Teng Yan

Teng Yan


Delphi Digital


As the head of NFT research, Teng Yan focuses his attention on NFTs and the metaverse, covering sectors such as NFT finance, digital collectibles, art, sports, fashion, entertainment among others

I really enjoyed reading this article. To be honest, I have been hesitant about getting my iris scanned and getting a World ID (privacy concerns) but this helped allay some fears. The sybil problem on crypto is extremely value-destructive and needs to be solved.

Nice post, enjoyed reading this. I'm watching for organic NFT communities to form on Sui. Would be one of the things in my checklist for Sui to follow Solana's trajectory.

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"the Token Metadata program is upgradeable and controlled by a multisig wallet managed by Metaplex"

Yes, it's something that many are not aware of. And also highlights some of the criticisms around Solana (more centralization overall, less open source apps, etc)

This is generally not a concern on Ethereum since ERC-20 is not governed by any single organization or linked to an upgradable smart contract. It's more of a set of expected functions in a smart contract.

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"The current valuation gap between Solana and Ethereum-based collections could shrink considerably if Solana maintains its growth momentum."

Hey Matt. It would depend on what type of NFT collection. The liquidity for NFTs on Ethereum is still much larger than Solana today. So if it's a store-of-value type (e.g. art), Ethereum is still a good choice.

But momentum and users are shifting towards Solana. A lot can change in a year's time

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"Three NFT collections on Solana appear to represent the ecosystem broadly"

Probably a similar dynamic to memecoins: depends on how they are able to build a community and capture attention.

I think most memes die out over time and get replaced by others, only a few stand the test of time

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"“Price Lock"

It's an interesting feature for sure, first such one that I've seen on an NFT marketplace. Allow people to earn yield on their NFTs by selling call/put options

On the NFT side: the experimentation with new NFT standards is very interesting. ERC-6551 (tokenbound accounts) especially, I believe most NFT projects in the future will be using it because it unlocks a lot of new functionality: NFTs can now interact with other dApps the same way we do.

Hey Rumi, great questions. here are my thoughts:

Q1 On Blur/Tensor: The main reason is that they've been able to ship a great product, and attract the deepest liquidity using their incentive programs. Many people continue to use Blur/Tensor even if there are no rewards, myself included. If OS or ME drops a token, there will be fierce competition for sure, since most traders will flock to where they can potentially earn the most.

Q2: Blur is probably a reasonable proxy for the NFT market (and TNSR when it launches for Solana NFT market). I wrote about this in an Alpha Feed post last week.

Q3: Most interesting to me are consumer use cases. I personally find Blackbird (restaurant loyalty program) very cool, and thinking about how that could scale up.

Q4: IMO Soulbound NFTs' main use case will be in a representation of user's identity and reputation.

Future Primitive is the one company I see pushing out new interesting standards for NFT regularly, I'd keep an eye on them https://futureprimitive.xyz/

ERC-6551 is probably the most important one today, in terms of adoption and implications.

Good luck on the trade! Watch for Jan-Feb 2024 when GuildFi will likely be starting all of its rebranding activities, that will be a positive catalyst IMO.

Quoting my gaming colleague Joe's reply in the Delphi members telegram chat (where someone asked a similar question about YGG):

"I don't know if I'd say I prefer one over the other, both still have a lot to prove. The main reasons for excitement with GF is that they have announced a couple times now about their rebranding in Q1. Aside from just a name change, we can also expect them to launch their own network (I'm guessing it will be like Beam), a questing platform, publishing tools, and a couple other things."

Thanks Schnubb! I agree, autonomous AI agents are going to be a new trend and gaming is one area where they could take off first. Parallel has captured people's mindshare as the Web3 gaming "play" for the coming cycle, which explains why its price has been doing very well lately.

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"Compressed NFTs."

The answer will be very nuanced: depends on how much value capture the infrastructure provider is able to obtain.

I personally think Tensor will do very well, as the de facto place to trade Solana NFTs now. Magic Eden has fallen way behind, lost in the noise.

You're right Anthony. That makes the relative difference in valuation between MC/Beam vs GuildFi even more stark. I'll edit the post to reflect this.

I'd say that Bittensor and Render focus on quite different aspects of the AI market.

Render: More infrastructure level by providing GPU compute for AI model training
Bittensor: AI inference, selecting and combining AI models to provide the best outputs.

So they aren't direct competitors. In fact, they can be complementary.

Yes rags, that's a great soft indicator. I think NFT markets are slowly cooking and strong interest could return again next year.

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I believe the infrastructure necessary to build good apps is available today.

We are just lacking good consumer experiences right now. If brands can nail this, their customers will come.

Friend tech, Reddit NFTs are just a few examples to show how most of the crypto UX can be abstracted away from the customer until necessary.

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"very low marginal costs (and nearly negligible if you use compressed NFTs on Solana), this can be done using free or cheap mints as a gateway into their brand community"

Cost profiles will be very contextual to the business. Every business will need to experiment and find which marketing channels works best for their target audience.

CAC will be a great metric if it can be measured accurately. Web3-to-Web2 attribution is still challenging today.

Teng Yan has not authored any research reports yet.