NFTs — The Good, the Bad, and the Ugly
Over the past twelve months, the newest gold rush has been the Non-Fungible Token (NFT) craze, gaining momentum over the last ninety days. “Craze” is undoubtedly the appropriate term to describe what’s occurring, as those old enough to remember can attest to the similar fervor of the “dot com craze,” the “ICO craze,” and the “NFT craze,” all of which have one thing in common: the Fear of Missing Out (or “FOMO” as it is popularly known in industry parlance).
FOMO is an intriguing phenomenon, not only driven by fear but also by greed. It is highly contagious and not only dangerous for the sick and elderly. Still, it can also impact anyone of any age, clouding their judgment and causing them to make decisions based on emotion and euphoria.
The FOMO in the Internet craze drove massive stock market valuations for companies with zero revenue, no track record, and ill-conceived business models simply because they had “dot com” as part of their logo. The ICO craze had similar effects, resulting in numerous victims, some of whom ended up in jail, and whether deserved or not — some, with extreme wealth.
The NFT craze shares some of these commonalities, yet at the same time, it has also revealed new markets and opportunities that were not previously achievable without the blockchain. It has great potential to offer “trustless” platforms to existing markets while providing a first application for “starving artists.”
Now more than ever, artists worldwide can monetize their passion and creativity by digitizing their physical creations or creating in digital mediums.
The first popular NFT was issued on the Ethereum blockchain in 2017. The artwork was more of a parody than an accurate display of creativity and was called “CryptoKitties.” Surprisingly, it showed just how powerful the concept of an NFT was, gaining popularity so quickly that it clogged the entire Ethereum blockchain. Some of these cartoon cats were sold for six-figure amounts, with the fees even to buy or sell them is more than the cats’ worth.
Since then, the NFT marketplace has entered its next development phase, introducing numerous marketplaces and auctions exclusively for NFTs. This growth has revealed fresh concepts, use cases, and business models, showcasing that the platforms and communities are ripe for innovation.
We are at the cutting edge of platform innovation, with our patent-pending process utilizing advanced gamification and behavioral psychology set to even the playing field for both producers (creators) and consumers (competitors).
Over the following few articles, we will provide a detailed explanation of these advances, aiming to bring insight into why we think this platform is the future of NFTs. So stay tuned and get ready for an exciting journey!
By Lance Baker. The views I express in this article are my own and do not necessarily reflect the position of NeoWorlder Inc., the company.
