With The DeFi Hype Dying Down on Profit-Bookings, What Will Lead The 2020 Boom? | Hacker Noon

@francisobasiFrancis Obasi

I’m a Crypto enthusiast, and a lover of financial independence and freedom.

The crypto market in recent times has been hot with lots of new monies going round due to the sudden attention to altcoins, while mainstream currencies continue to experience high level of inflation leading to sharp value declines.

The DeFi space continues to experience massive attention, and with the oracle market being established, the market value of LINK, NEST, and BAND has repeatedly hit new highs.

In addition to the DeFi and oracle markets, the NFT market is also experiencing increased attention leading to market highs for several of the NFT based tokens.

The focus of this publication is to assess the value of ten different NFT projects and how these projects are solving the problem of tokenizing real-life assets. Interestingly, eight out of the ten projects being studied have seen a visible increase in their token price.

This probability is still quite high. The first NFT project on our list is the CryptoKitties. CryptoKitties is a game centered around breedable, collectible kitties. Each cat is one-of-a-kind and 100% owned by you; it cannot be replicated, taken away, or destroyed.

Homogenization and non-homogenization are also well understood. There can be multiple cats, but they cannot be divided into a few dozen cats. Each cat can have different characteristics such as coat colors, temperaments, size, colour, etc.

Thus making it impossible for each cat (NFT) to be divisible. Bitcoin can split up to 16 times, it can be 0.1, 0.01, 0.0001, etc., each Bitcoin is the same, there is no difference.

Our common TOKENs like the ERC20 tokens are all interchangeable and split-able. NFT has a unique and unique logo, which is neither interchangeable nor separable.

NFT has high application value in games, collectibles, artworks, tickets and other fields. Someone once wrote that NFT maybe a new story in the currency circle after the 2020 halving.

The Value of NFT

We know that money is essentially a generally accepted medium of exchange used to transfer value between two or more peers. However, in modern society, personal wealth is no longer measured by the amount of money held, rather by the assets under a person’s name.

These assets include but not limited to items with a certain market value such as houses, cars, stocks, precious metals, and bonds. For ordinary individuals in modern society, the value carried by assets is often far greater than the value of cash at hand. However, assets in the real world often have the following two flaws:

  1. Most physical assets are very liquid;
  2. The cost of anti-counterfeiting is high, and some heavy assets need to be centralized and confirmed for authenticity. For
    example, the real right of real estate needs to rely on the registration of the estate with the Housing Authority; it is difficult to prove that you own it
    before you see the real thing.

In the blockchain world, we have cryptocurrencies characterizing different
fungible assets such as stocks, shares, fiat currencies, and other precious
assets possessing money properties.

Naturally, we also need a medium for valuing non-monetary assets, hence the reason the Non-Fungible Token (NFT) came into being. Thanks to the decentralization, non-tampering, and cryptographic nature of the blockchain, it has made the arrival of NFT to solve a series of problems facing the real world non-fungible assets.

The tokenization of Non-Fungible assets on the blockchain has ensured the following:

  1. It has better liquidity and can conduct efficient and atomic transactions;
  2. Cryptography helps to confirm the rights to and ownership of assets. Hence, fungible assets mapped on the blockchain cannot be
    forged.

In addition, NFT has also achieved features that cannot be achieved by other cryptocurrencies, especially in the areas of representing negative assets (liabilities), proof of identity or equity, virtual props, etc.

NFT fills the gap of encrypted assets, allowing us to incorporate assets with independent value into the scope of the encrypted economy and obtain blockchain protection.

However, when empowering the real economy, we have also discovered the current problem that NFT is facing: the problem of real asset value mapping, in simple terms “on-chain value” and how to make participants believe that this NFT characterizes its owner

How to prove the promised assets?

Who will endorse it?

We believe that since most of the current physical assets themselves are centralized assets, before the NFT has reached a consensus, its value chain has to rely on the endorsement of the central agency.

For example, if real estate is to be listed in the form of NFT, under the current system, we still need the Housing Authority to endorse the value of this NFT.

We need to also understand that NFT protocols are data protocols, which are executed on the blockchain, circulated on the blockchain, and encrypted to confirm the rights of assets users and owners. The business to which NFT applies does not necessarily need to be decentralized.

Recent Events Within the NFT Industry

1. Binance’s new IEO project is not DeFi, but NFT. When CZ posted on Twitter to hint about the launch of a new project on Binance’s
LaunchPad, at that time, many people speculated that it would be a DeFi
project. Although the mass’s prediction was reasonable due to the fact that the DeFi space is hot and buzzy at the moment. Well, the new project turned not to be a DeFi project.

Eventually, when Binance’s IEO project was unveiled, the public’s prediction was wrong. It turned out to be a game project called The Sandbox, not DeFi, but an NFT project.

2. Does Binance choosing NFT instead of DeFi expose hidden opportunities in the NFT market?

Binance choosing an NFT project instead of DeFi is worth thinking about. The emergence of DeFi is a result of decentralized exchanges. The creation of the now popular Uniswap, as well as lending, pledge, staking protocols etc., are all closely related to decentralized exchanges.

Since Binance is the leader of centralized exchanges, if Binance chooses DeFi, although it can bring itself a wave of revenue, it will also make DeFi hotter and benefit decentralized exchanges more.

In this case, Binance did not choose DeFi, maybe it is the next game of chess! Why did Binance choose NFT? The tokens on Binance, MANA, and ENJ, are the current champions and runner-up on the NFT track.

In addition, NFT itself has its own vital attributes, and in 2020, it has gained increased attention from the public. The combination of these factors makes it reasonable to choose NFT.

So, why is Binance likely to lead a wave of NFT fever? Binance is the world’s largest crypto exchange, and there is no doubt about its ability to start its own NFT project, and ENJ is already under its command, which will naturally attract high attention.

Therefore, in my opinion, I believe that the NFT projects will gain increased exposure in the nearest feature, hence leading to investment opportunities. This is just my personal opinion, and does not constitute investment advice.

Introducing Other NFT Projects

In addition to ENJ and MANA, the NFT industry actually has several other
interesting projects. For the sake of this paper, the author assessed six booming NFT projects and listed them for your reference.

1. ENJIN

The ENJ project was funded on November 02, 2017. The total amount of ENJ token issued is 1 billion ENJ. The current price is 0.21USD, and the market value is $167 million. It ranks 47 in the world and is the leader of NFT.

Enjin is the largest online game community creation platform, established in Singapore in 2009, with 18.7 million registered players, and tens of millions of gamers visit the game platform every month.

ENJ uses the blockchain to allow players and content creators to add virtual items. The features of the blockchain, such as non-tampering and accounting, can make the content of virtual items more specific and full, even if the game is removed from the shelves.

Enjin’s strong physical support makes ENJ’s empowerment relatively easy, which is also an important reason why ENJ can become a leader.

Online exchanges: 23 such as Binance.

2. MANA

MANA is the token of the Decentraland platform. It was issued on September 18, 2017, with a total volume of 2.64 billion and a market value of 102 million, ranking 60th in the world and one of the leading NFTs.

Decentraland is a blockchain-based virtual world platform. In a decentralized world, content creators and game players can trade freely without intermediary fees.

Users can create their own blockchain identities on the platform and use the blockchain to record ownership. Any user can create their own virtual space on the platform, publish applications, create, trade, and obtain value. MANA can be used to create territories, purchase goods, and services, etc.

Online exchanges: 44 exchanges including Binance, OKEx, Huobi, and Coinbase.

3. SAND

The total amount of SAND is 3 billion, based on ETH, the current market value is 38 million US dollars, and the first echelon of NFT.

Similar to Decentraland, TheSandbox is also a virtual game world. Players can create digital asset NFTs by consuming tokens SAND, and upload them to the store.

At present, it has established cooperative relations with more than 50 partners such as ATARI, Crypto Kitties, Shaun the Sheep, etc. The innovation of The Sandbox is that users can create the game experience by themselves and encourage others to create, which can better attract game players who like to create.

Online exchange: Binance

4. AT

The total amount of AT is 1 billion, based on ETH, the current circulating market value is 2.71 million US dollars, entering it into the first echelon of NFT and be representative of the collectibles industry.

AT (Artfinity) is the traceability, transaction, and monitoring ecology of physical assets on the chain. The goal is to build a weakly-centralized custody and trading platform for physical assets such as collectibles and artwork and fundamentally eliminate the fraud and lack of liquidity of physical assets.

AT was first released in April 2019, and it has completed the custody of large-scale assets. It is NFT’s leading project in the field of collectibles and artworks. At present, there are mainly applications such as TokenBag, ATEX, and Fine Art in the ecology.

Artists can upload works on the chain, and users can participate in auctions and transactions of artworks and collections online.

Online exchanges: BKEX, Coinegg, HBTC, ATEX, Abit, and more than 10 exchanges

5. FFF

FFF is a new project. It was issued on June 16, 2020. The total amount is 10
billion. The current market value is 1.19 million US dollars and the price is
$0.02.

FFF is the abbreviation of Force For Fast Token. It is an automobile interest
community with cross-chain as the underlying technology and provides a platform for car and racing enthusiasts with services such as game competition and social networking.

The gas stations, dealers, vehicles, etc. inside the FFF game are all NFTs. Users can build their own cars and participate in races.

Online exchange: MXC and HBTC.

6. NASH

NASH was issued on May 24, 2018, with a total of 100 billion.

NeoWorld is a multi-person networked virtual world based on blockchain technology, and it is also a 3D space created by global users in collaboration.

Users can manage and construct territories through high-degree exploration and resource collection, and can even create and experience third-party content or applications on the territories, and create value and obtain wealth through this.

Online exchanges: 3 companies including Bithumb.

In addition, there are NFT tokens such as SLP, ZXC, RARI, LAR, etc., which are no longer described. If you are interested, you can search for it.

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I’m a Crypto enthusiast, and a lover of financial independence and freedom.

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