NFTs: new technology, not just an unstable market

Right now people are finding out that the vast, overwhelming majority, nearly all, of NFTs they’ve been buying over the last year or so are basically worthless. As such, you might think this is a terrible time to make and promote NFTs. I’d actually agree with you if you plan on making a valueless mass of images that no one is going to care about once the news cycle changes no matter how many new characters you’ve churned out. The time of portrait-style characters making money is about dried up because anyone can take the NFT image and do with it as they please.

It’s an unregulated market, so there’s nothing stopping you or anyone else from going to Bored Apes current haven (as of the time I’m writing this, I’ve begun to wonder if there’s going to be a shift in marketplace preferences), downloading your favorite image, then using it on all your social media. I heard on Twitter you can have a new profile picture shape or something if you prove you’re the real owner. Massive flex.

NFTs are a new technology, and to be honest I’m glad so many people who make real quality art made out so well during its hypergrowth. But now that the bottom has dropped out everyone is once again claiming (for the second time) that NFTs are a fad and completely dead. “History doesn’t repeat, but it does sometimes rhyme.” – Mark Twain

Another thing people keep talking about is oversaturation, but it’s not a regular oversaturation of the market it’s an oversaturation of a market where 99.99% of NFTs, that would be 9,999 out of every 10,000 NFTs, will be worth far less than their purchased price within five years, the vast majority of those worth nothing since no one will buy them.

So the market is dead, right? No, because this is technology we’re talking about, not just a market, and it is new and has many possibilities. We are barely getting into the possibilities of NFTs involving games. Our platform is free, and we’ve made a commitment to never in any way charge someone money for our product, but that’s us.

We see a very viable model where a video game has a very robust character appearance generator, then you can buy the appearance you bought on your server and no one else can have those exact features. It allows potential duplicates to exist until someone buy’s the NFT and becomes the official or real one, maybe even getting an in-game usable title. This also gives those people with a lot of talent at creating those characters the chance to create amazing characters and then purchase and sell those models. This would also force a larger diversity among the in-game player base, leading to more interesting visuals and gameplay.

My long-winded point here is that any NFT that’s going to maintain value has to have one of two things, preferably both.

First, you need to have exclusivity. I’m going to go so far as to say 99.9999% of NFTs that are printed in batches of more than 100 will be worth less than the price paid, again the vast majority worth nothing if it doesn’t have the second. Maybe even over batches of 10.

The other thing you need for long-term is value outside the image. Now, some very basic image NFTs will always be worth money, because their value outside being an NFT is as part of the zeitgeist and history of the technology. In my game example, the value the character NFT offers is that you are one of few, the only if you’re the first to buy the grouping, so in essence, the value is status. But the game actually has to be fun, which is the main problem with most of the interactive NFTs that people keep calling games.

In my opinion, most of them are basically more complex Tamagotchi pets. I feel like the majority of these young people buying into NFTs around these new “Pets” and things feel like they’re on the cutting edge, but they don’t really do anything except allow you to perform boring monotonous tasks.

Right now the greatest potential I see for NFTs, though, is DAOs. Without getting into a dissertation on what they are, I think that the decentralized system of power makes the collective immune from hostile outside takeover if designed properly. I really think non-profits should start DAOs around NFTs where 50% goes into the DAO to be used for that non-profit’s work but voted on and discussed by the DAO and 50% goes to the nonprofit to use as they please. The same goes for a SuperPac.

In the end, my points are that NFTs that maintain value with time and not decrease will have either rarity or value outside the image, and you’ll find that the majority have both.

Our NFT lines? Only small batch single NFts. No endless iterations of the same image with minor changes. Then, once we’ve sold season one’s NFTs, we’re done until next season when we’re releasing the new content, the concept art and story design of which is already done.

My advice on NFTs? Buy only things that you like and want to keep for personal appreciation, and buy things you find interesting or useful. And never invest in NFTs for long-term profit. It’s an unregulated market, and once the first regulation hits the entire game changes and everything you have could be worth nothing. Once regulated, long-term viability of investments can be reconsidered.

Leave a Comment

Your email address will not be published.