Analysis of OpenSea's Acquisition of NFT Aggregator GEM
Colin Wu .
2022-04-26
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OpenSea's acquisition of Gem is a very centralized approach. When a competitor emerges, even though it is not yet a threat, the monopoly company will quickly acquire/merge it through its strong capital power to nip the threat in the bud. Chinese gamers should be very familiar with OpenSea's actions, which are comparable to Tencent's.
I have to praise Gem.xyz, the shopping cart, rarity, flashbot, whales purchase notification and other functions are very good, not only can save the fee, but also can always pay attention to the market dynamics, and in critical times can also grab rare NFT.
Many of these features are what the community has always wanted OpenSea to add, and then the evil dragon always ignore the voice of the community, the emergence of Gem to fill the gap in functionality. So we also laughingly call Gem is OpenSea's dragon slayer.
In fact, as an aggregator, Gem's NFT data is excellent. Since its launch in mid-December last year, Gem has accumulated over 246,000 ETH(~ $400million) of trading volume, twice as much as Genie, which launched much earlier. The main reason that Gem has been able to bend the rules in such a short time is that Gem aggregates more mainstream NFT markets than Genie, OpenSea, LooksRare, X2Y2, etc., while Genie is mainly OpenSea and other smaller markets, and its long period of inactivity made it lose market share, until early April this year when it integrated LooksRare. In addition, Gem is also ahead of Genie by aggregating the analytical data dial of Dune Analytics and its own anti-pinch bots. Gem has achieved a downscaling of Genie. Despite the excellent data, NFT Aggregator does not charge fees such as platform fees, and the profit model still being explored planted the seeds for Gem to be acquired.