Li Qiwei: What is the true value of NFT?


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NFT is a unique proof of authenticity behind the collection, it cannot represent the full value of the collection.

Written by: Li Qiwei, founder of Litecoin Translation: Lu Jiangfei

Collectibles are always “not very reliable” because many artworks can be copied easily, cheaply and perfectly.

Imagine that if we have a technology that can perfectly replicate the artwork to the last detail, even the most powerful experts cannot distinguish the reproduction from the original artwork. Then we can copy the “Mona Lisa”, and everyone can hang a perfect copy of the “Mona Lisa” on the wall of their home-what will happen? The value of the “Mona Lisa” hanging in the Louvre will definitely be greatly reduced, because no one can prove that it is the original.

But this problem can be solved by NFT. NFT is a digital certificate and authenticity certificate for collectibles. For the “Mona Lisa”, this NFT can be signed by Leonardo himself and prove its original value. Unlike artworks, NFT digital certificates cannot be copied or forged, and this also raises a new question: How much is this NFT (or this artwork authenticity certificate) actually worth?

NFT certainly has its own value, but, can it be said that all the value of the work “Mona Lisa” has been transferred to the NFT? I don’t think it is. If everyone can copy the “Mona Lisa” perfectly on their own walls, it means that most people don’t really care whether they need to have a so-called “certificate of authenticity.”

For collectors, owning part of the value of collections can only be said to bring them a prestige of “I own and can display my collection”, and “I am unique. No one in the world can do this.” a little”. NFT reduced this value and became-“I have the authenticity certificate of this work, and it is unique. No one in the world can do this.”

After transferring the ownership of the collection from the actual collection to the authenticity certificate, most of the value of owning the collection will be lost. For example, NBA Top Shot NFT is a typical example. NBA Top Shot is a digital certificate for short video showing NBA players, anyone can download it. Indeed, with the help of NBA Top Shot, you can point to an exclusive link to the website, and you can proudly tell others “I own the moment when this star’s highlight moment is.” However, this value may soon disappear, because the NFT value actually comes from the NBA brand, not the token itself.

If there is no NBA support for TopShot, then NFT itself will become worthless. For example, if the website goes down, it is likely to have a huge impact on the value of TopShot NFT, because the connection between this digital certificate and the “artwork” (that is, the highlight moments of NBA stars) is Destroyed/disconnected.

The traditional star card is completely different from NBA TopShot. Even if the star card manufacturer and the NBA league go bankrupt, the physical card can still retain its value. For example, if the star card company Fleer goes bankrupt, the value of their Fleer Michael Jordan rookie card issued in 1986 will not be affected at all, and it can still sell for more than $500,000 today.

Li Qiwei: What is the true value of NFT?

Finally, I want to end with a picture I saw on the Reddit forum.

Li Qiwei: What is the true value of NFT?

This picture is very interesting because it reflects the real situation. Everyone in the world can download a song for 1 dollar and then enjoy beautiful music, but what is the value of a song’s NFT?


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