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The Time Has Come to Unlock the True Value of NFTs

NFTs – crypto’s popular moment – had a breakout year in 2021. Brands, prominent celebrities, major art institutions, and even the dictionary appeared to be infected with NFT fever.

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With revenues totaling $10.7 billion in the third quarter, it’s time to look at the broader picture.

Unique on-chain assets are set to rapidly extend beyond profile images of punks and apes, despite the fact that the new asset class has mostly captured the art and collecting market.

Investors are flocking to a new industry characterized by rapidly expanding online communities and a thriving creator economy. On the first day of Coinbase’s NFT platform’s launch, an amazing one million people signed up for the queue.

As more people become acquainted with the technology, we will begin to see more usefulness and real-world integration, enhancing the value of the already enormous NFT market and expanding the paradigm shift from physical to scarce digital products.

Institutional capital is flowing into the space, which should come as no surprise. Despite having a market valuation in the billions and representing one of the most culturally transformational technologies, NFTs are extremely illiquid. However, credit markets are forming, providing a fresh source of yield for a yield-starved economy.

Investors can gain more than just a simple store of value from their NFT assets. NFTs are one-of-a-kind on-chain assets that provide digital scarcity and provenance. As the globe moves on-chain and the metaverse economy becomes more mainstream, solid infrastructure is required to keep up.

For a new asset class with a trillion-dollar total addressable market (TAM), mark-to-market pricing, valuations, and credit markets will be critical moving forward.

Getting stuck on the chain

People are making a lot of money selling these rarities, and the combination of market activity and high-profile sales of what many still consider to be a simple ‘jpeg’ has everyone on the lookout for the next golden ape or extraterrestrial eight-bit avatar. In fact, certain ‘blue chip’ collections, such as Bored Ape Yacht Club and Crypto Punks, are transforming into digital country clubs, with everyone wanting to join.

Some high-profile photo collections and digital art pieces are fetching prices comparable to physical paintings like Picasso, Monet, and Van Gogh. However, despite a thriving market worth billions of dollars, there is no way to access any of that money without selling the asset in question — and therefore forfeiting any benefits that came with holding it.

Pains of maturation

The NFT marketplace as a whole needs to mature in order to fix this problem and take use of the enormous market capitalization behind some projects. Most people, especially those who aren’t familiar with decentralized apps, are still perplexed by the technology behind NFTs and participating with the market. Regardless of technological knowledge, everyone should be able to easily onboard.

Another issue holding back the NFT sector is the lack of a standardized authority on collection rarity rankings. While there are a few places where NFT aficionados can get information, investors and artists alike would benefit from a widely agreed method of valuing these precious digital assets, particularly when it comes to something as important as ranking.

The perceived worth of the item in question may be validated once a standard for appraising the ranking of collections has been established, giving lenders the confidence they need to grant loans based on that value.

Unlocking the liquidity of high-value NFTs also allows holders who have built up a sizable portfolio to use it as collateral for other investment opportunities without having to sell it, just like they could with a tangible collection in the traditional art world.

A future-oriented marketplace

Unlike physical collectibles, some of these digital goods are useful to their owners. Owning a specific NFT could give you access to special events or passive income opportunities like token yields or play-to-earn games.

Plots of land are already being sold for large sums as the metaverse expands, and owning virtual real estate might someday be a lucrative source of revenue through leasing.

We’re just getting started in the NFT space, with only 20% of Americans participating. The market will see a tremendous flood of new investors now that famous companies like Coinbase and FTX are establishing their own NFT platforms. With the financialization of NFTs, this developing market begins to mirror current art markets, which will help attract even more participants.

Integrating some of these protocols into the NFT industry should be the next step, as it will benefit not just creators and holders, but also the marketplaces with which they interact.

NFT

To Be Sold for $70 Million, with Proceeds Used to Support NFT Purchases at MoMA

The auction of works by Renoir, Picasso, Bacon, and Rousseau will help the museum increase its online presence and maybe buy NFTs.

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This fall, the William S. Paley Foundation will hold an auction featuring works of art valued at at least $70 million in order to increase the digital presence of the Museum of Modern Art (MoMA) in New York and possibly acquire the institution’s first NFTs.

Since the passing of the co-founder of CBS in 1990, William S. Paley’s collection has been maintained by MoMA. Sotheby’s has been hired by Paley’s namesake organization, which includes endowment funds for museums and educational and cultural activities, to auction off 29 of the 81 items in the MoMA collection.

The sale proceeds will go toward growing the museum’s online presence. MoMA’s director Glenn Lowry stated in the Wall Street Journal that the museum had suggested several potential uses for the funds.

MoMA may start its streaming service, organize online exhibitions and video discussions with artists, or work with colleges and training organizations to offer online courses. More importantly for cryptocurrency enthusiasts, MoMA might also buy its first NFTs.

According to Lowry, the museum has a dedicated team monitoring the digital art scene to hunt for suitable artists to collaborate with or buy from.

In the interview, he added of NFTs, “We’re aware that we lend an imprimatur when we acquire things, but that doesn’t mean we should shun the domain.

What’s on offer?
The William S. Paley Foundation and MoMA have an agreement that gives MoMA the final say in how the collection is used. Other humanitarian endeavors championed by the late Paley will receive a tiny share of the proceeds from the autumn auction.

Most of the collection’s most famous works, such as Picasso’s “Boy Leading a Horse” from 1905–06 and Matisse’s “Woman with a Veil,” are not for sale. Rousseau and a Renoir, on the other hand, will be sold at auction, according to Lowry.

According to Sotheby’s, Francis Bacon’s “Three Studies for a Portrait of Henrietta Moraes” will be auctioned for at least $35 million in London in October, and Pablo Picasso’s “Guitar on a Table” will be sold for at least $20 million in New York this November.

It’s anticipated that the collection would bring in between $70 and $100 million.

Despite not yet owning a tokenized work of art on the blockchain, MoMA has already contributed to the development of NFTs. The MoMA gave all of its collection’s information in November of last year to the Unsupervised exhibition and NFT project by AI artist Refik Anadol.

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NFT

How NFT Projects Are Setting Up For Ethereum’s Network Shift to Stay Ahead of the Merge?

This week is finally predicted to see the occurrence of one of the most important occurrences in the history of cryptocurrencies. 

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The blockchain network will completely switch from its existing proof-of-work consensus process to the proof-of-stake model thanks to Ethereum’s significant software upgrade, known as The Merge. Ethereum is anticipated to carry on as usual, except that PoS authentication of cryptocurrency transactions will now be used instead of PoW.

Ethereum.org states that “The Merge signifies the combining of Ethereum’s new proof-of-stake consensus layer, the Beacon Chain, with its existing execution layer (the Mainnet).” It does away with the necessity for energy-intensive mining and instead uses ETH stakes to safeguard the network.

Sustainability, scalability, and security are the three key areas of concern that The Merge seeks to solve. Researchers at the Ethereum Foundation claim that the new architecture not only paves the way for future scaling improvements like sharding but also significantly cuts Ethereum’s energy consumption by more than 99% because miners won’t have a financial incentive to run computers constantly.

Further modifications to the NFT market are anticipated due to the switch from proof-of-work to proof-of-stake. The Merge may improve the tokenomics of the entire market, broaden the range of cryptocurrencies it supports, and potentially raise the price of NFT.

The bulk of NFTs are a part of the Ethereum blockchain, and many people are enthusiastic about the switchover because it is anticipated to use less energy, allowing users to mint and sell NFTs in a more environmentally friendly manner. However, other users worry that, as with every substantial technological change, there may be a chance for fraud, hacking, volatility, and confusion.

Do you have safe NFTs?
Due to duplicate NFTs existing as a result of the ETH proof-of-work chain and other future forks, it may be unclear which assets are “official” or “real.”

There is a chance that there will be two different types of NFTs when the merge is finished because Ethereum is projected to have at least one proof of work (PoW) fork that will continue to exist. Thus, NFT owners can experience a problem known as a “replay attack.” When a transaction is finished on one blockchain and then repeated on another, this occurs.

OpenSea, the largest NFT market, and well-known companies like Yuga Labs, the company behind the Bored Ape Yacht Club, have officially said that they will not accept the identical NFTs that are present on these chains. In a similar vein, Proof, the startup that is in charge of the Moonbirds NFT project, has stated that it will neither acknowledge or support any forks that are made after a merging.

The Merge will quickly establish itself as the dividing point between PoW-era and PoS-era NFTs. One of the first projects to launch during Ethereum’s new phase will be Supercute World’s SELFi3STM NFT collection. The project will be powered by Web3 developer platform, Alchemy, and will showcase the company’s new full stack NFT development capabilities.

Nikil Viswanathan, cofounder and CEO of Alchemy, stated, “Our objective has always been to bring web3 to a billion people, and we see NFTs being a crucial driver of that adoption.” We’ll keep investing in our full-stack NFT development offering and supporting innovative, exciting new projects like Supercute World to help reach that aim.

The first completely inclusive NFT initiative is SELFi3STM by Supercute WorldTM, which offers male, female, and gender-neutral variants so users can develop and represent the greatest versions of themselves online. Without ever changing the rarity score, holders will be able to select the best version of themselves.

The upcoming collection of 7,777 SELFi3S from Supercute World is anticipated to debut in October. Visit the website and follow the project on Twitter to keep up with developments and learn more about Supercute WorldTM.

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ART & COLLECTABLES

Ford is getting ready to enter the Metaverse with digital cars and NFTs

A month after the company announced significant personnel reductions, it has filed a trademark application covering its future initiatives in the Metaverse and NFT space.

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Ford Motor Company, an American automaker, has filed 19 trademark applications across its key automobile brands as it prepares to enter the realm of nonfungible tokens (NFTs) and the Metaverse.

Mike Kondoudis, a trademark attorney licensed by the United States Patent and Trade Office (USPTO), disclosed in a tweet on Wednesday that the business had submitted a total of 19 trademark applications covering its car brands, including Mustang, Bronco, Lincoln, Explorer, and F-150 Lightning, among others.

The trademark applications include a projected online marketplace for NFTs and virtual versions of its businesses’ automobiles, trucks, vans, SUVs, and clothes.

Ford intends to produce digital images of its vehicles, SUVs, trucks, and vans that will be verified by NFTs, according to USPTO filings submitted by the automaker on September 2.

The business also disclosed plans for “downloadable virtual commodities,” or “computer programs,” that would include apparel, accessories, and parts for vehicles for usage in “online virtual environments,” such as virtual and augmented reality trade exhibitions.

Additionally, there are plans to develop an online marketplace for “others’ digital artwork” as well as “online retail shop services featuring non-fungible tokens (NFTs) and digital collectibles.”

Less than a month after Ford Executive Chairman Bill Ford and CEO Jim Farley announced significant personnel reductions from its global workforce to decrease corporate expenses; Ford has decided to enter the Web3 area.

Ford isn’t the first automaker to enter the Metaverse market.

While premium automakers like Bentley and Lamborghini have already launched NFT collections, automakers including Nissan, Toyota, and Hyundai have indicated ambitions to enter the fast-expanding Metaverse market.

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