The Coinllectibles team would like to wish you a very Happy, Prosperous and Healthy 2022. 2021 was our first year of operations and we made great progress across a number of areas in a rapidly evolving and exciting market environment. As we ramp up for a New Year, we would like to take the opportunity to thank you for your interest in Coinllectibles and to provide some reflections on an eventful year.
The NFT market grew exponentially and is here to stay
The NFT market’s estimated total NFT trading volume in 2021 reached US$20bn, some change from the $100mm recorded in all of 2020. The UK’s Collins dictionary revealed NFT to be its word abbreviation of the year. We will see what 2022 brings in challenges as well as opportunities, but there is no question that the NFT market is being increasingly embraced and is here to stay.
Fusion NFT as the “gold standard”
Most of the NFT art volume is focused on digital assets. Digital art is a tremendously interesting area but at Coinllectibles in 2021, we focused our efforts on developing the best NFT tied to the physical asset addressing authentication and ownership. The Coinllectibles Fusion NFT bridges the physical art forms with the digital median, with one Fusion NFT representing the certificate of ownership to one physical art piece. The Fusion NFT holds legal, valuation and identification information that enables the owner to have security as well as enjoyment of ownership. Our technology team came up with ways to integrate large amounts of information and proprietary technology into the Fusion NFT and that allows us to work with most blockchains. The Coinllectibles Fusion NFT- we call it the “gold standard”.
We finished the year strongly
We were pleased that our first launches of ceramic collections were well received. It has been a privilege to work with a growing number of artists and art forms and in the last few weeks of the year we minted Fusion NFTs with three fantastic artists. Since September we have minted approximately 120 NFTs and we have seen nearly 130 transactions of our NFTS. In total we have seen a little over US$60 million of transaction value turnover in the primary and secondary markets on our Fusion NFTs with most of that occurring in November and December. Some of the Fusion NFT pieces have transacted several times seeing over a 300% appreciation in valuation. We would like to see a mix of collectors holding pieces for longer term enjoyment and capital appreciation as well as buyers looking for more liquidity. Coinllectibles is a global firm deliberately working with artists from all over the world, using our technology and relationships to access new geographies. We became a listed company on the OTC market in the US in the second half of the year.
The Metaverse opportunity to a seamless ecosystem around collectible accessibility
2021 saw a lot of commentary on the new Metaverse, most of which is conceptual at this stage but we expect to rapidly become firmer in shape. We think about the Metaverse as Multiverse – multi element with opportunity in areas that support our mission statement to make art and collectibles more accessible to more people. We look to reach a growing customer community in many innovative as well as traditional ways enhanced by technology. We opened a gallery in Hong Kong in a great location to view many special
physical pieces. In late December, we launched our own MetaMall e-commerce site enabling people to buy and sell Fusion NFTs increasing access and efficiencies for collectors in addition to working with third party market places. We have experimented with different ways to engage with collectors such as accepting different tokens as forms of payment in launches. We were also pleased to partner as a utility provider with the Colligo token with an objective to grow community engagement around artists and collectors. We also made 2 acquisitions in the areas of film production and communication technology which will help accelerate our engagement with collectors and partners in fun and practical ways. The Metaverse is an amazing development and we are excited to work with others to help shape elements of it.
Responsible innovation to make the most of our collective opportunity
As in any market that has grown very quickly there are some concerns of value bubbles being created in parts of the market. The crypto market is also developing rapidly. Where market innovation is unregulated there are areas that feel “grey” and we have looked to avoid those areas of potential concern. But that is not straight forward to do as the Metaverse opportunity develops and increasing amount of innovation becomes part of how we interact and transact. We feel a responsibility to self-regulate and are welcoming opportunities to work with other companies, law firms and regulators to progress the regulatory environment for current and future market activities.
Trust placed in us and wishing all best wishes for 2022
In closing on behalf of all of us, we thank you for the trust placed in us to date and we are very excited about what this New Year will bring. Our growing team working out of multiple locations has worked enormously hard and it is pleasing to see some positive outcomes in the latter part of 2021. We are fortunate to have Dr Herbert Lee as our founder shareholder who has brought his passion for both art and technology to Coinllectibles. This has certainly helped accelerate our progress and we look forward to building on that in 2022. We know that we and the market are moving quickly and we won’t get it right all the time, but we will learn and get better. We are operating in a new normal characterised by change and are committed to being the best partner we can be at the forefront of responsible innovation in this exciting and evolving market of collectible ownership.
We wish you a very Happy, Prosperous and Healthy 2022