[PRESS RELEASE – Tel Aviv, Israel, 27th June 2022]
In 1634, Dutch investors became obsessed with colored tulip flower bulbs, their price rising in proportion to their value. This period is known as Tulip Mania. In February 1637, the cost of individual bulbs exceeded the annual income of a skilled craftsman. Speculative purposes based on trade intensified the economic bubble, and by the end of the winter of 1637, the bubble had burst, and tulip bulb prices fell sharply.
The tulip frenzy is considered the first recorded speculative bubble (or economic bubble). Economists use the term “tulip frenzy” as an example of this financial behavior, when many people with insufficient knowledge enter the market, causing inflation to explode until it explodes.
If this all sounds very familiar, that is because it has happened recently in the NFT market.
In the past year, the selling price of NFTs skyrocketed, reaching $91.8m. Like the tulip frenzy, these news stories caused many people to enter the market without their knowledge of the desire for quick profits, which led to inflation. As we all know, this did not last long, and with crypto, the NFTmarket collapsed.
The human desire for quick money has existed since ancient times and always will be. Inflation and bubbles are almost natural and, some might say, predictable. But if we look around, tulips like NFTs still exist.
The question is, what happens after the bubble bursts? How can you be sure that the market will continue to grow and become a safe place for people with genuine interests?
Bringing Confidence to NFT Exchange
In order to answer these questions and provide solutions for safe trading, there is a need to understand the parties interested in exchanging NFTs. In the case of NFTs, there is no regulatory body like the SEC (US Securities and Exchange Commission), and people rely on technology and communities.
In the NFT space, you have three parties: the seller, the person or group behind the NFT project, the buyer or buyer of the project, and a platform on which the exchange is taking place. One of the problems this creates is that there is no real recognition for either side, which is a fertile ground for duping people out of their hard earned money.
But even when disregarding genuine fraudsters, there are problems with regard to the stability of the market and the longevity of the people working within it. It comes in two forms, producer and buyer, for the same reason – a desire to make quick money.
From a quick-bucker maker’s point of view, they just need to make some pretty pictures, promote them, sell, take profit and leave, no need to invest further in the project. From a buyer’s point of view, when they decide to be the first to market for a fast profit, all they need to do is buy something cheap, flip for profit, nothing can tie them to a specific project. Is, simply making money by buying a stock exchange investment.
The bottom line of this situation is that there is no added value or utility in those JPEGs. Because it is seen this way from both sides of the barricades, buyers and sellers, there is no emphasis on security. Mining issues, scammers escaping the honest business, or sellers who don’t mind a lack of utility – can all be prevented.
As with any trading market, there will probably be no way to purge people of malicious NFT trading, but as a community, we can and will create tools to deal with them when they come.
Creating an NFT Security Hideaway
There are many solutions in the market right now, one of them is the smart tag of NFT Booster.
Smart Tags allow their community to work together as DAOs and vote on projects that are eligible and approved by them. This ensures that the community is the linchpin deciding on projects rather than companies with financial objectives that may not align with the interest of DAO members or the NFT community.
In addition, to be eligible for smart tags, before a project can be considered for revision by the community, it must commit to a secure and accepted smart contract, which is well-tested, and Have to submit a roadmap that doesn’t compromise on usability and have the whole team follow the doxxing.
To create a DAO, NFT Booster is launching a collection of 5,000 NFTs – Creepy Friends. Creepy dudes holders will create a DAO.
Immediately after mint holders will receive 50% of all revenue back. In addition, 50% of the secondary market profits can be redeemed by the holders on a weekly basis. Any project verified by the DAO and built under Smart Tags will allow for a similar system, giving a certain percentage back to DAO members, allowing the community to grow and sustain.
About NFT Booster
NFT Booster was established with a vision of safety and many future aspirations. The NFT Booster team operates from within their mothership company, Startup Booster, which has several times steered startups from zero to success and helped established companies with various technology issues. Startup Booster works with many companies, large and small, such as Microsoft, Nvidia, monday.com, D-ID, and more.
The NFT Booster team advocates “practice what you preach”, and is fully prepared and available for further questions.
To learn more and join our Discord community: https://www.startupbooster.dev/nft
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