40 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. 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. 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. Figure35: NFT creation Figure36: NFT markets globally and in China Source: Deloitte analysis Source: Deloitte analysis PGC UGC Creators Professional teams generate content users generate content platform releases NFT with its own artist team or external artists users can create NFT works and upload, currently support audio, video, pictures, etc. Model of creation Cases Global: Nifty China: Ali Auction, AntChain, Tencent MagicCore, JD lingxi Global: OpenSea, SuperRare, Rarible, etc. Profit model- platform Sales sharing: the platform cooperates with well-known IP, and the sales are divided according to the agreed proportion service fee: users pay Gas fees to upload their work to the chain through the platform, and the platform can earn Gas fees as a middleman Gas spread: the platform charges users a fee when they sell NFT, about 5%~15% Profit model- creators sales sharing, contract fee sales revenue-chain fee-service fee Global Market China’s Market Blockchai focus on public chain focus on private chain Currency Ethereum, RARI and other cryptocurrencies legal currencies, e.g. RMB, digital RMB Restrictions Lax regulation And flexible trading some can be donated, not open for resale Restrictions more relaxed rise and fall restricted rise and fall Type of Artwork wealthy less Threshold of Creators including high and low thresholds focus on high thresholds China vs. global platforms