/ Art Forum

The Creation of NFT Value,

Virtual Reality Integration

The co-founder of Echo X Neil Lee and Kelvin Chung, the partner lawyer of KPMG are having conversation together to lead everyone to have a better understanding in the practical application of NFT. NFT (Non-Fungible Token), since the release of Bitcoin in 2008, is a blockchain technology that has caused a hot topic across Internationally. Neil Lee gave a detailed introduction to NFT in the third Art Forum of ONE ART Taipei 2022, as the beginning of this lecture, he explained the NFT in various views from the development context and the current phenomenon.

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"Key Events of NFT: The sky high price of digital art in 2021."

#1 In March 2021, Christie's auctioned a $69 million NFT work - the first tweet in the history of the Twitter founder. The content of this NFT work is "just setting up my twttr (just set my Twitter)."


#2 In May 2021, NBA star Stephen Curry put on the NFT digital avatar "Bored Ape", the price is about 180,000 US dollars (55ETH). In order to catch up with Stephen Curry's footsteps, fans have created a new wave of NFT digital avatar topics.

#3 At the beginning of 2021, the NBA Top Shot digital player card will be used as an NFT. The content of the card is a short video of the players' wonderful moments, and it is provided to fans for collection in limited release and different card levels. Among them, LeBron James' slam dunk video was released in 2021. It was sold for about NT$10 million in April.

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"Key Events of NFT II: Origin, Trading Market, Classic Cases."

#1 In 2019, Dapper Labs, which developed Crypto Kitties, officially became the first investment case of Taiwanese company AppWorks in the blockchain field. Crypto Kitties is the first NFT concept to appear. It adds the concept of "pregnancy" to the pet raising game to create a unique pet cat for players.

#2 The world's largest NFT trading market, OpenSea, is based on the trading market on Ethereum. According to Juheng.com's report, the total trading volume reached 23.5 billion US dollars, ranking first in the world.

#3 Music creation can also be traded through NFT. For example, Sakamoto Ryuichi held the only live performance recording during his fight against the disease on July 30, 2021. The creator selected 595 right-hand notes from the masterpiece "Merry Christmas Mr. Lawrence ''. , which is sold in the form of NFT in the form of a score picture of the position of the note.

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"Talking about the value and trend development of NFT"

It is impossible for NFT to replace traditional auction houses and galleries, but artists can use NFT for marketing and make good use of new tools to connect to the future market. E-commerce has emerged in this generation, and NFT proves that the form of "Value Exchanged" has changed, just like the more people who sign historical and ancient cultural relics, the higher the value may be, in which "scarcity, time value formation" The trinity of a system, the amount of investment speculation in the past" can be used as a criterion for judging the value of NFTs.

The part that deserves attention is that the top 20 contemporary art auctions are on par with digital artists. For example, the NFT of TIMES magazine has created historical significance and created the value of buying "the moment of the brand (Moment)". And this value is recognized and maintained by the community. In the process of fighting between virtual and real values, another classic recent case is the process of deliberately burning Banksy's art painting "Morons". It was recorded as a video and uploaded to the NFT trading platform Rarible. The high price of 380,000 US dollars was sold, which is about 4 times the original price of the physical works. The creation of these values ​​extends the application of asset security.

Since this year, the hot topic of the metaverse has been discussed continuously. Technology maps include blockchain, NFT, and virtual currency. Only with strong economic connections can one have the motivation to join the metaverse and truly connect the virtual and real economy. The common globally recognized agreement makes the data easy to flow, and the liquidity is created by the community consensus. The stronger the consensus, the higher the value; in the community the participants have more dominant power and share common interests, which means that everything can make more value judgments on the chain; a new business model is formed, and many applications are launched.

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"NFT Trends and Application"

#1 Group Tag: Ethnic identity, like the NFT "Bored Ape" was hyped by the community of early stage virtual currency holders, because the price cost of virtual currency in the early stage was relatively low, later entrants can join this community by purchasing and owning community tags, and get equal rights.Similarly, major global brands have entered the Metaverse in order to gain ethnic support. The Metaverse is mostly a subculture of the newly rich, and most of them are under the age of 30. It is one of the best communication channels for brands to connect and integrate into this group.

#2 Fans Gathering: When the group is established, value is generated from "identity consensus". Like a VIP membership card, it has exclusive service, For example, Echo X's success case "We Are What We Eat" NFT, is linked to VR with food menu, which create the value of the project, create an "Curatorial art boutique", enjoy exclusive experiences such as reservation service, boutique restaurant exhibition, and exclusive cuisine.

#3 IP Protection and Proliferation: Both Samsung and LG TV have announced that future TV products will support NFT, the NFT collectibles, videos and Metaverse purchased by consumers in the future can be viewed and used on a larger screen, big brands are now  represents the importance of power authorization of NFT publications.

#4 "The easiest way to enter WEB 3 is to open your own NFT wallet. When you have experienced owning an NFT, you will know what a NFT is. Take the opportunity!"

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Kelvin Chung, the partner lawyer of KPMG introduced the legal issues of NFT in the Taiwan market, focusing on technology law, and provided advice on how to avoid fraud. A brief introduction to NFT is like a commodity exchange coupon, which is a certificate established by community trust.There are few existing NFT laws in the Taiwan market, and the Financial Regulatory Commission currently defines NFT as a virtual commodity (digital commodity), and what we can control is copyright.The characteristics of the blockchain industry include decentralization, anonymity, secondary market conditions, because NFT products do not contain IP authorization when they are sold, consumers cannot copy them in large quantities after purchase. On the contrary, consumers own the property rights and property rights of the products. Details and specifications are specified in the contract. In addition, the virtual currency money laundering prevention law will be launched on July 1, 2021, and virtual currency exchanges must meet the same KYC (Know Your Customer) requirements as traditional banks. This is the special law that has the greatest impact on platform operators at present. Two professionals introduced NFT technology in a light and easy-to-understand tone, so that the audience can understand that works of art can participate and record through technology and technology, so that the value can be guaranteed and circulated forever. 

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| ONE ART Taipei 2022 Art Forum |

ONE ART Taipei 2022 held three art forums at the beginning of the year, focusing on the global art market, new generation of art collection and the value of NFT. We specially invited 《Cans Contemporary Art News》Editor in Chief Nai-Ming Zheng together with independent curator Emerson Wang to discuss the topic on Has the epidemic made the art industry crazy? —— Let’s view the perspective of the art industry regarding epidemic and art ecology. Well known young collector Matthew Shieh and Sophie Wang to discuss the topics on The phenomenon and collection perspective of Gen Y and Z. At least, we invite  Neil Lee, the co-founder of Echo X and Kelvin Chung, the partner lawyer of KPMG to have a conversation on the Creation of NFT value, Virtual Reality Integration.