RWA Insight: Web3 + Art = Meme? ULTILAND Explores Meme-like RWA in Digital Art Assets
HONG KONG, Sept. 05, 2024 (GLOBE NEWSWIRE) —
From the first stirrings of life beneath the waves,
the greatest art quietly paves, in universe.
When starry nights meet Van Gogh’s humble gaze,
and Meme trend with RWA power ablaze.
In the Web3 era, “Art” within “Artificial” stays.
Why the Age-Old Concept of RWA Continues to Be a Timeless Narrative
Real-World Asset (RWA) tokenization is a significant application of Web3 technology in the realm of tangible assets and even in the art market. Through RWA, physical artworks can be converted into digital tokens on the blockchain, enabling their trade and investment in digital markets. This method not only enhances the liquidity of artworks but also increases their financial value. Currently, the total market value of RWAs has reached $8 billion, with expectations to grow to $16 billion by 2025.
RWAs are backed or supported by real-world assets, making them relatively stable compared to the volatile nature of virtual assets. This stability is crucial for the diversified allocation of virtual assets; a balanced virtual asset portfolio requires a reasonable mix of high-risk, medium-risk, and low-risk or risk-free assets. RWA will drive diversified portfolio investment or allocation in crypto investments, moving beyond simple speculation and the extreme fluctuations of cryptocurrency markets.
Investors have varying levels of risk aversion and risk tolerance, and they also have different expectations for returns. This diversity creates opportunities for interest rate swaps or arbitrage, whether in a bull or bear market, which in turn generates liquidity. Therefore, one of the keys to RWA’s success lies in achieving greater liquidity.
As the public continues to discuss RWAs, they gradually recognize their value, such as global cross-market trading, reduced transaction costs, and improved transaction efficiency. RWAs also pave the way for tokenizing emerging assets like AI computing power, data, and artworks, leading to a consensus on their valuation expectations, with a more inclusive and transparent pricing model and security. However, concerns also arise regarding RWAs, including regulatory and compliance issues, insufficient liquidity, and technological and operational risks.
The Art Market is Undergoing a Digital and Innovative Transformation
With the rapid development of the blockchain market, the concept of Web3 is gradually being integrated into the art market, bringing unprecedented opportunities. Web3 technology, through decentralized, transparent, and secure trading methods, makes the digitization, tokenization, and online trading of artworks possible. This not only enhances the liquidity and market transparency of artworks but also provides new income streams for artists and collectors.
According to the “Art Basel and UBS Global Art Market Report,” the art market has shown strong performance during the post-pandemic recovery, with the total global art market value expected to reach $75 billion by 2025. Meanwhile, Web3 applications like NFTs and RWAs are rapidly gaining popularity, further driving the prosperity of the art market.
As more artists, collectors, and investors enter this field, the integration of Web3 with the art market will undoubtedly continue to lead future trends of innovation. RWAs are reshaping the art market by offering broader investment opportunities and higher market transparency. This trend not only fosters the flourishing development of the art market but also creates more commercial opportunities and financial value for artists and collectors.
The Collision of Web3 Assets and the Art Market
It is well known that Web3 has three directions: meme assets (Meme), application assets (BTC, ETH), and real-world assets (RWA). Some question whether RWA is truly a native digital token, prompting a thought: could Bitcoin be considered an RWA tokenized from energy?
With the introduction of BTC and ETH ETFs, Web3 is gradually moving away from the semi-closed loop of internal financing and external buy-ins. The influx of real-world assets into Web3 presents a significant opportunity for the upcoming cycles. RWA represents the physical business within the crypto industry and is an inevitable path for the blockchain industry.
As the global economy declines, the lipstick effect has impacted the art market post-pandemic, and NFTs have further ingrained the concept of digitizing artworks in people’s minds. The traditional art market relies on conventional value experiences and trading methods, whereas AI and blockchain technology have established a new paradigm in the digital art market. This breakthrough has created new avenues for emerging art investments and consumption choices, broadening the creative and monetization paths for artists.
When considering RWAs and the art market, asset tokenization is no longer the most challenging aspect of RWA development, as the necessary infrastructure has long been established. The disconnect between continuous off-chain verification and on-chain value representation is the primary reason for slow growth and the depreciation of on-chain assets.
Most RWA products are concentrated in expensive assets, limited to easily quantifiable financial products, and involve complex KYC procedures and high knowledge barriers, making them difficult for consumers to engage with, unlike memes, which are simple to participate in. The scale and thresholds make it inaccessible to the average consumer.
When thinking about the value presentation of art and artworks in the Web3 context, we often instinctively associate it with NFTs. However, in 2024, we are no longer FOMO-driven participants in the NFT bubble and should clearly understand that:
Even NFTs cannot effectively ensure the original author’s copyright and intellectual property rights, and the created works are merely “digital versions” without substantial financial or application value. Additionally, the related industry chain is still incomplete. Using NFTs as a carrier of the financial attributes of artworks is inappropriate, as issues of liquidity and ownership persist, with no artistic value to speak of. High-priced NFTs are often native financial products on the chain, not artworks. Meme’s conveyed artistic nature and financial expression, in contrast, have a more significant impact.
Meme-like RWA Makes RWA More Than Web2.5
RWA, as a security token of real-world assets, involves more than merely tokenizing physical assets and issuing tokens. It should be approached on three levels: starting from the underlying asset, then considering the type of expected returns, and finally, the tokenization process.
Based on this, Ultiland has proposed the concept of Meme-like RWA to create more attractive and innovative financial products.
Combining Asset Stability with Memes
Asset stability is the cornerstone of RWA, and Meme-like RWA enhances the perception of this stability by integrating assets with popular cultural symbols. The universal appeal of memes helps build a loyal community that not only focuses on the current value of the asset but also holds confidence in its future stability. Through meme dissemination, the stability narrative of RWA spreads quickly, attracting more investors and holders.
Secondary Derivation of RWA Asset Value
The Meme-like RWA model provides new avenues for the secondary derivation of RWA asset value. By creatively combining RWA assets with meme culture, new financial derivatives can be developed, such as tokens or NFTs based on specific meme themes. These derivatives not only offer new revenue opportunities for investors but also increase the diversity and fun of RWA assets, thereby attracting a broader audience.
Iterative Design of Yield Farming
The Meme-like RWA model iteratively designs yield farming by combining mining models with meme culture, creating a fun and profitable investment approach. Community members can earn additional token rewards by participating in meme challenges, creating related content, or completing specific tasks. This method not only enhances the appeal of RWA assets but also increases community activity and engagement.
Derivation of Interest-bearing Assets
The Meme-like RWA model allows the underlying assets of RWA to derive interest-bearing assets. These assets, through meme forms, combine current returns with future expectations, creating new investment value. For example, a token related to a specific meme can be designed, with its value depending not only on the performance of the underlying RWA asset but also on the community’s enthusiasm and engagement with meme culture.
Dual Design of Real-World Assets
In the Meme-like RWA model, real-world assets are given a dual design of current returns and future expectations. This design considers not only the immediate returns of the asset but also its potential value growth over time as community participation increases. Through the dissemination of meme culture and community co-creation, RWA assets can achieve sustained growth and expansion in value.
Through the above methodology, the Meme-like RWA model injects new vitality into traditional RWA by combining the power of meme culture and community, creating more attractive, interactive, and innovative financial products. This model not only enhances the market performance of RWAs but also drives innovation and development across the blockchain financial sector.
The RWA space is filled with opportunities but also faces many challenges. Regulation and compliance, insufficient liquidity, technological and operational risks, and market acceptance are the current main pain points. However, asset diversification, stable cash flow and returns, market expansion, and innovative development prospects make RWA a highly watched area in the crypto market. The Meme-like RWA model significantly improves the liquidity and market acceptance of RWA assets by leveraging the spread of meme culture, addressing the aforementioned pain points, and bringing new opportunities for asset diversification, stable cash flow and returns, market expansion, and innovation. As technology continues to advance and the market matures, Meme-like RWA is expected to play a more significant role in the future, driving deeper integration between blockchain and traditional financial markets.
Ultiland’s Innovations and Solutions
At Ultiland, art is not just a source of creative inspiration but also a form of asset representation. Through the dissemination of meme culture, the value of artworks and real-world assets can be tested in the market, helping quality assets gain early traction and liquidity. By combining meme as a form of performance art with RWA, Ultiland brings more creative and business opportunities to both artworks and investors.
Ultiland is an on-chain asset issuance and lending platform that starts with artworks and extends to physical and financial assets. By integrating artworks, meme culture, and real-world assets (RWA), Ultiland introduces the concept of Meme-like RWA, offering a range of unique protocols and services that facilitate the trading and circulation of assets within the blockchain network.
Ultiland LaunchPad offers decentralized token issuance capabilities, allowing anyone to participate in asset issuance and investment. LaunchPad supports liquidity protection and incentive mechanisms to enhance market confidence and activity while safeguarding user interests. $BOND is the general term for tokens issued on Ultiland LaunchPad, used to tokenize various real-world assets, such as artworks, real estate, antiques, as well as meme, artistic value, and personal influence. $BOND is issued and traded through the Bonding Curve model, aiming to increase asset liquidity and market value.
Bonding Curve LaunchPad
Price Discovery: The Bonding Curve model achieves dynamic pricing through mathematical formulas, ensuring that prices change with market demand, establishing a fair market price discovery mechanism and laying a solid foundation for the post-launch development of $BOND.
Liquidity Protection: Tokens can be traded during the token launch phase, and a portion of the funds from the sale of artworks and other real-world assets flows into DEX LP, ensuring liquidity supply after token issuance and enhancing market confidence and activity.
Incentive Mechanisms: $BOND’s design includes reward mechanisms that encourage investors to participate in trading mining and holders to engage in staking mining, producing $ARTX, thereby stabilizing the market and preventing extreme price volatility driven by meme-like behavior.
Decentralized Issuance: Offers a simple and customizable decentralized token issuance capability, allowing anyone to participate in asset issuance and investment, lowering the entry barrier and expanding the potential investor base.
Special Asset Entity
Transparency and Fairness: SAE provides transparent and fair asset evaluation services, ensuring the true value of all on-chain assets, preventing manipulation and information asymmetry.
Risk Reduction: The custodial segregation mechanism ensures that assets are separated from personal accounts, reducing the risk of asset misappropriation or loss, thereby increasing investor confidence.
Enhanced Credibility: Assets evaluated and held by SAE will have all related information (such as ownership, value, legal documents, etc.) converted into data on the blockchain. This data is typically stored in smart contracts, ensuring information transparency and immutability.
Legal Compliance: Through professional evaluation and custody, SAE ensures compliance with relevant laws and regulations, bridging the gap for legal asset issuance and trading.
RWA Oracle: A blockchain tool that verifies and provides real-world asset data, ensuring the authenticity and accuracy of on-chain asset information; combined with the aforementioned foundational capabilities of SAE to form the Special Asset Entity Protocol.
Through the combination of the Meme-launch model, SAE decentralized asset evaluation system, and RWA Oracle, Ultiland ensures the legality and value of assets from the foundational asset level, builds investor confidence in RWAs, and provides a clear earnings model at the expected return level, ensuring investors can receive dividends based on the cash flow generated by the asset. At the final level of tokenization, tokens are not merely digital representations of assets but active participants with practical functions. Token holders can participate in governance, earn returns, and even play a more significant role in the community, ensuring token value stability and growth.
The practice of the Meme-like RWA concept in Ultiland is to allow the market to test the value of artworks and other real-world assets, helping valuable assets gain early traction and liquidity, and eventually reach DEX and CEX with a promising price.
Ultiland offers an on-chain lending protocol for real-world assets, allowing users to pledge real-world assets evaluated by SAE to obtain digital currency loans. The entire process utilizes smart contracts to ensure transparency, fairness, and security in lending. Borrowers can also establish an on-chain credit score, obtaining higher limits and lower interest rates on loans.
The Necessity of Ultiland in Web3
Diversified Assets and Scenarios
Ultiland not only supports the NFTization of artworks but also covers a wide range of real-world assets. It provides a complete service chain for token issuance, decentralized auctions, asset evaluation, and on-chain lending, forming a comprehensive RWA and digital asset management platform.
Innovative Integration and Ecosystem Cycle
By integrating the concepts of RWA and MEME, Ultiland breaks away from the traditional tokenization model of NFTs. The advanced token mechanism provides users with greater engagement and stability, thereby promoting ecosystem growth and circulation, gaining an economic advantage in the competition.
Legal Compliance and Security
Through SAE’s asset evaluation and custody, Ultiland ensures the authenticity and security of on-chain assets. The custodial segregation mechanism separates assets from personal accounts, with real-time supervision and evaluation, effectively reducing systemic risks.
Token-Driven Incentives
Ultiland offers rich incentive mechanisms through its dual-token system (ARTX and ARTY) and Bonding Curve model. Combined with its inherent artistic qualities, Ultiland attracts users to participate in staking, trading, and artwork creation.
Ultiland’s innovation lies in its unique asset issuance model and real-world asset collateral lending protocol. The platform integrates the value of art, the pathway of RWA, and the carrier of meme, linking the real and crypto worlds to achieve commercial success. By ensuring the authenticity and security of on-chain assets through SAE, and adopting custodial segregation mechanisms to separate assets from personal accounts, Ultiland reduces systemic risks.
Ultiland is not only dedicated to addressing pain points in the real-world asset and digital art market but also offers users a variety of new gameplay and investment models, driving the artistic creation and commercialization of the Web3 era. Through an innovative economic model and transparent governance mechanism, the platform creates a new ecosystem for asset issuance and management, helping artists and investors maximize value in the crypto world.
As blockchain technology and the Web3 ecosystem continue to evolve, the emergence of Ultiland brings essential innovation and change to the market. It enriches the application scenarios of real-world assets and artworks, providing users with more investment opportunities and creative platforms. In this journey from Every Land to Ultiland, Ultiland will become a crucial bridge connecting the real and digital worlds, leading the trend of asset digitization in the future.
The artistic accomplishments of crypto may seem overshadowed by financial energies, but we can still find softness within. Be it nihilism or the wealth effect, we do not aim to revolutionize anyone, but we do look forward to a journey of real-world assets in the crypto world, taking you from the reality of Every Land, or the deeply pessimistic NoLand, to Ultiland.
CONTACT: Loven Co Founder Loven loven@ultimediahk.hk
