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NFT Mania - Hype Or A New Paradigm? CryptoPunks, BAYC, Generative Art, Loot Explained - YouTube
Channel: Finematics
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nfts are clearly one of the hottest
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topics in crypto at the moment crypto
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banks autoglyphs board apes pudgy
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penguins some of them selling for
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hundreds of thousands or even millions
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of dollars so rnft is just a hype or a
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paradigm change what are some of the
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most interesting nfts out there and what
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are the biggest challenges of this new
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space you'll find answers to these
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questions in this video
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before we begin if you want to learn
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more about decentralized finance and the
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technology behind it make sure you
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subscribe to my channel hit the bell
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icon and enable all notifications you
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can also consider supporting us on
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patreon and joining our community on
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discord
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let's start with a quick recap of what
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nfts are in the first place
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an nft or a non-fungible token is a way
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of representing ownership in the digital
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world
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since the dawn of our civilization
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humans have been collecting rare items
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from seashells and gems to coins post
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stamps and pokemon cards nfts are just
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digital versions of that
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collectibles pieces of art game items
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domain names and even complex bespoke
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financial instruments all of these can
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be represented as nfts in contrast to
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cryptocurrencies like bitcoin or ether
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where each unit is interchangeable nfts
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are unique at least in most cases the
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creator of an nft project can decide on
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the exact parameters of their nfts some
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of the common examples are
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only one nft per unique piece of art
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artists that create individual pieces
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like people follow this approach a
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collection where each item has a unique
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combination of different traits crypto
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punks board apes a collection where
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there is a set number of the same item
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in the collection usually used for card
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collectibles like my curio cards
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the scarcity of individual nfts can be
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verified on the blockchain where the
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project was created for example we can
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tell with 100 certainty that there were
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only 10 000 original crypto banks
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created on ethereum the authenticity of
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nfts can also be instantly verified by
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checking that the nft we own was created
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using the original smart contract of a
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particular project the blockchain also
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provides a quick way of checking the
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provenance of each individual nft which
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is basically the history of its
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ownership if you'd like to dive a bit
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deeper into the technical aspects of
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nfts and learn for example what
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fungibility is or what different nft
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standards like erc721
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and
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erc-1155 are you can check out my
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previous video about nfts here now let's
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go through some of the most popular nft
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projects out there we couldn't start
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this with anything other than crypto
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punks crypto punks very often called
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just punks are one of the oldest and one
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of the most significant nfts the project
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that was pretty much forgotten about
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during the depth of the
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2018-2019 bear market resurfaced at the
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end of 2020 and took the world by storm
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cryptopunx launched in june 2017 by
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larval labs a two-person team was one of
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the first nft projects presented as a
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collection of similar items where the
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uniqueness of each item was achieved by
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having a distinctive combination of
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different traits such as hats sunglasses
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and hairstyles each punk is a unique
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algorithmically generated 24 by 24 pixel
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art image
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in 2021 it's crazy to think that crypto
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punks now worth around 350 000 for the
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cheapest one were once claimable for
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free and users were able to mint them by
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paying a few dollars for an ethereum
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transaction
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crypto punks initially started gaining
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popularity within the crypto community
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itself but this quickly expanded to the
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outside world with famous artists and
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celebrities joining the bandwagon jay-z
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othello beckham jr steve awoke to name
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just a few in may 2021 a collection of
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nine punks was sold at christie's one of
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the most famous auction houses for a
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whopping 16.9 million dollars another
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prominent auction house sodebees sold a
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rare alien bank for an astonishing 11.8
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million dollars in june
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in august 2021 visa announced a purchase
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of a crypto punk as an addition to their
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collection focus on historically
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significant items in commerce this
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basically skyrocketed the floor price
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for a punk which is the lowest amount
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that someone is willing to sell a punk
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for from around one hundred thousand
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dollars to as much as four hundred
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thousand dollars crypto punks are
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clearly one of the most significant nfts
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and are very often referred to as the
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holy grail for any nft collector punks
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also initiated another phenomenon the
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pfp mania pfp which stands for profile
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picture is a type of nft that is
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suitable for an online avatar punk
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owners including the previously
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mentioned celebrities started using
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panks as their profile pictures on
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twitter this quickly led to the creation
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of new pfp-focused nft projects as
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people who were already priced out of
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punks started searching for something
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more affordable the launch of multiple
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pfp pfp-focused projects ignited the pfp
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mania with people changing their profile
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pictures to nfts on twitter discord
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telegram or even linkedin
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one of the earliest projects that
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benefited from the pfp phenomenon was
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bored apes yacht club often just called
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board apes or bayc
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board apes created in april 2021 by hugo
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labs launched a 10 000 element nft
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collection featuring high resolution
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image art of apes with different traits
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from common apes with normal fur and
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beanies to extremely rare ones with
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golden skin and crowns yacht club in the
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name wasn't chosen by accident as each
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nft from the collection acts like a
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membership card and grants access to
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member-only benefits one of them being a
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merge shop board apes initially sold by
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hugo labs for 0.08 eth are now trading
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in the range of 48 for the cheapest ones
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bayc is a good example of a project that
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created a strong community of nft
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holders
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similarly to crypto banks board apes
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will be featured in one of the upcoming
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christies and saw the bees auctions
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the pfp mania also resulted in the
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creation of multiple other pfp nft
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projects most of them were just low
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effort clones of one of the popular
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projects but there were also exceptions
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some of them include cool cat nfts
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featuring a collection of blue cats with
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different features was created by an
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artist drawing the same blue cat for
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over 10 years
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pudgy penguins also gained a lot of
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traction and were even featured in the
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new york times their main feature they
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are super cute
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world of women a collection featuring
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unique cool and diverse women was
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created with the aim of bringing more
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diversity and representation into the
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nft space besides completing new nfts
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the teams behind already successful
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projects can decide to launch new
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collections very often inspired by their
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original work the two most prominent
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examples are mibits released by the
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creators of crypto punks and mutant apes
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released by the creators of board aims
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this approach allows for expanding the
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existing communities and including
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people who might have been priced out of
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the original collections although pfps
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seem to be the main focus of the nft
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community let's not forget about other
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super interesting niches within the nft
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space one of which is generative art
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generative art lies at the intersection
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of art and code artists instead of
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drawing pieces of art by themselves
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write an algorithm that generates the
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art the art is always generated at the
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time of minting a new nft and uses an
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input parameter such as a transaction
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hash that will be forever associated
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with this particular token this allows
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the users to feel like they are taking
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part in the art creation as two
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different users meaning a piece of art
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from the same collection would end up
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with different results autoglyphs are a
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prime example of generative art the
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collection of 512 items also created by
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larval apps was generated purely on
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chain this was possible as the art is
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created out of basic ascii characters
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that can be displayed as a result of
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executing the autoglyph smart contract
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itself
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at the time of creation each autoglyph
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had a different probability for drawing
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certain patterns hence some pieces are
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more rare than others at the time of
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making this video the cheapest
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autoglyphs are listed for 475
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eth which is worth around 1.8 million
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dollars other extremely popular pieces
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of generative art come from art blocks
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the art features on the artblock
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platform is created using a script
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written in a programming language called
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5pjs each collection has its own script
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that is stored on the ethereum
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blockchain a program written in 5pjs can
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generate different shapes with different
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organizations textures or colors
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depending what the creator wants to
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achieve
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art blocks curated is the most
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prestigious collection with the most
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sought-after pieces of generative art
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such as ringer by dmitry cherniak and
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videnza by tyler hobbs the most
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expensive hidenza sold for 1000 eath
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worth 3.3 million dollars at the time of
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purchase in august 2021 generative art
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explores an interesting concept of
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artists becoming coders or maybe coders
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becoming artists what happens if a
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generative algorithm could be created
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without any human help sounds quite
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sci-fi for now but i wouldn't be
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surprised if in the future the most
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expensive piece of art was an nft
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created by some kind of an ai
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besides pfps and generative art there
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are plenty of other types of nfts
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available artists can create nfts for
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their individual pieces of art a good
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example is people who sold the most
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expensive nft to date representing 5000
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days of his work for 69 million dollars
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at christie's in march 2021. fun fact if
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people kept the 69 million dollars in
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eth it would be worth over 140 million
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dollars now
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gaming is another area where nfts have
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become more and more important axi
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infinity cryptokitties and avagochi are
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just a few good examples here and they
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probably deserve a whole separate video
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in the future metaverse is another big
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area with huge potential for example the
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land sold on decentraland is represented
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as nfts i also wouldn't be surprised to
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see more and more popular pfps being
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used as avatars in the metaverse there
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are also a lot of non-pfp collections
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that have become really popular one of
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them is ether rocks where nfts of
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different rocks are being sold for
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millions of dollars the main feature
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they were one of the first nfts and
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there are only 100 of them they were
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even recently featured in one of the
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popular business tv programs
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besides pictures nfts can also represent
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short clips or music
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nba top shots became extremely popular
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at the beginning of 2021 by selling
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clips of the most viral moments in mba
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euler beats is a set of algorithmically
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generated music stored on chain on
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ethereum
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even tweets on twitter could be sold as
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nfts the first tweet ever by jack dorsey
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was sold in march 2021 for 2.9 million
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dollars with new nft projects launching
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pretty much every day we also have to
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remember about a few challenges of this
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still extremely new space
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to start with not all nfts are stored in
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the same way one of the main features of
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nfts is their provable ownership
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verifiability and provenance as we know
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this is achieved by creating nfts on
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decentralized blockchains such as
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ethereum but here comes a problem
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although the beautiful high-resolution
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pictures of apes or penguins are cool
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there is no way the image files
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representing them can be stored on the
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blockchain itself this leads to a
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situation when most nfts only include a
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link to the actual art and its metadata
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which is then stored off-chain there is
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a whole range of options when it comes
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to storing data off-chain some projects
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use centralized servers others try to
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improve the situation by uploading their
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metadata and art to ipfs other solutions
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like rwith are also gaining traction
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generative art and certain low
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resolution nfts are some of the
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exceptions here as they can be entirely
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stored on chain
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intellectual property rights are also
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another big issue this is mostly as
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there are a lot of inconsistencies
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between different projects some nfts
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allow the owners to use them however
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they want other projects limit the
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potential use of their nfts and still
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assign the ip rights to the creators
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ethereum gas fees can also certainly be
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a problem most nft drops are launched in
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the first com first served model this
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attracts a lot of bot activities and can
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spike up gas prices to crazy amounts
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resulting in normal users either not
[793]
getting into the sale or massively
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overpaying for their mint other models
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such as dutch auctions notably used by
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art blocks are also being explored here
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it will be interesting to see if nfts
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get adopted on layer 2 as this could
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certainly alleviate some of the gas
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pressures from ethereum
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price discovery in an illiquid market
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such as the nft market can also be a
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problem fortunately there are a lot of
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projects focusing on tokenizing nfts
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which helps with improving liquidity and
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can be used for things like discovering
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the floor price of certain collections
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nftx and fractional art are some of the
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popular solutions here another major
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challenge is the infrastructure for
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buying selling and displaying nfts at
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the moment most trading volume happens
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on openc where the curation of projects
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is centralized it would be amazing to
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see openc decentralizing in the future
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and other more decentralized solutions
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getting adopted over time in the end i
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believe that most of these challenges
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will be solved sooner or later and they
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are just normal pain points of a
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completely new and exciting industry
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besides ethereum which has become pretty
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much the standard for launching nfts
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there are other layer ones that allow
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for minting and of these solana thesis
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and polygon are gaining some traction in
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this field
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another interesting development was the
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creation of daos with the main purpose
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of buying nfts people who wouldn't be
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able to afford certain entities by
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themselves can come together and form a
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dao bot nfts can be later tokenized and
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distributed to the members of the dao a
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good example here is pleaser dao that
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bought the original dogecoin nft for 4
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million dollars
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it will also be interesting to see nfts
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being used as marketing tools projects
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will be able to enter their own nfts or
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invite certain nft owners to an early
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releases of their products
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it's also amazing to see new things
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being tried in the nft space one of
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which is the recent launch of loot
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instead of creating an nft with an image
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described by certain metadata blued
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flipped the whole process upside down
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the loot nfts only contain the metadata
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that describes a set of items in a
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hypothetical rpg game it's up to the
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loot community to decide how to use or
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even how to visualize these items it
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will be super interesting to see how far
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loot can go in the future there are
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pretty much no boundaries on how far
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such an idea can be pushed but the main
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challenge is to coordinate the community
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over long term goals instead of focusing
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on quick wins like unlimited airdrops
[950]
with opencv volume hitting over 3
[952]
billion dollars in july we are clearly
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in a very interesting time for mfts
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celebrities using board apes as their
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profile pictures major business channels
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discussing ether rocks visa buying
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crypto punks and new nft funds popping
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up on the one hand it feels like nfts
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just got their mainstream attention on
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the other hand the market with hundreds
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of projects launching every week may
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look a bit overheated
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in the end it's worth noting that this
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is very common in a completely new space
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and resembles a lot of periods of
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exponential growth in crypto personally
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i think that whatever happens to the
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market in the short to medium term
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doesn't really matter and nfts are here
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to stay the quality projects will most
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likely appreciate in value over time the
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same cannot be said about thousands of
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copycat projects and low quality cash
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grabs i believe that nfts will
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completely revolutionize the internet in
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the future most things we own in the
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digital world will be nfts game items
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collectibles cool pieces of art and even
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our metaverse gear all of these have the
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potential to become nfts
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so what do you think about nfts what are
[1022]
some of your favorite projects in this
[1024]
space comment down below and as always
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if you enjoyed this video smash the like
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button subscribe to my channel and check
[1031]
out filmatics on patreon to join our
[1033]
community thanks for watching
[1038]
you
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