Who are the buyers of NFT?

Public data shows that the total transaction amount of global NFT assets in the first quarter of 2021 is as high as US$2 billion, an increase of 20 times from the previous quarter, showing a blowout trend.

We see that the NFT market continues to grow, NFT works are frequently sold at sky-high prices, and NFT creators have gradually been known by people. Even a crypto beginner knows the digital artist Beeple and his NFT artwork “Everydays: The First 5000 Days”. But who bought this $69.35 million NFT? Few people can tell. We have always ignored the NFT buyer’s market. This is also the question I am thinking about recently. Who are the buyers of NFT?

To figure this out, we must first understand what exactly the buyer of an NFT gets?

When the digital artwork “Everydays: The First 5000 Days” has become an NFT, anyone can basically view, use or copy it without restrictions. But only its owner can claim on the Internet that I am the owner of “Everydays: The First 5000 Days”. Essentially, what the purchaser of an NFT obtains is something worth showing off — only “I” am the sole owner of the NFT.

As far as I am concerned, what the NFT buyer buys should be the only authentication of the item on the blockchain. After all, it is about the scarcity.

NFT first entered the art field. It is just because of this uniqueness that they make the purchases believing that NFT not only is valuable, but also has great potential for future appreciation. In other words, NFT focuses on the investment attribute while the traditional cryptocurrencies focus on the payment attribute.

But here comes the point. Being scarce often means being expensive. It’s impossible for the work “Everydays: The First 5000 Days”, a $69.35 million NFT to be frequently traded. Because very few people can afford it and the transaction fee alone is also very high. Obviously, this type of NFT with lower liquidity can hardly support the NFT buyer’s market.

Anything of value needs to be verified by the buyer’s market including NFT.

NFT is a universal certificate of authenticity. Anything that can benefit from the ownership transfer, verifiability and interoperability of the blockchain may be represented by NFT in the future. In this way, NFT might be the most promising in the blockchain industry.

In the real world, the buyer’s market for real estate is strong. In the blockchain world, the buyer’s market for Bitcoin is strong. Therefore, the future development of NFT must have a strong buyer’s market too. However, at this stage, few NFT trading platforms can do this.

What are the reasons for such an inefficient buyer’s market?

At present, NFT is still in a relatively preliminary stage. I understand that the development of NFT needs to go from niche to universal. But at the same time, it is fortunate that some people have already begun to explore the expansion of the buyer’s market for NFT.

On the one hand, Chair, the utility NFT platform, has NFTized rights and benefits to expand the types of NFTs, and extends NFT from the field of art to data rights, digital identities, financial assets and others. On the other hand, Chair starts from the big KOL and binds the fan economy with NFT. Big KOLs have huge social influence, propagation ability and a large group of loyal fans, but their rights and benefits have always been difficult to be circulated or transferred, and are sometimes exposed to copyright infringement. With the help of NFT, Chair provides KOL with property rights protection, convenient circulation mechanism and equal opportunities for participation. KOLs mint various rights and benefits into NFTs on Chair, and monetize them with the resources of the platform. In addition, KOLs also make the best of their fans to attract attention. This helps to form a positive cycle to achieve a win-win situation for all users with different roles and the platform, making viral transmission possible, as well as reaching more groups and bringing traffic and incremental funds to other fields. A liquid market that brings together NFT buyers and sellers of various types has been formed. I have to say that this is really a genius initiative.

Now let’s think again. Who are the buyers of NFT? It’s you? it’s me? Or us? I think it should be each of us. Who doesn’t have an idol these days?

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