Know zero about NFT market caps, but if I pull up few years on the site below, hardly looks like a collapse:
https://nftgo.io/collection/cryptokitties/overview
Anyone with more knowledge able to clarify?
The collapse of cryptokitties, the first big blockchain game
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Re: The collapse of cryptokitties, the first big blockchain game
#12It hasn't collapsed, the endgame is just a much much higher difficulty
Re: The collapse of cryptokitties, the first big blockchain game
#13Earlier quoted context omitted.
Or selling NFTs to yourself to launder money.
How does that particular thing work? You run the exchange, then have dirty untraceable money traded on the exchange to dirty participant and you take the exchange fees? You'd have to KYC both participants, right?
Imagine you have $X million from a hack on wallet A, and you want to launder it. First, you run it through tornado cash (RIP) a few times and move them to wallets B1 to B1000. Then, you mint an "exciting NFT collection" on your public, KYC'd wallet C, list them on a "decentralized exchange", and have wallets B1 to B1000 buy those NFTs. Even better, seeing how fast your NFTs are selling out, a few suckers join in on the stampede and get mixed in alongside B1-B1000. Well, now on wallet C you have $(X - gas fees - minting fees) etc., that is totally legal and clean. You cash out on Coinbase, give the taxman his due, and you are good to go!
Re: The collapse of cryptokitties, the first big blockchain game
#14I feel that NFT pricing exuberance (or lack thereof) is distracting both critics and even fans from the core innovation here - 1. the capacity to signify a digital original and 2. to decentrally organize ownership (though it's more like possession) of these items.
The ultimate question for crypto as a whole is whether the mass market wants digital possession that transcends a single centrally managed database. Personally am convinced we'll get there, but the onboarding mustn't happen through speculation, but specific unique utility, mostly interoperability/composability.
Re: The collapse of cryptokitties, the first big blockchain game
#15One thing I don't see addressed in this article is that as far as I know, it's basically impossible to trust the reported price or volume of NFT transactions, because there's no way to distinguish fake wash trades from real ones. So it's hard to draw any conclusions about whether the data reflects an actual peak in user activity, or just a peak in scams.
Isn't that always the case? My friend was talking about a rare Magic The Gathering card being worth a silly amount of money... Except the card had only been sold once or twice at that price.
Unless you have enough comparable items (e.g. paintings by the Dutch masters) it's really difficult to determine the value of something that's rarely sold.
Re: The collapse of cryptokitties, the first big blockchain game
#16I feel that NFT pricing exuberance (or lack thereof) is distracting both critics and even fans from the core innovation here - 1. the capacity to signify a digital original and 2. to decentrally organize ownership (though it's more like possession) of these items. The ultimate question for crypto as a whole is whether the mass market wants digital possession that transcends a single centrally managed database. Person…
The major distraction is that a 'digital original' is a fiction. I can ignore your blockchain and make any digital IP fungible.
Re: The collapse of cryptokitties, the first big blockchain game
#17I feel that NFT pricing exuberance (or lack thereof) is distracting both critics and even fans from the core innovation here - 1. the capacity to signify a digital original and 2. to decentrally organize ownership (though it's more like possession) of these items. The ultimate question for crypto as a whole is whether the mass market wants digital possession that transcends a single centrally managed database. Person…
>whether the mass market wants digital possession that transcends a single centrally managed database
Even if the market wants this, it's certainly not what is being offered. If OpenSea delists your NFT in their single centrally managed database, it may as well no longer exist.
Re: The collapse of cryptokitties, the first big blockchain game
#18One thing I don't see addressed in this article is that as far as I know, it's basically impossible to trust the reported price or volume of NFT transactions, because there's no way to distinguish fake wash trades from real ones. So it's hard to draw any conclusions about whether the data reflects an actual peak in user activity, or just a peak in scams.
Isn't that always the case? My friend was talking about a rare Magic The Gathering card being worth a silly amount of money... Except the card had only been sold once or twice at that price. Unless you have enough comparable items (e.g. paintings by the Dutch masters) it's really difficult to determine the value of something that's rarely sold.
"value" is kind of a made-up thing, so I'd argue that by selling something for the first time you're setting its value, not determining it
Re: The collapse of cryptokitties, the first big blockchain game
#19Calling CryptoKitties a "game" is a bit generous.
Everything is a game once you look for an equilibrium.
Re: The collapse of cryptokitties, the first big blockchain game
#20Know zero about NFT market caps, but if I pull up few years on the site below, hardly looks like a collapse: https://nftgo.io/collection/cryptokitties/overview Anyone with more knowledge able to clarify?
I think that you can get your answer from the tooltip on that market cap widget:
> Market capitalization is calculated as the sum of each NFT valued at the greater of its last traded price and the floor price of the collection, respectively.
So their market cap calculation does not attempt to capture a current fair market value for all outstanding CryptoKitties. For a non-fungible asset like this, just using the last sale price like this will always give a lagging indicator. In some sense, you could argue that it lags the fair market value by a possibly infinite amount of time.
Concretely, this method would assume that the Dragon cryptokitty that the article discusses has been worth a constant 600 ETH that hasn't fluctuated by even one iota in over 4 years.
I don't know how much better one could do for a market cap calculation. It certainly wouldn't be practical to individually appraise all 2 million cryptokitties on a regular basis. Perhaps one could look at how prices of more frequently traded cryptokitties have fluctuated over time and use that to generate a scaling factor for the old ones. But even that might have downsides. How do you account for the possibly large percentage of cryptokitties that belong to wallets whose keys have been lost? It doesn't make sense to count those into the market capitalization, because they are no longer part of the market. The method being used at least has the advantage of being clean and objective. It's just not particularly useful, is all.