Why Competition Between NFT Marketplaces Is Good News

Why Competition Between NFT Marketplaces Is Good News

While crypto is in a bear market the one sector that has weathered the storm relatively well is NFTs. A new report estimates the global NFT market will be worth $231 billion by 2030, growing at a compounded growth rate of 33.7% over the next eight years. However, this quarter the NFT market has been on somewhat of a roller-coaster ride, though in terms of trading volume and sales compared to Q2 of 2021 they are up by 533% and 59% respectively. In addition, metaverse NFTs also had a good quarter, with the trading volume for ETH-based collections has increased by 101%, while Polygon collections have unfortunately declined by 26%. Overall, it has been a growth of 96%, according to DappRadar.

If that positive trend whets your appetite to get involved in NFTs trading, then you’re not alone. The recent crypto bull market was like an electromagnet for investors who flocked to NFTs. Either to try to get in early by getting whitelisted on a project and then sell once the particular project went live, or purchasing them from another user before selling them on one of the growing number of marketplaces. As reported in late 2021 by leading crypto analytics firm Chainalysis, “NFTs are far from a surefire investment” however: “Transaction data from the OpenSea marketplace shows that just 28.5% of NFTs purchased during minting and then sold on the platform result in a profit. Buying NFTs on the secondary market from other users and flipping them, however, leads to profit 65.1%of the time.” In plain English what this means is that your average NFT buyer is likely to be out of luck when it comes to turning a profit on a newly minted or a secondary market NFT trade.

If those headline figures haven’t put you off, what can help you can see the wood for the trees when it comes to trading NFTs? A little context might help for starters; namely the commercial pressure from the bear market and the competition between NFT marketplaces mean this could be a good time to up your NFT trading game.

NFTs are traded in NFT marketplaces, which are well-organized platforms for selling digital collectibles. As a rule of thumb NFTs are sold at a fixed price, while others are auctioned off. Opensea is by far the largest NFT marketplace, with a 90% market share by dollar trading volume across multiple marketplaces in 2021. But what’s changed in the last few months is that OpenSea’s market share has started to diminish. In response OpenSea has improved its service with the launch of Seaport, an open-source trading protocol which enables trading multiple NFTs at a time. And with OpenSea’s purchase of NFT market aggregator Gem, its likely they will go up against Uniswap, which recently acquired NFT aggregator platform Genie. Finally, despite the failure of Coinbase’s NFT offering, eBay has both purchased marketplace KnownOrigin and in partnership with OneOf, recently announced its first foray into the NFT space with the launch of a series of sports themed, featuring iconic athletes.

What hasn’t changed is the fact that most NFTs are released in collections. A collection is a group of NFTs that are all different but share some characteristics. Bored Ape, the most popular NFT collection, has a total sales value of approximately $2.5 billion. While the top ten NFT collections had over $15 billion in trading value in 2021, accounting for roughly 60% of the total NFT market. The fact that a few collections dominated a large portion of the market is most likely due to NFT investors’ preference to trade within collections. They do this because it is easier to value an NFT in a collection when there are “similar” NFTs to compare it to. Experienced investors know where the money is, therefore, they trade NFTs within those collections.

These NFT traders speculate and identify a specific collection with liquidity, trade, and keep flipping until they make a profit. The truth is that most speculative traders do not profit from trading NFTs. Information is key, and traders who have information on the collection with liquidity are more likely to make a profit. Instant tradability of non-fungible tokens will lead to higher liquidity. NFT marketplaces can cater to a variety of audiences—from hardcore traders to more novice players—allowing for greater exposure of the assets to a wider pool of buyers. In the same way that the ICO boom of 2017 gave birth to a new asset class driven by instantly liquid tokens, NFTs expand the market for unique digital assets.

Another factor we must consider is fraud in the NFT sector. We’ve seen a lot of bad actors sell and trade NFTs they don’t own or have access to. I believe that it is critical for every NFT trader to conduct their own research to determine the best collection to trade. In simple terms the NFT sector is still growing, and there are still certain gaps to fill.

Market liquidity is still concentrated in a few NFT collections, and a trader must be able to identify those collections where the demand is to make a profit. I am also about to publish an in-depth guide to NFTs in a new book, said I believe the NFT market was only going to get stronger in 2022. “The growth of NFTs on rival platforms to Ethereum such as Solana , and the competition with OpenSea from players ranging from DEX leader Uniswap to e-commerce king eBay, shows how dynamic this sector is. Despite the collapse of the wider crypto market with the Luna Terra collapse, the demand for NFTs shows no stopping. I was struck also by how GameStop’s new marketplace launched just a couple of days ago is already doing well, with ETH in trading volume too.”

 

Original Source: https://www.benzinga.com/22/08/28375889/why-competition-between-nft-marketplaces-is-good-news

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Reasons why Singaporean investor Lian is selling off Chinese equities

Reasons why Singaporean investor Lian is selling off Chinese equities

Singaporean investor Anndy Lian has been selling off Chinese equities for months in order to lessen the vulnerability of his portfolio to the second-largest economy in the world.

Once a frequent investor in Chinese software firms, Lian now sees China as a riskier investment as the economy is clouded by the nation’s autocratic turn under President Xi Jinping and ongoing “zero COVID” lockdowns.

In a conversation with Al Jazeera, Lian told that he had started gradually lowering his exposure since 2021 as that was the time when the downward trend had become obvious. He has sold off his holdings this year as things seem to have gotten worse.

He further stated that his main worry as an investor was instability. At the moment, China’s general climate is unstable, and this affects more than just the financial industry.

Lian is one of an increasing number of foreign investors who are abandoning China after several years of record inflows.

The first quarter of this year saw the biggest ever fall in foreign investors’ holdings of assets denominated in yuan from China, totaling more than USD 150 billion.

Between February and May, there was a USD 61 billion sell-off in Chinese bonds alone. Approximately USD 300 billion could leave the country this year, more than twice the USD 129 billion that left last year, according to predictions made by the Institute of International Finance, a think tank based in Washington.

As investors evaluate the risks of harsh COVID restrictions and broad crackdowns on private enterprise, which have ensnared industries ranging from tech to real estate and education, the tendency reflects an increasingly pessimistic economic picture.

After growing by 4.8% in the first quarter, China’s economy barely escaped contraction in the second quarter, expanding by just 0.4%.

The impacts of the crackdown on the IT industry last year, which wiped out the stock values of big giants like Alibaba, Tencent, and Didi, are still being felt, according to Lian.

 

Original Source: https://internationalfinance.com/reasons-investor-anndy-lian-selling-chinese-equities/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Massive Volume Pushes Bitcoin Briefly Above $22,500: Here’s Why There’s A Spike In Activity

Massive Volume Pushes Bitcoin Briefly Above $22,500: Here’s Why There’s A Spike In Activity

After being in the red for over a month, the largest digital currency by market capitalization, Bitcoin BTC/USD, has pared some of its losses and is trading up about 12% higher over the past week, making a brief high of $22,527 along with a spurt in volumes on July 8, before settling back to around $21,700 levels.

Experts caution the unexpected price uptick as a “one-off event” that is most likely a reaction to crypto exchange Binance’s decision to eliminate fees on BTC spot trading, and that it in no way signals a price reversal.

No substantial reason for price surge

Anndy Lian, Chief Digital Advisor to the Mongolian Productivity Organization, tells Benzinga the sudden price surge in BTC is unsustainable as there is no catalyst for the move.

“The only piece of good news that is closely linked to the surge would be Binance’s zero fees Bitcoin promotion. There were many people who were trying to gain VIP tiers, which resulted in a massive transaction volume. That volume can be subjected to wash trading and manipulations,” he says, adding that the incident is one-off.

Liquidation of leveraged short positions

Even as the price of BTC surged despite the lack of any significant announcement, Glassnode’s futures shorts liquidations metric reveals a substantial number of liquidations of leveraged short positions – from $10.23 million to $29.42 million between July 6 and 7, which could have exerted bullish pressure to propel BTC above the $22,500 level.

BTC price likely to fall back down

Raj Kapoor, founder and CEO of India Blockchain Alliance says given the crypto’s history of volatility, this uptick is in no way a long-term reversal and that BTC’s price is likely to fall back down.

“The uptick was accelerated when Binance put an offer [of] zero-fee trading for Bitcoin, with plans to eliminate the charges for more tokens in the future.  This was followed up with a stock market rally following the release of the Federal Reserve’s minutes,” Kapoor said.

Experts point out that the crypto market may not have hit the bottom as yet due to fears of a recession, several crypto deals falling apart, surging inflation, geopolitical crises, and rising interest rates. These concerns continue to drive extra short-term volatility in the crypto and stock markets.

Higher currency outflows

Exchange outflows have risen from 20,495 BTC against 18,648 exchange inflows on July 3, according to Glassnode. While on July 7, there were 50,966 BTC in exchange outflows against 43,601 BTC in exchange inflows.

Higher exchange outflows have led to higher buying pressure for BTC, with most of the volumes coming in from the retail segment. Metrics from Santiment, point to a significant downside in the supply held by whales since July 4, indicating that whales have been gradually reducing their positions as the price of BTC climbs higher.

Economic downturn priced in

Sharat Chandra Vice President of Research and Strategy at EarthID, says BTC has begun exhibiting decisive price action as investors have priced in the incoming data about an economic downturn.

“Lack of liquidity coupled with lower trading volume accounts for Bitcoin’s intraday activity. Bitcoin prices will continue to be volatile depending on the incoming data about the impending recession,” Chandra says.

BTC surge with high volumes increases optimism

Jenny Zheng, NFT Business Development Lead at Bybit, tells Benzinga that BTC’s hourly chart gives an optimistic outlook and a 4-hour chart suggests a double bottom formation, signaling a bullish price movement ahead.

“The volumes were only on Binance. This could be because of the removal of Bitcoin spot trading fees on its anniversary. But such action has certainly triggered more buys for Bitcoin on other exchanges too. This is reflected in various communities that I am in,” Zheng says.

 

Original Source: https://uk.investing.com/news/cryptocurrency-news/massive-volume-pushes-bitcoin-briefly-above-22500-heres-why-theres-a-spike-in-activity-2683826

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j