The NFT craze has reached new heights around the world, as many major corporations and players enter the market. Sino Global Capital, an investment firm, believes the sector is “growing rapidly,” primarily in China.
Companies based in Asia, such as Alibaba, visual content media agency Visual China Group (VSG), NetEase, a major internet technology company, and ByteDance, the parent company of social media platform TikTok, have already announced investments in the NFT market.
This has coincided with a similar level of participation from Western corporations and high-net-worth individuals. VISA recently purchased one of the NFTs that comprised the popular collection CryptoPunks. This could spark another wave of mass adoption, ushering in a new era in the NFT craze.
According to Sino Global Capital, there are key events that point to this possibility. The first is the purchase of CryptoPunks by major company founders such as Cai Wensheng, founder of Meitu, Feng Bo, founder of Dragonfly Capital, and others.
These individuals paid 125 ETH and 1600 ETH for CryptoPunks #8236 and #7252, respectively.
Furthermore, retail investor participation in the market. The NFT Craze has been fueled in part by small investors looking to flip their assets for a quick profit, as well as millennial investors who prefer to invest in digital assets as a form of luxury goods.
This could see another surge as platforms around the world attempt to capitalize on the fractionalization of popular NFT collections to attract new users. According to Sino Global Capital, a social network called People’s Punk was launched in China with the help of 173 users.
As a result, many people can co-own a CryptoPunk. In the case of People’s Punk, it’s 173, as represented by the fragmented token $DDDD. Surprisingly, the token was adopted as a payment token by the marketplace OpenSea.
NFT Collections and New Initiatives That May Increase Adoption
Fractionalizes At the time of writing, NFTs are worth millions of dollars, and people are finding new ways to interact with these assets, as demonstrated by the above-mentioned initiative. There are others that could help propel the NFT Market into its next phase of adoption.
According to the firm, the “CryptoPunk Couple” project, an experiment designed to “make Punks into couples,” has raised a significant amount of capital from retail investors. According to the firm, the project raised over 400 ETH in a short period of time.
3. CryptoPunk couple initiated by Kong JianpingA punk societal initiative led by Kong Jianping, CEO of Canaan Creative, participated in by 50+ other Chinese crypto players- everything starts from a wechat group where “a bunch of friends brainstorm on a daily basis”. pic.twitter.com/YjUOWuImuw— Sino Global Capital (@SinoGlobalCap) September 6, 2021
Former BitMEX CEO Arthur Hayes recently stated in a blog post that the NFT market could benefit the art industry by lowering transaction costs, reducing intermediaries, and reaching a wider audience.
Furthermore, Hayes claimed that people invest in these assets to gain social status and access to the “exclusive communities” that only the NFT owner has access to.
In any case, the NFT revolution appears to be in its early stages, with people still debating whether the market is a bubble or the future of entertainment, gaming, movies, and other content creation and distribution mediums.
In the weekly chart, ETH is currently trading at $3,949, representing a 22.2 percent profit.