NFT Loot Project and Ecosystem

The frenzy of NFT is in full swing. Dozens of new projects are launched every day, resulting in record volumes for most markets. The project that has received the most attention lately is Loot. Introduction to its ecosystem.

Some claim that Loot is the first of its kind, while others believe that similar projects already exist. Anyway, in the past few days, Loot seems to have grabbed everyone’s attention. I tried diving into the project briefly over the weekend. But I soon realized I could only scratch the surface. The project for me is just an abstraction. But I do have some ideas about how looting can be used in a future financial industry.

Here’s a high-level overview of what’s in it and my thoughts on it.

What is Project Loot?

Loot is a non-fungible (NFT) token that contains only text. No kidding, it’s a list of adventurous items in the text. When you purchase a stolen NFT, you will receive a number of items as text. Below you can see an example of the so-called loot bag:

Example of loot bag / Source: OpenSea

How were these loot bags distributed? inventor, Dom HoffmannIt was distributed free of charge at the end of August. One only had to pay the transaction fee for its instrument. However, there were no other details or information about her. Also not a Web3 app (at least initially). As a little side note for anyone interested in money only: the current minimum price is 13.5 Ether (ETH)!

How can a text-only NFT value be worth as 13.5 ether properties?!? I’m not even trying to explain the price here. However, I would like to give you my opinion after searching several Twitter threads and Discord chats. A Twitter user posted a very simple graphic showing the difference between regular NFTs and Loot Bag NFTs.

Regular or typical NFTs follow a top-down approach. Creators create something, like a profile picture of a cute monkey or cat, a game object, or digital art, like NFT. Then they build the ecosystem around the NFT to add more value to it. This incentivizes collectors, which increases scarcity and ultimately raises the price for people who feel marginalized and want it so badly. Basically, manufacturers sell a “finished product” like a home and then either improve the neighborhood or give you additional furniture.

However, the bottom-up approach to looting is different. The value of the NFT is not associated with any single entity or individual. To stay with the house analogy, the bags of loot in this case are bricks. Users can decide if they want to use it to build a house, bridge or playground.

loot bag for buyers

This means that the value of the loot bag is determined by the builders who purchased the items or minted them and did something with them.

Are you also having trouble realizing exactly what you can build? Here are some examples of projects:

Loot ecosystem overview

Ecosystem looting

Fortunately, the younger generation on our team politely pointed out to me that there were other projects out there as well. For example “More Loot” developed by Dom Hoffmann. There are also different versions, for example cLoot (Chinese Loot) and ELoot (Extended Loot). Please do not ask me what exactly these plagiarized copies are, but the younger generation in our office will be happy to enlighten you.

Now let’s imagine that the “new” financial system is built from the bottom up. Currently, financial markets (products) are built from top to bottom. Financial services companies create a product that aims to generate some value or generate revenue. In my opinion, a bottom-up financial system is already taking shape. Look at the DeFi sector and the way the ecosystem is evolving through the financial building blocks, or financial Lego bricks as it is known. You can buy tokens that have a very specific risk premium (profile) and mix and match them in your investment plan. Another potential use case is how a financial services provider (whether centralized or decentralized) can create a product (loot bags) with different risk premiums and the investor chooses whether he wants to include the entire bag or part of the risk premium (the attribute) that he just wants to buy what he likes .

I’m sure I forgot to mention several legal and compliance-related aspects in my rough presentation. And I couldn’t even think of the technical details. I may not have chosen the best analogy. But it helps me get a better picture of what all this leads to. One thing is very clear – things are moving forward in full force. Some sectors, such as the video game sector, are moving faster and more advanced. This is, of course, perfectly understandable, as highly regulated industries like finance face much greater hurdles before they are ready to do business in this new way – and with such a new concept.

Copyright © 2021 | Crypto Broker AG | All rights reserved.

This publication and its contents, including all names, logos, designs and trademarks as well as all intellectual property rights and other rights associated with them are the property of Crypto Broker AG or third parties. It may not be reproduced or reused without their prior consent.

Not giving an opinion
All information in this publication is provided for general information purposes only. The information in this publication does not constitute investment advice and is not intended to be. This publication does not constitute, and is not intended to be, an offer, recommendation or solicitation of any investment in any financial instrument, including cryptocurrencies and the like. This post is not intended for advertising purposes, but is for general information only. The content in the publication represents the personal opinion of the respective author and is not intended or appropriate as a basis for making a decision. All descriptions, examples, and calculations in this post are for illustrative purposes only. Notwithstanding the usual care in preparing this publication to ensure that the information was correct at the time of publication and not misleading, Crypto Broker AG makes no warranty or guarantee, express or implied, with respect to the information contained in it, that it may be marketable, fitness for a particular purpose or from its accuracy, correctness, quality, completeness or timeliness. Crypto Broker AG excludes any liability or responsibility for the use of the information contained in this publication, including by third parties, in connection with trading or other activities and also for any errors or incompleteness contained in this publication.

Risk Notice
Investments and investments, especially in cryptocurrencies, are always associated with risks. The total loss of the invested capital cannot be excluded. Cryptocurrencies are very volatile and therefore can be subject to extreme price fluctuations in a short period of time. The information in this publication is used exclusively and at the user’s own risk. In any case, before making an investment decision, the user should be aware of the accompanying risks and, if necessary, seek appropriate advice.

Leave a Comment