold for the second time, the artist will permanently enjoy 10% of the sales revenue (similar to royalties). At this time, NFT characterizes the creator’s intellectual property rights. Whether it is the NFTization of physical or digital artworks, it can be understood as a kind of securitization in essence. NFTB turns artworks and collections into a more liquid investment product. In the future, once NFT is recognized by the law, it will also become a part of individual legal assets.
NFT Index
Since NFT indexes provide an important step for NFT liquidity, these NFT indexes can also provide limited liquidity for lending and check-in, as well as provide convenience during the period of virtual world interoperability for users and players! Now, with new discoveries, the practicality of your NTFB is not only available in an independent world, but in many worlds. You can get the value of NFTB from the interoperability of the virtual world.
NFT+DEX
NFTBomb’s INO will simultaneously introduce synthetic asset method according to different stages. The fragmentation assets generated through synthetic assets can also be circulated and exchanged in KiDEX.
NFT assets are added to DEX and deposited into the corresponding NFT project pool. And every time an NFT is deposited, a corresponding number of Tokens are generated, and then these Tokens can be freely traded on the exchanges like other Tokens, and investors can exchange the corresponding Tokens for NFT assets at any time.
NFTB=NFT+DEFI+DEX is essentially equivalent to giving the original NFT with obvious collection value but extremely low liquidity, with the same high liquidity as other digital currencies, NFT can start to play an active role in DeFi application scenarios such as mortgage and loan.
DeFi is in the ascendant while the popularity of NFT is also increasing. Many people call it the hidden line of investment in 2021. The possibilities and potential of NFT are limitless, and gradually improve over time, we will see a huge wave of innovation in the field of NFT.
What kind of new ideas can be inspired by NFT when it encounters DeFi? As a star project, what kind of light can NFTB shine? But it is conceivable that this field will be very excellent!
According to official disclosures, NFTBomb will hold the “INO Agreement Global Conference” on May 8th to set off a new market in the NFT field. The INO agreement is a great innovation in the NFT field, and the project token NFTB will be released via the INO contract. At that time, INO users participating in the conference will receive millions of NFTB airdrops (INO will last for 48 hours).
