The Metaverse Overview : Vision, Technology, and Tactics | Industry The three roles in circulation Upstream NFT developers include individuals and organizations using the UGC of PGC model. Individual creators represent 90% of NFT developers worldwide, but in China, professional teams dominate NFT creation. Figure35: NFT creation NFT dealers/Bidders, Users Portfolio: Take Everyday: The first 5000 Days the Bidding of as an Example PGC UGC Creators Professional teams generate content users generate content 6% 3% 6% Model of platform releases NFT with its own artist team or external artists users can create NFT works and creation upload, currently support audio, video, pictures, etc. 33% 33% Global: Nifty 58% 55% Cases China: Ali Auction, AntChain, Tencent Global: OpenSea, SuperRare, Rarible, etc. MagicCore, JD lingxi service fee: users pay Gas fees to upload their work to the chain Profit Sales sharing: the platform cooperates with well-known IP, and the through the platform, and the platform can earn Gas fees as a model- sales are divided according to the agreed proportion middleman platform Gas spread: the platform charges users a fee when they sell NFT, about 5%~15% Millennials (1981-1996) X age (1965-1980) Profit America Europe Asia model- sales sharing, contract fee sales revenue-chain fee-service fee Z age (1997-2012) baby boomers (1946-1964) creators Source: Deloitte analysis Globally, the midstream NFT trading platforms include OpenSea, SuperRare, Nifty Gateway, and Rarible. In China they include Alibaba Auction, Ant Chain, Tencent Huanhe, and NFT China. Internet and technology companies dominate China's NFT market because NFTs cannot be traded freely there. There are major differences in the technology, types of artworks, and oversight on Chinese and global platforms. Figure36: NFT markets globally and in China Blockchai Type of Threshold Currency Restrictions Restrictions Artwork of Creators C pl hina Global focus on public including high Ethereum, RARI Lax regulation more a wealthy and low and other And flexible relaxed rise t v Market f s chain or . thresholds cryptocurrencies trading and fall m g s lo b a legal currencies, some can be l China’s focus on less focus on high e.g. RMB, donated, not restricted Market private chain thresholds digital RMB open for resale rise and fall Source: Deloitte analysis Most downstream buyers and bidders are young. According to the auction data from Everyday: The First 5,000 Days, millennials (1981-1996) and Gen X (1965-1980) bought more than 90% of the NFTs, showing the current NFT market belongs to young people with buying power, at least for now. 40