The current state of the NFT market: Is ETH NFT dead?

As an NFT entrepreneur, especially since the collection is issued on ETH, my mentality these days is inevitably affected. At the same time, I also see many people discussing whether ETH NFT is dead. So I hope to share some of my views and thoughts with you through this article, hoping to help you better participate in the NFT project, and even recharge some faith for you.

Why is ETH NFT so bloody?

At present, there is no need to say much about the current market situation, let’s simply analyze the reasons.

As we all know, NFT is a very small circle, so when Bitcoin skyrocketed and drove NFT projects within the Bitcoin ecosystem to soar, the attention of many ETH NFT players was attracted.

The current bull market will make all those who have not made money anxious. Sometimes, even if they have made some money, they will also feel anxious because they see others making more.

So it is not difficult to understand why ETH NFT is causing such a bloodbath.

The funds originally in the ETH NFT pool were transferred to BTC NFT and other currencies, and many people chose to sell ETH NFT to obtain liquidity.

In addition, many farmers who previously mined on Blur also stopped mining. Before this, they were the exit liquidity of many projects. In order to obtain Blur tokens, they would bid for the projects, which made the selling of many NFTs not have much impact on the floor price. When they no longer provide exit liquidity, it is easy for a large farmer to sell, causing the floor price to fall by 20% to 30% or even more. This situation will be even more terrible when the loan liquidation is added.

The world is a huge meme

Next, I want to talk about another issue, which I have seen recently in some communities. Many people are asking whether this wave of ETH NFT is a bubble burst or a panic underestimation.

How to price NFTs has always been an unsolvable problem. As far as the NFTs on the market are concerned, I think there may not be a so-called "value coin" yet. Therefore, I don't think we should estimate the price of NFTs according to the traditional way of thinking. Compared with the pioneering financial innovations of projects such as UNI and CRV, most NFT projects can provide more emotions.

In this respect, NFT is the same as the entire crypto industry. Everyone is speculating on emotions and making money from emotions. Often, we often say that the difference between NFT projects and other projects is that NFT projects have a very sticky community, and in this respect, we can see that projects like PEPE are also like this.

In my opinion, whether it is ETH or BTC, or NFT projects on other chains, they are essentially memes, and the world is a huge meme. Otherwise, if we only talk about the so-called "value", how can Azuki and BAYC be sold at a unit price of hundreds of thousands? They are just memes. Buying NFTs is actually paying for your emotions, and hyping NFTs is actually paying for other people's emotions.

NFT and “sense of gain”

Then we need to talk about the "sense of gain" that NFT brings to Holders. I also talked about this issue with @freeguyyee when I was on the phone with my second uncle a few days ago. This was a very important topic that day, but we didn't come to a conclusion in the end.

The reason for starting this discussion is that I saw many people in the community saying "NFT always punishes diamond holders" not long ago. We believe that the reason for everyone to say this is that emotional hype will cause the price of NFT to reach a peak at one time and then continue to fall. Diamond holders did not choose to sell at the high point, but chose to hold for a long time. However, there are almost no projects that can provide diamond holders with enough sense of gain.

Frankly speaking, this is also where we are not doing enough at the moment.

It is normal and reasonable to seek more profits for yourself, so we cannot completely avoid flippers. So, from the perspective of the project side, the only thing we can do is to make everyone believe that NFT is worth a higher price, and in order to make everyone believe it, we need to give Holders enough sense of gain.

Next, I would like to talk briefly and without revealing any secrets about what we are doing around the sense of achievement.

I think we can roughly divide "sense of gain" into two categories: one is economic sense of gain, and the other is emotional sense of gain.

As for economic gains, I believe everyone can understand that you can never rely on continuous money-spending to pull up the market. On the one hand, the market timing is wrong, and on the other hand, this is unsustainable and will make the entire company unable to continue to operate, leading to the death of the project. So our idea is to allow everyone to gain more external benefits by holding Little Ghost. For example, we are upgrading the Little Ghost's spiritual power system and lottery system, hoping that it will not rely on third-party plug-ins, so that the mechanism can operate as we designed and reward diamond hands better.

Recently, a very strong technical expert has joined Little Ghost's team. He has made many contributions in multiple developer communities. With his joining, many things we have always wanted to do but have been struggling to have technical personnel to execute can now be quickly advanced. In the future, we can also respond more flexibly.

On the other hand, it’s about the sense of emotional gain.

In the past period of time, we have been working hard to promote the development of the Little Ghost IP. Now we can even say that Little Ghost is the most cross-border joint project among all NFTs. We hope that through our efforts, holders can safely change to Little Ghost avatars without worrying about being ridiculed as leeks. We hope that all holders can feel that holding Little Ghost is something to be proud of, which is the driving force for our continued development.

Unlike many projects, our team is a team that truly started from scratch. We did not have a silver spoon in our mouths, nor did we have 10 years of work experience in traditional industries, nor did we do other entrepreneurial and industrial investment. In the beginning, the resources we could access were very limited, but with sincerity and passion, we have come all the way to where we are now. Our foundation is not good, but we are no worse than anyone else, and we are even ahead of many people. Most of our team members are people in the circle, and they usually trade in cryptocurrencies themselves. I think this may be one of the reasons why we can rely more on passion to do the Little Ghost project, rather than to make a quick in and out project to make money quickly.

In the bear market of the past two years, we have been promoting the development of the Little Ghost IP in the Web2 world and have carried out many brand co-branding activities. However, the positive feedback brought by these co-branding activities is actually very limited. Therefore, we often fall into self-doubt and worry about whether it is worthwhile to do so.

A few days ago, when I was on the phone with my second uncle, I asked him: "From the perspective of a holder, when you see that we have reached joint cooperation with some Web2 brands, do you feel a sense of pride or gain?"

He said, “Yes.”

I was really moved at that moment. China is so big that we cannot accommodate all Holders in every event, but I really hope that everyone will be proud of Little Ghost after seeing its growth. I can’t reveal too much about the development of Web2 business this year, but I can say that in the past year, we have run through the business model, and this year will be a year of continuous expansion. We will borrow the potential of more influential brands and conduct more in-depth Web2 business exploration. Although Rome was not built in a day, we believe that Little Ghost will become a monster and grow rapidly at a speed that ordinary IPs cannot reach.

As the crypto market enters a bull market, it also means that we will launch many actions in Web3. You can rest assured that we will use MID as the entrance to the ecosystem. In the future, we will also promote the access of other blockchains to MID, so that our project will no longer be restricted to a single blockchain ecosystem, but can develop in a multi-ecological combination. It is not convenient to disclose other plans for Web3 at the moment, so please stay tuned.

We are promoting the transformation of the Little Ghost project from a single IP to an entertainment content ecosystem. Creating content, building platforms, and expanding channels are our priorities. Web2 co-branding and Web3 actions will become our amplifiers. I don’t think ETH NFT will die. On the contrary, after this wave of market conditions, I think more and more projects will begin to try to do something practical based on emotional speculation. Maybe now it can be said that the price is returning to value, but in the future I believe that value will definitely return to price.