DOSI’s NFT Popularization Strategy — 1) Multi-Currency NFT trading
Hello, this is the DOSI Team.
A series of recent events in the blockchain market has raised many concerns regarding the scalability and continuity of Web3 services. In this posting, we would like to introduce the issues in priority that Web3 services must solve to overcome the current situation as well as DOSI’s strategies.
The first items are the problem arising from the environment in which NFTs are priced and traded with a single Mainnet* coin along with its solution of DOSI’s ‘Multi-currency NFT Trading Strategy.’
*Mainnet: independent blockchain platform/protocol/network
Market Status and Problems: NFT Remaining as a Derivative
As NFTs grew last year, an increasing number of project teams wanted to build various services such as blockchain-based games, IPs, and memberships. The industry welcomed every time there was a press release about famous brands entering Web3. The market was on fire as if a new user-owned metaverse was about to become a reality.
However, as of now, many projects in the market are undergoing great difficulties. Though there are successful cases, after the initial hype* stage, numerous users have been leaving the service rapidly, giving the service bad impact.
*Hype: a technical stage where users have highest expectations
In particular, although NFTs have value as services, in-game goods, memberships, and IPs, the price declines more sharply when the price of virtual assets decreases or when there is a problem with the underlying Mainnet coin. According to Nonfungible.com, while the price of ETH has dropped 57% since 2022 April, the standard price of ETH for the Ethereum-based NFTs fell 70% — an 87% decrease based on USD, and 50% of trading users have withdrawn.
Even NFT projects with brand benefits and merchandise profits provided by NFTs could not avoid NFT price declines during the same period. This means that the current blockchain-based game goods, memberships, and IPs remain as derivative products with the Mainnet coin as the underlying asset.
This can be an opportunity for savvy investors to make bigger profits in a bull market, but it is a problem that needs to be addressed to move towards a sustainable NFT service and mass market of 3 billion gamers and 5 billion internet users.
DOSI’s Strategy: Multi-Currency NFT trading
The main cause of the problem lies in the fact that in the initial NFT market, NFTs being traded with a single Mainnet coin is considered the norm. Until the values of the coins in all platforms stabilize in the future or until stable coins* and inter-chains** become pervasive, this structure will be a major obstacle to the generalization of NFTs and Web3.
*Stable Coin: US dollar(USD) pegged cryptocurrency with stable value
**Inter-chain: a technology connecting two structurally different blockchain networks
In order for game-, membership-, and IP-based NFTs to create intrinsic value and succeed in the fan and mass markets as well as minority investors, an environment in which NFTs can be traded in USD and more diverse currencies are essential.
DOSI’s ‘Multi-currency NFT trading’ is a solution for this. NFTs are displayed in US dollars and support the environment in which users can trade in various currencies of their choice. This provides a basis for NFTs to be valued and traded as membership, in-game goods, IP, and services, rather than a single-coin derivative.
To implement this, DOSI Wallet is designed to function as an integrated wallet that connects various Fiat* currencies and Cryptocurrencies. NFTs are issued based on the Cosmos-based LINE blockchain specialized for Inter-chains, and allow users to trade NFTs presented in dollars by connecting their preferred payment method.
*Fiat Money: legal tender(US dollar etc.)
Even users with no understanding of NFTs or virtual assets can easily create a DOSI Wallet account through social login and make payments through Fiat channels such as NAVER Pay. Users who already have other virtual assets can trade by linking the corresponding virtual asset wallet. Initially, NAVER Pay and Credit Card are linked as Fiat channels, and Metamask (ETH) is linked to DOSI Walle as for virtual assets. Starting from LN Wallet, further additions are to be added step by step.
This structure provides an overwhelmingly advantageous experience for users at every stage of entering Web3. At the stage of acquiring an NFT for the first time, users can receive an NFT airdrop and enter the service immediately after social login without storing the seed phrase*.
*Seed phrase: a combination of arbitrary words verifying ownership of an account such as blockchain wallet
In the first stage of purchasing NFTs, users can make a payment with credit cards or through simple payment to prevent withdrawal. Even users familiar with virtual assets can make payments by linking the wallets they’ve used. Even in the stage of transactions between users, users can select the transaction currency they want for NFTs with US dollar displays. This allows us to continuously provide NFTs and service value independent from a single Mainnet coin.
In Conclusion,
The market situation is difficult, but the DOSI Team sees the current situation as an opportunity for Web3 to move from a short-term investment market to a popular service market. This is because the market allows us to think about sustainable service value, not the investment view of the early virtual asset market. Also, there is a lot of empathy and support from many global brands and projects for DOSI’s strategy.
DOSI is always open to proposals for global partnerships. Please contact us for projects to create new and sustainable value in the global market with DOSI.
Thank you.
DOSI Team
