3.2 Challenges

NFT's unique ownership "voucher" attribute is naturally suitable for use in the field of art with unique value and becomes a value carrier to transfer large amounts of funds. NFT's rapid development also exposes shortcomings, the core issue is that the valuation and liquidity of NFT assets have been questioned by the market. As well as the value consensus remains controversial. Because of NFT's unique nature and the absence of uniform pricing standards, it is difficult to give uniform value to unique assets. In addition, because of the public's aesthetic awareness and the differentiation of artistic appreciation, the art collection market is a niche market. making it difficult to form a value consensus at a larger scope. With the circulation problem caused by low consensus, there is no effective valuation mechanism. Secondly, NFT art is less liquid, and it's often hard to sell a NFT without a tradable history. For example, putting an NFT on OpenSea, without a fan base and publicity, it can take days for investors to buy a regular NFT artwork to sell again, while higher-priced NFT works can take weeks or more to sell. Finally, the current pricing mechanism of NFT art is that of an auction methodology, and consequently results in high pricing, from hundreds of thousands to tens of millions of dollars.