I would highly recommend against holding any type of generative pfp artwork.
NFTs are _pure_ greater fool theory. Pure hype. Pure speculation. Far from pokemon, imo. I don’t think what you net from holding is ever worth it, unless you somehow got into cryptopunkz or BAYC early.
Also you can make WAY more money with liquid ethereum than holding anything in the space.
That said, if anyone is looking to get into the space and looking to move any type of trophy / rare jp card I’d be happy to pay for it in ethereum (or whatever crypto you prefer) : )
Be careful! Lots of people getting scammed every day
But you could argue the same about dogecoin? Pure speculation and it’s market cap is more then the GDP of many small countries!
I feel we have turned into a generation of speculators - let’s not ignore that:
Meme Stocks, Meme coins, certain NFTs.
I had mixed views about it but I’m in now. The main thing which made me have mixed views about NFTs were certain people who would create them and not care about the secondary market and let it go to 0. But with projects that the creators care about the longevity of them - it could be different. All my opinion only and not financial advice.
Yes I bought into a project which turned into a scam - I saw the warning signs early and managed to sell my position early.
Creators are incentivized to keep working on projects by the perpetual royalties
Yeah but it’s risk reward isn’t it - if the project is failing:
How much do they have to invest into marketing etc to boost it’s value? Will it be sustained? Will the re-investment into a failing project actually yield ongoing royalties?
Is it cheaper to just flunk the project and do another one? etc
Complete novice here.
How does a NFT turn into a scam?
I guess i would call it a scam when they launch a product and it doesn’t fully sell out and they don’t honour what their ‘roadmap’ is - i.e promised to donate certain amount to charity, spend certain amount on marketing etc and they just abandon it
@cosrob, Minting is the equivalent of opening a pack. Pokemon company gets your money directly from this action. If the pokemon company sold you packs that didn’t give you what you thought the set had and was described as, it would be them taking your money and not delivering.
People who buy into the project or into the “pack’s cards” on the secondary market benefit the creator through % royalties on each sale. However, if there is not incentive for others to buy into it on the secondary market because of the issues of communication and product at launch, the people who bought in spent money and got scammed of what they thought the project would be.
In other larger news, there have been people who recently got scammed by accidentally releasing wallet information through fake support people which have been in the $100k’s+ range of dollars lost in NFTs that have been discussed on twitter last week. There have been some great threads about wallet safety recently written from more experienced people but stay safe out there.
What a lot of people miss here is that there doesn’t need to be some magic balance of “hype,” “speculation,” and “organic interest” (what even is organic interest anyway once you dig into it) for something to succeed or go up in value.
All you need is a group of people who collectively see whatever item they are purchasing as incredibly valuable, and who have the means and intention to purchase it. Whether it’s Pokemon cards, NFTs, meme coins, gold, precious gems, whatever. If everyone in this space is just riding for the money and doesn’t care about the underlying item, that’s when concerns are valid. Certainly there are some people like this. But the underlying characteristics of the item are completely irrelevant as long as enough people decide it’s worth something.
that’s called greater fool theory (more or less). and you forgot to include MZ in there. Anyone who is buying an NFT thinking “I don’t care if this will go up or down in value!” is probably lying to themselves. there are rarely the equivalent of a binder collector in NFT imho…
I guarantee very few people spend $1000+ on a card in Pokemon and think, if it goes to zero who cares. I’m sure most evaluate future demand too.
If people are buying NFTs for the secondary market benefits how does unique traits play a role in the value of a NFT?
Do specific traits provide more access to certain benefits? Or is it an elitist type of thing within the community.
Trying to wrap my around how NFTs can be about the art, (buying a picture and proving unique ownership) but also be a scam.
Not really…I explicitly said that if everyone just cares about the stonks that will negatively impact future value. We can debate the exact percentage of participants where it starts to get concerning and whether NFTs are approaching it, but just because you have a visible amount of people interested in solely money does not a crash make (see: Pokemon, sports, housing, stocks, etc). “Greater Fool Theory” is just a low-hanging fruit in most cases as it only negatively affects values when a very large percentage of people are subscribing to it. Speaking about the high-end NFT market, I don’t think we’re there yet. On lower-end NFTs similar to shitcoins and crypto pump and dump scams, absolutely it applies.
My larger point is that whether or not we personally can understand the dynamics and reasons why certain people value items, that does not preclude them from rising in the future. There is often this pronouncement of doom for NFTs (not necessarily dominating this thread though) based on this. However in reality no nonessential item has inherent value and the value of everything is socially constructed.
I spent $3000 on NFTs and I have accepted that they can go to 0 and if it does I’m not bothered.
I accepted the level of risk and that I can lose all my money. But I am willing to take this risk on the amount of money I have invested!
I don’t think I’ve ever posted something that fourthstar didn’t combat, lol. but I agree with you
Today I minted 3 of these opensea.io/collection/devols1 for 0.56 each and sold them for 0.9, 0.9, 1.9. In hindsight it was super scalable and could have easily minted 30 or 40 of them (altho they did fly) and made $30k in an afternoon.
Saturday I minted 4 Mutant Ape Yacht club and came out with a net of around 10 ethereum. The mint was 2.8ish and commons were instantly selling for 7
I sell to the greater fool. I am the purest form of flipper in NFTs, and I love every second of it. I hold nothing. I genuinely think that most people are buying because they want to sell it again. The market is vastly overpriced.
@cosrob, it’s the equivalent of the PSA 10 charizard versus PSA 9– most have little differences when it comes to utility/access.
Some projects like Veefriends of Garyvee’s NFT have specific access passes and they are only a few of those but others are mainly just a “flex” level but that in turn means more desirability on secondary markets because there are less of them.
I hate NFTs. They are raising the price of ethereum which is making it more expensive to stake and transfer crypto. Make them stop ;(
I minted my first NFT and instantly sold it for over 3x what I paid. I’ve never experienced something that felt so bubbly. I’m going to continue to participate using only my profits. Mint, instantly flip and then never look back. I won’t be holding any when 99% of these crash down.