He's not alone; many people have expressed bafflement at the spectacle of non-fungible token (NFT) artwork selling for thousands, or millions, of dollars. Without a clear understanding of what happens under the hood, it can leave them feeling perplexed about what really goes on in the NFT space. 

So where does the value of an NFT come from? There are lots of variables that collectors consider, including ownership, identity, scarcity, aesthetics, community, technology, and utility. 

Value of ownership

First, let’s consider how NFTs accrue value. Many of the variables that affect their value fall outside the art itself.

For the first time, NFTs are providing proof of ownership over digital assets through the use of blockchain. Each NFT contract contains a token ID number, and following this, an address that belongs to the owner. In the Web2 world, ownership of digital assets such as artwork or music has historically been difficult to determine; for instance, someone could right-click and save an image and claim that they own it. And while the image exists as a download on their computer, is this really true ownership?

NFTs are a completely novel asset class. The tokens are cryptographically unique, and cannot be replicated or copied. They're stored on blockchain, a web of public ledgers that tracks both provenance and transactions. Because blockchains are a trustless, decentralized technology, there's no requirement for psychological trust involved in any of the interactions or transactions; no one person owns or commands them. And because their records are public, anyone can find out who's owned the NFT, its sales history, and when it was first minted. As a result, we can quite easily determine what is authentic, and what is fake, and thereby we can attribute value.

Another key property of NFTs is their metadata, which enables information to be inserted into the NFT, such as descriptions, images and names. These properties arguably form another factor by which value can be determined. Furthermore, it is not just images that fall under the umbrella of NFTs, but a whole array of media forms such as GIFS, texts, videos, music, and games can all be minted and sold as NFTs.

To recap: NFTs are stored on a blockchain, they have clearly defined owners, and they point to metadata files, which link to the creations themselves. 

Essentially, you have the ability to purchase ownership of a digital asset and transfer it to others without the influence of centralized platforms or third parties. It's this true ownership that forms the crucial differentiating factor for NFTs over existing forms of digital content, and enables them to accrue value.

Value of membership

But the value of NFTs lies in more than their proof of provenance; community is just as important.

Community is intrinsic to human nature, something that every person yearns for, or is a part of in some form. Whether it be niche interests, hobbies or friendships, online or digital, we all have our own groups where we interact with like-minded individuals.

Many NFTs serve as membership passes to a community. Anyone who can prove that they own a Bored Ape Yacht Club NFT, for example, is welcomed into a community where they can take part in a private Discord, receive invitations to social events, and network with other BAYC holders—including celebrities ranging from Snoop Dogg to Paris Hilton.

Evidently then, value arises from the micro-level rather than simply through the NFT's artwork. Value can be created amongst a tight-knit group of even 100 collectors, and it is the community that sustains the value based on their commitment.

Value of identity

Just as with community, our identity is inherently important to our everyday life; how we present ourselves to the world is intertwined with status, whether it's wearing an expensive watch, a band T-shirt or a mustache. 

Similarly, we use NFTs to tell the digital world something about ourselves. Many collectors have begun to use NFTs as their digital identity; a Bored Ape or CryptoPunk becomes intertwined with how the owner sees themselves and represents themselves to others. It's also an effective networking tool, verifying the holder as part of the NFT's community. Twitter has lent weight to this view of NFTs, enabling users to use verified NFTs as their profile picture.

And that digital identity has an associated value; one CryptoPunk holder turned down an offer of $9.5 million for his NFT, arguing that, "our online identities are just as strong—if not more powerful—than our real-life personas."

The value of NFTs is determined by the community; the market decides what they're worth, based on factors including what their previous work sold for, their portfolio of previous work, how long they have been creating and who has collected their work. By comparing it to other art forms, we can make well-informed choices about whether the art is valuable or not.

Scarcity and rarity

For the first time, digital artwork can be linked with scarcity; that limited supply can add to the value of an NFT. Collectors find beauty in the number or size of a collection; for instance, 1/1s are seemingly more valuable than an NFT from a collection of 10,000, given that there will only ever be one of the NFT in existence. 

Rare traits can also lend value to an NFT; the scarcer the rarity, the higher it will be valued. The most valuable CryptoPunks are the rare Alien and Ape punks, many of which have sold for multimillion-dollar sums. However, aesthetic preference can outweigh rarity; in some NFT collections, relatively common traits have become sought-after, suggesting the role that trends and the community play in determining value.

Influence and memes

Value can be arbitrary; something may suddenly gain value without any reason why. But more often than not, there's something that acts as a catalyst, and it can be the result of an outside force. Take Crypto Skulls, a collection that chugged along unremarked since its creation in 2017—until NFT influencer Gary Vee swept the floor, prompting a wave of hype that saw floor prices hit 4 ETH in a matter of 24 hours. It's not just the art itself that determines value; it's driven by individuals and influence.

"What's happened in the past year or so, with meme stocks, meme cryptocurrencies, and NFTs, is that random people on the Internet don't really care what the institutional establishment says is valuable," early NFT investor Nick Tomaino told Decrypt. "If the collective group of people on the Internet believes something has value, it has value."

Value of royalties

Unlike the web 2.0 world, where artists have to rely on copyright laws to establish ownership of their work, Web3 and NFTs ensure that the art is inherently their creation, and only when it transfers is the ownership changed.

For a long time, third-party platforms have acted as rent-seeking intermediaries in the art world, taking the lion's share of profits from secondary market sales. NFTs enable artists to profit from both the initial sale of their work and the secondary market via automated royalties. This provides a steady revenue stream for artists, as well as the promise of rewards from sales made as they established themselves in the art world, should they subsequently become more famous and their early work rise in value.

Value of utility

To date, most of the conversation around the value of NFTs has focused on NFT artworks. But in recent months, NFTs with additional utility have come into increasing focus.

NFTs that have gained the most traction have increasingly been those that offer utility through airdrops, in real-life events that can only be accessed via the NFT, in access to the metaverse, governance through DAOs, or even opportunities to mint other projects. 

It's the culmination of the factors discussed in the article so far: ownership, membership, identity, rarity, scarcity, utility, and aesthetic. They make the NFT more meaningful and help to engrain sentiment and attachment, both of which make the NFT much harder to just flip for financial investment.

More sophisticated forms of utility are emerging with the intersection of decentralized finance (DeFi) and NFTs, with some collections offering the ability to stake NFTs in exchange for tokens—offering collectors the opportunity to make passive income.

As demands for more utility grow, artistic value alone is no longer enough to satisfy NFT collectors. Communities are expecting more from NFT creators than a prototypical roadmap, irrespective of whether they're just an artist. 

Sometimes these expectations aren't realistic; the greatest NFT collections have succeeded based on new, exciting and unique ideas. Once they've been done, it's difficult for derivatives to sustain the same model over a long period of time, as the novel becomes repetitive and familiar. 

Given the speed and high stakes on the table, it's difficult to judge what the space will look like in a year. At the time of writing, gamification and tokenomics are two of the most sought-after utilities that a project can develop and provide for its community—but this could change.

So what does this tell us about ourselves? I think for one it tells us that we are not entirely in reality. When we are immersed in the NFT space 24/7 we can lose sight of what is important, what is real, and the cost of being so disconnected is bigger than we think.

An array of emotions have swarmed our minds, from panic, doubt, guilt, sadness, confusion. That being said, we should not cast blame on ourselves, irrespective of whether we were ignorant to the situation, we cannot change what has already happened, but we can certainly react to it, and we did.

Humanity and life are the most important things that we have as a species, and as the days have gone on, this has become increasingly clear where across the world communities have rallied together in support of those suffering and fighting for their country’s safety. What’s more, the power of web3 and the NFT space showcased their solidarity. Across the board, individuals, groups, collections were all demonstrating their support for Ukraine and those impacted by the invasion. From donations to tweets, to fundraisers, the crypto Twitter timelines were flooded with support with many asking how they could help.

When the Ukrainian government announced that they were accepting crypto donations, things began to change.

Ukraine / Україна @Ukraine

Stand with the people of Ukraine. Now accepting cryptocurrency donations. Bitcoin, Ethereum and USDT. BTC - 357a3So9CbsNfBBgFYACGvxxS6tMaDoa1P ETH and USDT (ERC-20) - 0x165CD37b4C644C2921454429E7F9358d18A45e14

3:29 PM ∙ Feb 26, 2022

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Perhaps one of the most important efforts was RELI3F, an idea created by Andrew Wang, and established by a team of NFT creators. Their initiative brought together 37 leading NFT artists for an NFT collection that sold out within 30 seconds and raised 410 ETH, or over 1 million dollars for the crisis in Ukraine. In just 1 week they have donated to 9 different charities and social impact organizations. Furthermore, secondary sales would go to further relief efforts and spotlight Ukrainian artists.

RELI3F @reli3fxyz

We are live ❤️

2:30 AM ∙ Feb 26, 2022

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The NFT space contributed to something unprecedented, something powerful and it brought funds directly to where they were needed the most.

Not only this, the use case for crypto has become even stronger whereby without the decentralized platforms, the opportunity to distribute such support would have been near impossible with the sanctions imposed on the affected regions where their displacement has seen the loss of savings, and making fiat withdrawals difficult.

So again, what does this tell us? It tells us that we are indeed in a powerful, and important position. It tells us that even during times of turmoil and war we can come together to make an impact and use the tools that we have been equipped with to aid others. With this tech, and the transparency of the blockchain we can change the way that charity functions, and evidently the distribution of crypto has been instrumental to the humanitarian support of the people of Ukraine.

There have been a number of other efforts, one being an NFT created by Olive Allen, a Russian NFT artist who burned her passport to display support for the Ukrainian people and to denounce Putin’s actions. All of the funds from the SuperRare auction will be donated to save the children, a Ukraine fund aimed at helping children around the world from issues such as trafficking, early marriage, being unable to obtain an education, and fleeing from violence. With NFTs being hailed as Ponzi schemes, this example has brought light to its importance, with crypto donations and NFTs directly being used by charities and the Ukraine government for humanitarian aid, wartime essentials, and military equipment.

Olive Allen @IamOliveAllen

I’m a Russian artist and in solidarity with the Ukrainian people I burned my Russian passport to create the NFT “Passport Burning.” All the NFT sale proceeds will be donated to @SavetheChildren Ukraine 🇺🇦Fund. Bid here @SuperRare: superrare.com/0x9ceb02e945d0… #StandWithUkraine️

10:25 PM ∙ Mar 4, 2022

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It is not just the artists and individuals in the NFT space, but DAOs and communities. Alona, an active member of the NFT space is the co-founder of the UkraineDAO and has been instrumental to its growth and support, helping to raise $7 million dollars in just 5 days.

The DAO which is comprised of volunteers, launched a party auction for a 1/1 NFT, depicting the Ukrainian flag on February 27th, and in total, 2174 ETH was raised with over 3200 contributors to the auction. Again, this exemplifies the sheer scale of support within the NFT space, and the use of crypto to directly send funds to support Ukraine directly, no matter where you are in the world.

So as the invasion enters the second week, we can reflect on what has happened. Despite the stigma in the space, we can confidently say that there is hope, and when we come together we can do powerful things. We should all spare a thought for those in Ukraine that are suffering, and to show support, and love for each other.

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Last year was unprecedented for NFTs. From blue-chip collections to celebrities joining into a huge influx of community members, the space has endured a meteoric rise compared to 12 months ago.

Although that's brought liquidity to the space, opportunities, and vast potential to grow, it's also attracted potential scammers. Due to the decentralized nature of the NFT world, many have been left vulnerable to a number of scams. And in many cases, there's been little anyone can do to counter them.

Scammers are becoming more sophisticated, and every day someone tweets about losing their most prized digital gems. Collectors need to be more cautious than ever. Here's how.

Prime targets

The NFT space is still in its experimental stages; many have compared it to the Wild West. There's no overarching customer support, so you can't report losses to "the authorities." Yet the space still generated billions of dollars in 2021. That's what makes it a perfect breeding ground for scammers.

So-called "blue chip" NFTs are being target the most, perhaps none more frequently than Bored Ape Yacht Club, which now boasts a floor price of 96 ETH. This means a scammer could rake in hundreds of thousands of dollars with a single click. In a space built on a strong sense of community and positivity, it's still frighteningly easy for anonymous scammers to infiltrate conversations and manipulate holders. All it really takes is one momentary lapse in judgment.

The blockchain and NFTs provided autonomy, but it also means we're responsible for our assets—no bank is watching over them for you. Understanding different types of scams will help keep your NFTs safe.

Types of scams

Fake mint pages

Often during highly anticipated NFT drops, a number of OpenSea pages pop up, which can make it difficult to verify which is the legitimate collection, especially if the collection isn't verified. With FOMO percolating and time ticking, many collectors fail to take the extra step of authenticating where the assets are minting from, and they mint the wrong NFT.

Soon after, the illegitimate collection is removed from OpenSea along with that NFT, but the scammers still have the buyer's money. This recently occured with Punks Comic, where many were tricked into minting from a fake OpenSea page, losing hundreds of dollars.

Steps to take

• Never click unverifiable links.

• Double check the domain link—a scam website can often be distinguished by just one different character.

• Confirm you're minting the verified link by going to the official collection's Twitter or Discord first.

Fake airdrops

Due to NFTs existing on the blockchain, your wallet address is public to everyone, and so is your every move. This means anyone can interact with your account, and they can send NFTs to your wallet without asking—as in an airdrop.

Scammers will often send NFTs to your wallet to get you to interact with them and to try to obtain your personal details, so it's best not to interact with any new NFTs unless you've verified their origin.

Impersonation

Impersonation is perhaps the most malicious scam, and it can entail a variety of methods.

Recently, a Twitter account was brought to my attention that had my profile picture, a copy of my bio, had tweeted some identical tweets to my own, and had amassed 5,000 followers. The only difference between my account and the fake one was that the fake one's username included an extra s: NFTs1nsight instead of NFT1nsight. That account could have easily fooled someone who hadn't seen my real account.

I can't be sure how the account was used, or if DMs were sent to potential scam victims, but I can only assume it was created maliciously. Such scams have become increasingly common, with some fake accounts adding thousands of followers to look more real.

Steps to take

• Having lots of followers doesn't mean an account is real.

• Always double check Twitter handles and who's following the account.

• If you verify it's a fake account, report it to Twitter.

There are also brand impersonations, where scammers similarly create a profile to offer support to victims of hacks, often on Discord or Twitter.

Fake links

Scammers will send fake OpenSea offers to people's emails, asking recipients to click the "view" button. Those links often will take you to a fake page asking for your wallet and seed phrase. (Never ever send someone your seed phrase.) Similar scams are rife on Discord. Once a scammer has your info, they'll transfer all of your assets to another wallet and sell them—and there's no way of stopping them. You'll find yourself in a race to salvage as many NFTs as you can.

Many scammers will sell NFTs at lowball prices just to unload them, and suspicious buyers may just scoop them up instead of inquire as to how the seller acquired them. Sometimes community efforts can help thwart this, but not always.

Jenkins impostor: A case study

Just recently, the Discord server of the prominent NFT project Jenkins the Valet was compromised by hackers after a moderator shared his screen and they were able to lock down the Discord, banning the mods and the founders themselves. The hackers impersonated Jenkins, which then enabled them to drop a fake mint link to a stealth drop, which many members believed to be legitimate. Not only was the link almost identical to the original site's, the hackers also created a stage to talk about the mint, banning anyone who questioned the authenticity of what was happening.

Unfortunately, many fell for it, and the community was scammed out of a few dozen ETH.

The lead moderator was tricked by scammers via Discord DMs that accused him of being a scammer himself. In a moment of panic and confusion, he tried to prove his innocence by sharing his messages. He shared his screen, which allowed the scammers to hack his Discord, and take control of the server.

The second issue was that Jenkins did not have full ownership of the server. Because of this, he was banned, which would have been impossible if he had owned the server. Since then, the permissions and ownership have been transferred and control has been regained, which should help prevent future scams.

The Jenkins team reacted decisively in response to the hack, rebooting its Discord from top to bottom, introducing 24/7 moderation via bots, conducting an audit, and compensating everyone who lost ETH in the scam. Jenkins also gave away one Bored Ape Kennel Club NFT as a way to apologize for the unfortunate incident.

A small upside is that the hack means they're now better equipped to battle future scammers. (You can read more about the timeline of events and the full situation here.)

Little Lemon Friends @LittlelemonsNFT

There is a hack/scam(bypasses 2fa) that scammers are using to compromise discord accounts. If you are a project founder/admin, this is IMPORTANT. Our server just got attacked. Here's how, a🧵

8:42 AM ∙ Jan 3, 2022

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Security best practices

Here are more ways to keep your assets safe:

• Ensure you have verified links before clicking them—never click on random or broken links sent by unknown sources.

• Never share your screen.

• Before minting anything, make sure to check the contract address, which should specify where the NFT was minted. If it's been verified on OpenSea, it should be legit. If it looks too good to be true, it probably is.

• Never share your recovery phrase with anybody.Keep your seed phrase away from your phone and computer—store it offline ("cold storage"), with multiple copies in safe places.

• Always confirm you're minting on the verified website.

• For many, it's easier and safer to turn off Discord DMs completely due to bots and scammers abusing them.

• Bookmark verified sites like OpenSea—it helps prevent landing on fake pages.

• If you need assistance, you will never be sent a DM first—turn to official sites for assistance, not social media.

• Ask trusted friends questions, turn to official teams for answers, and don't be afraid to ask questions that prioritize your safety and security.

• Use two-factor authentication, an extra layer of security.

• Use strong and unique passwords—it's wise to use a different password every time you create an account.

• Use a hardware wallet such as a Ledger or Trezor—these cold wallets are offline, so nobody can access it other than you through your private key.

• DYOR. Before you do anything in the NFT world, make sure to research the collection, the seller, the contract, the link, and other details.

richerd.eth ᵍᵐ (マ,マ) @richerd

On Securing your NFTs 🔒 This week I have looked at 5 different cases of wallets being compromised and NFTs being stolen from their owners. It breaks my heart every time this happens, but the patterns are always the same. 1/ Below are some rules to live by to stay safe 🧵👇

4:45 AM ∙ Feb 2, 2022

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Always remain vigilant in the NFT space. One brief lapse in judgment can mean the difference between a full wallet and an empty wallet.

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When I first entered the space in July 2021, it took me another two months to understand what on earth was going on in this exhilarating community.

After some time spent observing from the sidelines, I began to navigate, connect, and learn through writing and interviewing some of the most prominent names in the space. Like a jigsaw puzzle, I was slowly assessing how I could fit into such a fast-paced and euphoric climate. 

For many, it’s difficult to grasp where to begin and how they can fit into this intricate dynamic to add value. The entirety of the NFT space is built upon experiment and change. Subsequently, to excel in such a space your mindset and work ethic must reflect these values. We have to be flexible and to understand that nothing in NFTs will remain the same for long. Fundamentally, we have to grow.

Bobbyᵍᵐ @QuiteBrazen

Web3 and Mindset: What do we talk about when we talk about mindset? And how can our mindset make or break our ability to adapt to and thrive in this wild web3 space? 🧵👇

10:58 PM ∙ Feb 10, 2022

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As Bobby outlines in this thread, we have to consider the importance of our mindset. They distinguish between two spectrums, a growth mindset and a fixed mindset. The former is one that is fluid, open, and understanding of change, while the latter is closed and resistant to change.

A fixed mindset will not succeed in the NFT space. It is an inevitable pathway to failure and those who come and go are often those with this same outlook. In a space that is rapidly evolving and, in many cases, unpredictable, you have to be acceptant of failure, challenges and be prepared for the extreme highs and lows.

When we first join the NFT space, we all virtually start from zero: we have to learn the ropes and adjust to the community, culture, and atmosphere. This takes time, and still, nobody is perfect. All that we can do is learn, and simply be better going forward.

Aim to be creative, innovative, acceptant, understanding, and always foster a mindset that focuses on growth.

How to grow

So what does it take to make it in the NFT space? Again, there is no easy or simple answer. Although there is no secret formula, one thing is for sure and that is that there are no shortcuts. You cannot expect to put in minimal effort and receive maximum rewards.  

First, immerse yourself and simply observe your surroundings. Then decide how are you going to add value to the space. What is it that you can contribute? Use people already in the space as sources of inspiration and comparison, then build your own unique niche. Be identifiable, be personal and always be your own true self. 

If you find that you are not seeing results, remember this isn’t a sign to leave but a sign to adapt, learn, grow, and never give up. You never truly know what is around the corner, but if you are persistent and finish what you start, then you will surely be rewarded. In a space that moves 100 miles per hour, patience is key.

Change

You may find that what you are doing or creating is not working out or perhaps you aren’t fully happy with the result. Instead, why not try something new? Flexibility and the ability to adapt are key skills in the NFT space. Nothing will always work, and sometimes it is best to start fresh and try something entirely new. Quitting in itself, and knowing when to stop is a strength that is extremely important. Some of the most successful have mastered the art of quitting, proving that knowing when to draw the line is something we must all try to do. You should never feel guilty or ashamed for embarking on a new path. Try different styles, experiment, and break out of your comfort zone. This is precisely why the NFT space is so creative: there are no boundaries and you are in a position to break them. Change is inevitable. 

Mistakes

We all make mistakes. It is impossible not to in the NFT space. Whether you are new to the space or a veteran, we’ve all FOMO’ed into a project and consequently been stung when they fizzle out. What about the project you were confident in that turned out to be a rug pull, or the one you forgot to mint which eventually turned out to be bluechip? Don’t let these past mistakes negatively affect your future. It’s not easy to recover from the emotional and mental pain, but only those who do will prosper in the space. The ‘playground’ is fast-paced, demanding, and exhausting, but at the same time, there is a community there to support you. Reach out, ask questions, and enjoy learning.

It is easy to be deceived, to make mistakes, and to fail. But once they have happened, let these mistakes be lessons for the future, and don’t allow moments of the past to interfere with your present. Reevaluate and take control and you will always come back stronger.

Learning

So where can you learn, who are the pillars in the community that we can trust? When you enter the space there is so much noise it is almost impossible to filter the good from the bad. Furthermore, as the days go by, more and more fake accounts with malicious intent are using the NFT space to their own benefit. We must be cautious, and source the good actors before making any decisions.

Importantly growth comes from those around you, especially if they are positive and uplifting. Tailor your circle and sources of information, to excel in the space you cannot afford to have your energy drained by negativity, or toxic accounts.

To be your best, you have to be surrounded by the best, so let’s zone into the best sources of information.

NFT Ethics:

This is a very important Twitter account that will bolster your understanding and knowledge of scams and rug pulls in the NFT space. The account takes deep dives through the use of threads investigating and evidencing the known and unknown scammers.

Ohh Shiny Show: 

A Twitter space hosted by Ohh Shiny and Herb that provides a platform for creators in the space. You can be sure to extract value from the daily shows that last an hour each. Whether it is a project small or large, you will learn so much from simply tuning in each day.

Decrypt / Andrew Hayward: 

Andrew is a senior writer at the web3 publication Decrypt, which covers all crypto and NFT related news. Andrew specifically covers NFT content and has reported on some of the most topical events. The articles will better help you to understand the surface and the depths of the NFT space.

Crypto Gucci:

This account provides an abundance of helpful information through weekly and monthly threads that extensively cover the key events and moments in the NFT space. If you want to stay informed with everything that has happened, the threads are certainly a good starting point.

Richerd:

Richerd is a smart contract artist and co-founder of Manifold. He is an account to follow especially for newcomers who are not entirely sure about how to best secure their NFT assets. He provides useful threads on how to protect yourself and avoid scams, as well as how to begin creating in the NFT space.

6529:

6529 is an important figure in the space who provides insightful threads regarding the metaverse, the NFT space, and web 3. If you are new to the space he offers a very detailed glossary of NFT terms to get you up to speed with the community lingo.

Zeneca:

For multimedia coverage of the NFT space, Zeneca offers a range of information through Youtube, Substack, Discord, and a podcast. Within this, he discusses the community, projects, analytics, and how to grow/navigate the NFT world.

Final thoughts

To thrive in the NFT space, we must first learn how we can grow. This starts with our mind and our understanding. Embrace the challenges, immerse yourself in the space, set your goals, learn from setbacks and always focus on how you can grow.

If you liked this article, feel free to share it with your friends and subscribe to the newsletter!

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For many, it is difficult to comprehend how NFT art is selling for hundreds of thousands of dollars, and without a clear understanding of what happens under the hood, it can leave them feeling perplexed about what really goes on in the NFT space. The question that many are asking is do aesthetics really matter? Surely not if a couple of pixels are selling for thousands of dollars. Or is there something more fundamental behind the psychology of collecting, there must be more substance behind why they attribute value to the NFTs they do?

The answer is yes…

The underlying value of NFTs is enriched by a number of important variables, from ownership, identity, scarcity, aesthetics, community, technology, and utility. Each value is important in its own right and serves to increase the desire and value of a certain NFT.

In this article, we will explore these questions and the logic that collectors apply when collecting NFTs, specifically what influences the value and why they are important.

Value of ownership

Firstly let’s consider how NFTs accrue value, how is this possible? Well, they are valuable for a number of reasons, many of which fall outside the realms of the art itself.

Despite it taking centuries for money to be inherently valued and exchanged, cryptocurrency is quickly challenging the status quo whereby NFTs are providing a way of channeling and capturing the public attention through non-fungible forms. For the first time, NFTs are providing proof of ownership over digital assets through the use of the blockchain, wherewith each NFT contract there is a token ID number, and following this, an address that belongs to the owner. In the web 2.0 world, to own something digitally would be difficult to determine, the word ‘ownership’ is multi-faceted and can be interpreted through multiple meanings. For instance, someone could right-click and save an image and claim that they own it, technically they would because now it belongs as a download on their PC. But is this really true ownership?

Importantly, NFTs are a completely novel asset class, while also being non-fungible in nature meaning that they are 1/1 and unique. They cannot be replicated or copied due to the fact that they are stored on the blockchain, a web of public ledgers where both the provenance and transactions are tracked. Subsequently, anyone can find out things like, who owned the NFT first, how much it was purchased and sold for, as well as when it was first minted. As a result, we can quite easily determine what is authentic, and what is fake, and thereby we can also attribute value.

NFTs have metadata, arguably this is another source of value whereby information can be inserted via properties. The most widely used are descriptions, images, and names. Furthermore, it is not just images that fall under the umbrella of NFTs, a whole array of media forms such as GIFS, texts, videos, music, and games can all be minted and sold as NFTs.

It is also important to note that the blockchain is trustless, meaning that there is no requirement for psychological trust involved in any of the interactions or transactions, it is decentralized, automated by computer technology and no one person owns or commands them. This is the key difference between web 2.0 and web 3.0.

So to recap, NFTs are stored on the blockchain, they have clearly defined owners, and they point to metadata files, which link to the creations themselves. These 3 components will therefore allow you to buy and sell NFTs. Essentially, you have the ability to purchase ownership and transfer it to other owners without the influence of centralized platforms or third parties. As a result, this form of true ownership is what enables NFTs to accrue value.

Value of membership

It is not just the provenance that serves to create value for NFTs, membership is just as important.

Humans are cultural, tribal and have a desire to communicate. Community is a concept that is innate within all of us, something that every person yearns for, or is a part of in some form. Whether it be niche interests, hobbies or friendships, we all have our own circles where we catch up with like-minded individuals. It may be in the real world, or it may be online digitally.

NFTs are one tool of fostering community, and many NFTs serve as membership tokens. NFTs provide us with a means of recording, in a community, which members of the community own the particular NFT. Take for instance the BAYC, anyone who can prove that they own a bored ape are welcomed into a community where a number of different utilities await them. There is the opportunity to enter a private discord, they are invited to social events and meet ups, and their investment presents them with the opportunity to connect with other BAYC holders.

Not only this, but they also have the chance to access additional tokens such as through airdrops including the bored ape kennel club and the mutant ape yacht club. This same concept has been mirrored by many NFT collections that have preceded whereby purchasing the NFT provides you with an exclusive ticket into that specific community, whereby holders have the chance to enter the ecosystem and benefit from the community that they are in, socially and economically. Someone without the NFT would not have the same access, or ability to network, build their brand and profit from the collection.

Evidently then, value arises from the micro-level, much deeper than what is illustrated through the art of the NFT. Value can be created amongst a tight-knit group of even 100 collectors, and it is the community that can help to sustain the value dependent on how committed they are.

Value of identity

Just like the community, our identity is inherently important to our everyday life, and in many ways, it is intertwined with status. We present ourselves in a way to the world so that they can understand our identity and background. We may wear an expensive watch, we might style our hair in a certain way, or we could even grow a big bushy mustache. All of these things are conscious decisions, and we maintain them often in an attempt to tell the world something about ourselves. Although NFTs are abstract concepts and are not physical, they work in the same way whereby we use NFTs to tell the digital world something about ourselves. Whether it be a valuable 1/1 painting displayed in your metaverse gallery to express your taste, or perhaps it is an avatar that you set as your profile picture, they each have implications towards how the wider world sees you, and thus value is similarly attached.

Subsequently, many collectors have begun to attach NFTs as their digital identity, and it has been this active identity that has expanded ecosystems and encouraged NFTs to thrive. I use a bored ape as my profile picture on Twitter and Linkedin, it is how I see and represent myself to others. Moreover, it is an effective networking tool, it verifies that I am a part of the BAYC community, and I reap the benefits for this.

As an example, Crypto Punk holder Richerd turned down a $9.5 million offer on his NFT, preferring to opt with the longevity of his identity over the mouth-watering sum. Clearly, in some cases, the identity interwoven within our NFTs is proving to be invaluable, whereby brand value and community are seemingly more important than anything else. When discussing this with Richerd he stated,

“You could make the case that our online identities are just as strong—if not more powerful—than our real-life personas. Online you can be anyone you want if you chose, the metaverse does not discriminate against age, gender, or race. So for a lot of people, you can actually be more free with your thoughts and ideas.”

I wrote more about this in the article below.

137pm.eth @137pm

Here is why @richerd turned down a $9.5 million dollar offer for his Punk. By: @NFT1nsight

8:42 PM ∙ Nov 15, 2021

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Value of aesthetics

Background

NFTs are given value directly by the community, it is only they who can attribute monetary value and they share this agreement with each other. Subsequently, it is up to the community and market to decide what is valuable and what is not valuable. But it is not just reflective on the artwork itself, a number of factors can be considered regarding the art and artist. For instance, we are able to find out what their previous work sold for, we can see how long they have been creating, we can see who has collected their work, we can compare it to other art forms and as a result, we can make well-informed choices about whether the art is valuable or not.

Scarcity and rarity

Collectors find beauty in the number or size of a collection, for instance, 1/1s are seemingly more valuable than an NFT from a collection of 10,000 given that there will only ever be 1 of the NFT created. Take Andrew Wang, a Cool Cat collector who purchased the 1/1 upside down cat. It has exploded in value over the months as the project has become more popular and desirable. It is also the reason why he turned down a $1 million dollar offer, proving that scarcity is a fundamental contributor to the value of NFTs.

Similarly, this is the case for rarities, a collection may only have a number of traits that can be attached to a certain NFT. Evidently, the scarcer the rarity the higher it will be valued. However, rarity can also accrue from personal preference, a number of low ranking traits have evolved over the months into traits that are sought after and thereby suggesting that trends and the community are paramount to the attribution of value.

Influence

Value can be arbitrary, something may suddenly gain value without any reason why. But more often than not there is something that instigates the spark, and it can also be provoked by forces outside of the art. Take for instance Crypto Skulls a collection that has been around since 2017. They failed to gain any significant traction for years until recently, popular influence in the NFT scene Gary Vee swept the floor and thereby encouraged a wave of hype. The NFT collection was thought to have had the same cultural significance as Crypto Punks and it skyrocketed in sales as the floor rose to over 4 ETH in a matter of 24 hours. Reflecting on this, it is not just the value of the art itself but it can also be through the force of individuals and influence.

Value of royalties

Unlike the web 2.0 world where artists would have to enforce copyright laws to maintain the ownership of their work, web 3.0 and NFTs ensure that the art is inherently their creation, and only when it transfers is the ownership changed.

Artists have typically suffered whereby making money from their art in the traditional world has proven difficult. For a long time platforms have retained power over the art world, and those that have been able to make money off their craft have had hefty chunks taken away from these third-party platforms. However, now NFTs have increasingly attracted the art sector given that there is the opportunity to profit from your work via automated royalties. For instance, an artist could sell an NFT, and from there onwards, they would also make a royalty each time that it trades, and the royalty would increase as the value increases. Subsequently, if the artist becomes more famous and the art becomes valuable, the artist also received the share of increased wealth. This, therefore, demonstrates the value that NFTs can provide where the technology is presenting the opportunity to benefit from the sales of their art for the first time.

Value of utility

Perhaps one of the most important contributors to the growth of value for NFTs is utility.

Although when NFTs first came into fruition the entire focus of value was on the art, this has significantly shifted in recent months whereby a number of additional factors are considered. Namely, what the team proposes in their roadmap, a vision of their plans, and what they can provide to the community. NFTs that have gained the most traction have offered utility through airdrops, in real-life events that can only be accessed via the NFT, access to the metaverse, governance through DAOs, or even opportunities to mint other projects. As a result, these benefits and plans are what make an NFT more valuable, and thus it becomes clear why NFTs such as the bored ape yacht club are selling for hundreds of thousands of dollars. It is an accumulation of all of the factors discussed in the article so far. Ownership, membership, identity, rarity, scarcity, utility, and aesthetic. They make the NFT more meaningful and help to engrain sentiment and attachment, both of which make the NFT much harder to just flip for financial investment.

The application of NFTs is endless, more recently, the intersection of DeFi and NFTs has become more prominent whereby collections are offering the ability to stake NFTs in exchange for tokens. Subsequently, collectors have the opportunity to make passive income without having to do anything, other than investing in the NFT project.

However, as demands for more utility grow and collectors diverge from the value seen within just art. Communities are becoming less satisfied with the prototypical roadmap and are expecting more of the teams themselves, irrespective of whether it is just an artist. The problem is, sometimes these expectations are not realistic. The greatest collections have succeeded based on the novel, exciting and unique ideas, and once this has been done, it is difficult for derivatives to sustain the same model for a long period of time, it becomes repetitive. Given the speed and high stakes on the table, it is similarly difficult to estimate what the space will look like in a years time, what was popular last week can quickly fall out of fashion a week later, and thus speculation is just as important as a utility in attributing value.

At the time of writing, gamification and tokenomics are two of the most sought-after utilities that a project can develop and provide for its community. However, this may also change by the time that you are reading.

Final thoughts

Reflecting on all of the above, value does not simply arise from the art itself. Although this is equally important and possible, is the utility and factors beneath the art that add the most value to the NFT. From membership, identity, ownership, and functions such as royalties, it is the projects that incorporate these together that see the most success. It is not possible for a project to create a collection and hope to sustain value in the long term without one or more of these elements, and this had been made evident by some of the biggest blue-chip collections that continue to build beyond the art itself.

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Inevitably, teams have emerged from outside of the space, they market the collection excellently, drawing in unsuspecting collectors. But as soon as they sell out their drop, they disappear, leaving the collectors holding empty bags, and almost impossible to restore. It can be extremely difficult to decipher legitimate projects from those that are simply there to make money, especially for beginners and since scammers are becoming smarter.

So in this article, we will discuss the ways in which you can judge a collection, their cues, and the nature of ‘rug pulls’.

What is a rug pull?

Firstly let’s unpack the jargon, ‘rug pull’ is a term within the crypto and NFT world used to describe when a team/developer runs away from the collection, taking the gains with them.

NFT projects will promise a variety of utilities in their roadmap, without any real substance behind them, in reality, they are lies. But of course, expensive marketing and premade artwork are usually enough to entice communities into their trap, creating a fake bubble of hype and fomo. Projects will go to extreme lengths and costs to make their collection look authentic, despite the fact they are planning to rug pull from the beginning.

This is further enabled by the fact that within the NFT space, our attention span is minimal. We fail to research sufficiently and instead, we trust what we see on our timelines, using someone’s tweet as enough evidence to make a decision. Moreover, once the snowball effect starts, those who question it will quickly get censored, the team won’t allow anyone to burst the bubble, and even if they do, who will listen anyway.

Perhaps the most important enabling factor is their anonymity, given that they are anonymous they will not face any implications for committing such a scam, and it will allow them to quickly disappear without any real issue. Although true, in extreme cases, doxxed teams have similarly committed scams, such as the Big Daddy Ape club who were verified by Civic Key, yet still, this did not prevent them from scamming their collectors out of $1.2 million dollars. Evidently then, anyone can commit a rug pull, irrespective of whether they are anon or doxxed.

Civic @civickey

The entire team at Civic has been working as quickly as possible on several targeted responses to the reported BDAC rug pull.

8:35 PM ∙ Jan 11, 2022

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Warning signs

Although you can never be certain that a project will fulfill its roadmap, there are a number of ways you can assess the legitimacy of a project. Red flags can appear at any time, whether it be at the beginning, during the presale, or even during the mint. Below are some of the key indicators to watch out for.

1.     The team. Who are the founders? If they have chosen not to identify themselves the likelihood that they are staying for the long term is doubtful. Before investing in a project ensure that you vet the team, and consider their reputation. Although teams have been successful anonymously, it is likely that they had a good reputation prior to launching, if a team comes in with 0 experience and reputation, as well as being anonymous, this is clearly risky.

2.     Bots. More often than not, projects use fake accounts and more recently, using ape profile pictures to create the illusion that a project is supported by high calibre collectors. Taking this as evidence is not enough, you must research into who follows them, and who engages with their posts.

3.     Communication. Social media management is key, how do they interact with the Discord and Twitter community? If they are failing to respond to questions or simply ignoring them, this is a serious red flag. If they are pushing for likes, follows and raids, and the entire conversations within the chat are seemingly artificial, this is also something to be wary of.

4.     Promotion. It is something that all projects do, it is necessary for the marketing and reach of a collection. However, there is a difference between organic marketing and paid marketing. Often, collections will hire Twitter accounts with 100k plus followers to shill their collection to unsuspecting followers. If a collection is utilising this form of promotion, it is a key indicator of their intentions. Always check who is shilling a project, and why.

5.     Effort. Website design is also something to factor in. Do all the links work correctly, where do the links take you, are they informative with content or are they dormant? What is the design like? If it is rushed there is only one clear end goal, and that is a swift exit. Although the website is not the deciding factor of whether a project is a scam, it is still something to keep in mind.

6.     Contract. Is the contract open source? Legitimate projects will have no issue with allowing anyone to view the contract as there is nothing to hide. On the contrary, if a project decides to hide their contract, this serves as a stark warning of what is to come.

These are just examples of red flags, they do not necessarily mean that the project is a scam if they are found. The points discussed above are simply warnings to be aware of. You should always do your own research and form your own opinion before investing in anything.

If something appears too good to be true, then it probably isn’t true. Always prioritize organic growth over hype. For many, there is the idea that once you invest in any old project, you will soon get rich, and this could not be further from the truth. Investing in the right project is not an easy task, even for the most proficient and experienced traders. However, if you do your own research, and avoid collections with red flags, you can be sure to make a good start.

How to avoid being rugged

• Always DYOR and never copy the activity of influencers or traders, everyone has their own reasoning for investing, and this is not the right way!

• Vet their profiles, explore their Twitter, website, medium, discord. Always look out for bots and suspicious activity.

• Find out who supports them, are the reputable names of the space aware of them? If there are no mutual connections this should be a concern.

• Go to their discord and speak directly with the team/mods, get a feeling of their vision and ambitions and how they communicate with their community.

• If they are promising audacious rewards and giveaways, this is something to be aware of. Never be lured in by numbers!

• Review their Opensea, are they totally transparent about their activity and transferring of NFTs?

Finally, stay safe, be smart, take your time, assess the situation, step back if you need to, and only invest what you can afford to lose.

We are still so early and there are always going to be more opportunities!

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It is evident that NFTs are set to become one of the most important pillars for the growth of the tech world, with so many ways of applying them, the artwork is just the tip of the iceberg. Furthermore, NFTs are helping to solve real issues, whether it be social or economic they have changed the lives of many.

To understand the full potential of what NFTs can achieve, we must explore much deeper below their surface level. However, with all of the positives that the blockchain provides, there are similarly negative implications due to its decentralized and anonymous nature. In this article, we will discuss the role of anonymity on the blockchain, and how this correlates with issues such as privacy, ethics, and reputation.

NFTs as identity

NFTs are proving to be important tools for the building of a secure identity. Rather than having to log into something with your personal details to verify that you are you, an NFT on the blockchain can verify this information and act as the key without any need for a third party. Clearly, tokenized identity has the case of making markets more private and more secure, two key benefits that are lacking in the web2 world.

Furthermore, the blockchain is immutable meaning that once something is added it cannot be changed. As a result, we can monitor transactions on the public ledger, and as such, maintain greater levels of transparency and accountability in the ways and means in which users act. Again, this is something much more difficult to track in the web2 world whereby transactions and accounts of big companies are often private.

Anonymity and Pseudonymity

But what does this mean for anonymity? The crypto space has always operated under anonymity and pseudonymity, the former being where you are unidentifiable, and the latter being where you are identifiable, but you choose not to disclose your real identity. Within the NFT space, it is rare to come across a doxxed account, more often than not they will be using an NFT as their identity in some shape or form.

As a result, anyone has the ability to create without being constrained by demographic information, such as who or where they are from. This is perhaps one of the most significant benefits, and it has allowed many users in the space to achieve success, without having to reveal who they are in the real world. Clearly then, we can say that NFTs and the blockchain serve to create a fairer dynamic and a more user-friendly nature. In addition, they turn anonymity into pseudonymity.

It is not our wallet that defines who we are in the NFT space, it is our NFT that constitutes what is called our pseudonymous identity. Our online interactions are made as a result of this with the NFT acting as the key. This simple line of code illustrated by an image defines our reputation, our authenticity, our legitimacy, and our identity. To an extent, this helps to foster rules, ethics, and principles, as we are conscious that our actions will impact our reputation. However, this is not always the case whereby many pseudonymous identities have manipulated their audiences and bent their trust, simply because they know that they will not face any serious implications in real life.

Reputation

Anonymity provides users with a sense of protection, and in a decentralized world where anonymity and pseudonymity are the norms, there are virtually no rules stating how individuals should act. Other than moral principles, which not necessarily everyone will abide by, the space is considered the wild west. Furthermore, being anonymous means that there are no risks to your real identity being tracked, as well as almost no incentive to take accountability for their actions, meaning that they have the opportunity to act maliciously, or nefariously without any issue or penalty. Of course, this has led to a number of bad actors entering the space, with the intent to scam others as well as projects that have rug pulled their entire collection. We have seen cases where big influencers in the NFT community have manipulated the trust of their audience, pumping projects and spreading misinformation about their trajectory, and then when the time is right, they disappear.

In the NFT space, your reputation is arguably your most important currency. You may have all the money in the world, you may have the best ideas, you may have the most profitable network connections, yet with one wrong move, your reputation can be tarnished. The community will blacklist you and it will be difficult to restore any value once the damage has been done.

So think about your actions, pseudonymity might protect you from real-world damage, but it won’t protect you forever in the NFT space. We have seen it time and time again. Bad actors will come and go, but it will be those that uphold values of truth that will ultimately survive in the NFT space.

Take for instance the OpenSea product chief that was accused of using internal information to buy NFTs promoted on the homepage, and therefore having access before anyone else. Upon investigation from the community, the issue was brought to the mainstream media’s attention and he was removed from his position at the company as a consequence. This insider trading is just a glimpse into the manipulation of audiences and communities that has become rife in the NFT space.

Users are able to hide behind their NFTs and engage in distrustful activity, whether it be manipulating their audience, promoting collections, or simply scamming others. This is a clear issue that arises through the nature of anonymous and pseudonymous identities, especially amongst the influencers with power. Consequently, it can be difficult to know who to trust, and it is something we have to be conscious about as we move forward in the NFT space.

Furthermore, it is important that we challenge this behavior, and hold the people in power to account, with the transparency of the blockchain, it is easy to follow transactions and investigate who was behind them. The community is becoming much more adept at the cues of bad actors, learning from prior mistakes. Furthermore, Twitter groups are coming together and creating investigative spaces, challenging behavior, and doing the right thing for the community.

Ethics

Just days ago the NFT Twitter community was forced into jury when NFT influencer Beanie had his real identity doxxed, and allegations against his past surfaced. NFT Ethics, a Twitter account dedicated to uncovering the truths about the NFT community policed this via a 70+ Twitter thread. According to the thread, it was outlined that Beanie had a past of fraudulent behavior and that his NFT influence was just the tip of the iceberg. Whether it be domain names, stocks, or NFTs, the thread uncovered clear trends in his behavior and the way that he influenced his audiences. NFT Ethics is just one example of a Twitter page that is diving deep into the blockchain, hoping to establish new, self-regulating ways to create an ethical blockchain and ecosystem that doesn’t reward perverse incentives.

NFT Ethics @NFTethics

1/ In this thread we will disclose the identity of one of the (currently) most (in)famous NFT influencers. But before we do that, we first explain our (philosophical) justifications and provide some important disclaimers.

12:19 PM ∙ Jan 17, 2022

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It has similarly brought up the case for more investigative journalism as proposed by Andrew Wang, where a cohort of individuals would research and dig deep into alleged misconduct and scams in the community. The current issue is that there is not enough time or return for investigating these issues. By creating a DAO, the community could help to police misconduct, while similarly being rewarded for their time. However, this could evolve into something dangerous, a cancel culture that we knew from web2 could return. At the same time, we have to be equally aware of those who are using ethics, and morals as a weapon to take down other individuals. This could be enabled by the premise that they are doing what’s right for the community, when in reality they could have ulterior motives, preferring to gatekeep.

Nonetheless, with the correct protocols, and standards in place, this idea could prove to be crucial to holding influencers accountable for their actions, and it is needed more than ever.

Final thoughts

Members of the NFT community are certainly becoming more skeptical of projects, influencers, and the reasons behind why they operate anonymously. As a result, NFT projects are taking extensive actions to ensure that they gain the trust of their community. For example, the Psychedelics anonymous NFT collection has taken the steps to doxx their entire team, revealing their treasury, and allocations for funds.

Although not every project is required to display this level of transparency, it certainly sends a strong message out to their community whereby they can be reassured that the team is accountable, and staying for the long term. Today, it is not enough for a new collection to enter the space anonymously and expect the community to trust their intentions from the outset, the key to unlocking trust is reputation.

NFT collections can remain anonymous while still successfully building a project and community around them. However, there has to be something to judge, for instance, reputation can be achieved through previous positive community building or via collaborations where the collaborator is not anonymous and can thereby act as a source of trust.

For the community to move forwards with confidence, there have to be principles, there has to be clear trust, there has to be reputation, and there has to be accountability. You should always consider these values before interacting with any collection or taking any piece of advice from individuals about NFTs.

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NFT Insight

Jan 18 · 6 min read

This story comes out of PubDAO, a decentralized news wire.

Throughout the 50-year history of home video gaming, games have been a diversion, something to take your mind off a hard day’s work. But now, a new generation of video games is using blockchain technologies like NFTs to reward gamers with cryptocurrency.

In some countries, these “play-to-earn” games are already enabling gamers to make a living by playing video games, with scholarship programs and academies springing up to help players navigate this strange new world.

While some have welcomed the advent of play-to-earn games, arguing that they enable users to receive rewards for an activity they previously would have undertaken for free, many gamers have expressed disquiet over the unwelcome intrusion of commerce into the escapist world of gaming.

What are play-to-earn games?

Simply put, play-to-earn games are video games where the player can receive rewards with real-world value.

While people have been earning money from playing video games for many years through practices such as “gold farming” and unofficial marketplaces for in-game items, the emergence of blockchain technology and NFTs has, quite literally, changed the game.

NFTs, or non-fungible tokens, are cryptographically unique tokens that can be used to prove ownership of content such as images or music. In blockchain games, they enable users to take ownership of in-game items, such as virtual clothing or plots of land.

Unlike in regular games, where in-game items are held on walled-off data networks and owned by the companies that created the game, NFTs enable players to own the unique assets that they purchase. Moreover, once you own the NFT, you can freely sell it outside of the platform where it was created, something that’s not possible with regular games.

That means that NFTs representing in-game items can be traded and sold for fiat currency on any NFT marketplace. And because those NFTs have scarcity, they have real-world value.

With regular games, there’s no incentive to play other than pure enjoyment. The relationship is one-way: you pay for the game, and unless you’re a professional esports player or a streamer with a big following, you will never be able to monetize your playtime. By contrast, blockchain gaming offers players the opportunity to earn real money.

Because blockchain technology enables users to transact wherever they are, players can transfer value and be paid to play irrespective of who they are, or where they are in the world.

The rise of the play-to-earn model

The biggest play-to-earn game by far is Axie Infinity, a Pokémon-style monster-battling game launched in 2018 by indie studio Sky Mavis. The game sees players collecting cartoon creatures called Axies, represented by NFTs; each Axie has unique strengths and weaknesses, and players can adventure, battle, and breed their Axies as they play. Players earn Smooth Love Potion (SLP) crypto tokens as rewards for battling, while Axie Infinity Shard (AXS) tokens are used to vote on decisions regarding the game and its future development.

With 2.8 million daily users and a total trading volume of $3.8 billion, Axie Infinity has become one of the dominant play-to-earn games — and in countries like the Philippines and Indonesia, people are even playing Axie to support their families. “Axie scholarship” programs like that offered by Yield Guild Games have sprung up, too, enabling Axie owners to loan their NFTs out to other players.

Play-to-earn gaming is helping crypto adoption, too; according to Axie Infinity co-founder Aleksander Leonard Larsen, half of the game’s players have never used any crypto application before. However, there are costs required to play the game, and before you can start, you must purchase three Axie NFTs — each of which can cost hundreds of dollars. Larsen has acknowledged the challenges of onboarding new players to the game, saying that, “It’s really hard to begin playing Axie right now.” To address that problem, Axie plans to launch free starter Axies with limited earning potential to give new players a taste of the game.

Other play-to-earn projects are merging NFT gaming with elements of decentralized finance (DeFi). Aavegotchi, an experimental startup funded by DeFi money market Aave, enables players to stake Aave’s aTokens inside cartoon creatures represented by NFTs, meaning that each Aavegotchi generates yield on Aave.

The mainstream gaming industry has also been enticed by the prospect of NFTs and play-to-earn; French video game giant Ubisoft has already announced plans for Ubisoft Quartz, a platform that lets players earn and purchase NFTs based on the Tezos blockchain. But other publishers who’ve dipped their toes into the NFT waters have been met by a furious backlash from gamers, with S.T.A.L.K.E.R. 2 developer GSC Game World abandoning plans to include NFTs in the game following a Twitter campaign from players.

Ubisoft @Ubisoft

Introducing Ubisoft Quartz 💎 We're bringing the first energy efficient NFTs playable in a AAA game to Ghost Recon: Breakpoint! Try it in the beta from December 9 with three free cosmetic drops and learn more here: quartz.ubisoft.com

5:00 PM ∙ Dec 7, 2021

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Some gamers, already fuming at publishers’ monetization of games through “pay-to-win” models and lootboxes, regard play-to-earn as a step too far; arguing that the introduction of real-world economic models and incentives will turn gaming from an escapist pursuit into a nakedly capitalist “investotainment” sector.

But with investment from the likes of FTX and Andreesen Horowitz flooding into the play-to-earn space, it shows no signs of slowing down any time soon.

Upcoming play-to-earn games

A growing number of blockchain projects are eyeing the play-to-earn space, perhaps most notably NFT avatar series Bored Ape Yacht Club, which announced an upcoming play-to-earn game in its latest roadmap.

ther prominent NFT collection with plans for a blockchain game is The Forgotten Rune Wizard Cult, which announced that they had partnered with metaverse developer Bisonic. The project plans to use a “create-to-earn” model, in which the community will generate game lore and custom NFTs in exchange for rewards. Although the semantics differ slightly, there’s no doubt that the wizards will be gaming in a world where they can own land, collect resources, craft items, mint NFTs and effectively, help build the virtual world around them.

Forgotten Runes Wizard’s Cult @forgottenrunes

Create-to-Earn: Own Land. Collect resources. Craft items. Mint NFTs. Create your world. In the Forgotten Runiverse every item is an NFT. Every resource is a token.

7:15 PM ∙ Dec 15, 2021

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is a renowned NFT collector, writer and creator who recently tweeted that 2022 will be “the year for the blockchain gaming sector”. He’s putting his money where his mouth is, developing the play-to-earn massively multiplayer online role-playing game (MMORPG) Treeverse. Reminiscent of classic titles such as Runescape, Treeverse will enable players to exchange in-game assets as NFTs, as well as rewarding them for playing.

Currently, Treeverse is still in the public alpha phase, as the team continues to refine the in-game art, inspired by the minimalist design of titles such as Journey, The Legend of Zelda: Breath of the Wild and Valheim. Just recently Loopify dropped Timeless, a collection of 11,111 characters that will be distributed in Treeverse to NFTrees holders for free.

Treeverse (🌱) @TheTreeverse

Monthly Treeverse Update #1 🎙️ - @EndlessCloudsHQ endlessclouds.substack.com/p/monthly-tree…

endlessclouds.substack.comMonthly Treeverse Update #1Our first edition of the monthly Treeverse update. Here is some insight on game development, read below.

9:28 PM ∙ Dec 19, 2021

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Into the metaverse

Developing in parallel with play-to-earn gaming is the metaverse, a shared virtual world in which users interact as avatars, meeting up, working together — and, of course, playing games.

Blockchain, cryptocurrency and NFTs figure heavily in plans for the metaverse, with virtual objects and land parcels represented by non-fungible tokens.

Already, metaverse platforms such as The Sandbox, Decentraland, and CryptoVoxels are bringing NFTs into the shared virtual world, while mainstream companies such as Facebook (now rebranded as Meta, in a sign of its ambitions), Adidas, and Samsung have already staked out their claims in the metaverse.

Although we are in the early stages of what the metaverse could be, we are already seeing live concerts and meet-ups. Gaming is sure to follow; and with the metaverse’s promise of an interoperable world, and NFTs enabling in-game items to cross between metaverse platforms, it could act as a powerful catalyst for play-to-earn gaming.

Ultimately, what cannot be denied is the power of play to earn, where anyone, from anywhere has the chance to earn a living, simply by playing games that they enjoy.

NFTs are taking the digital world by storm, the meteoric rise has proven to be more than just an anomaly, with big brands and celebrities entering the scene. More importantly, NFTs are tickets to communities, membership tokens that open a world of utility and connection. Using the NFT as your profile picture is just one of the ways that collectors signal their status online, from Twitter, Instagram, and even Linkedin, digital identity has erupted through the use of NFTs.

However, although a collector may own the NFT on the blockchain, there has been no way of proving ownership, other than linking your Opensea page to your social media. Not everyone will necessarily do this, and therefore technically, anyone could pretend to have an NFT and use it as their profile picture, which in turn presents some issues.

There is an unspoken rule on NFT social media that if you don’t own the relevant NFT, then you shouldn’t use the image. Although there is no enforcement, you can often determine whether their profile picture is legitimate through a quick vetting of their profile and cross-checking OpenSea. Yet still, as of recently, there has been no real way of formalizing this apart from through word of mouth, where imposters are ridiculed, or excluded. This was until Twitter announced that they would be authenticating the ownership of an NFT whereby you can log on to Twitter, connect your wallet, and Twitter will verify that you are the owner of the NFTs and a checkmark appear next to your profile.

This video demonstrates how to connect your wallet to platforms such as MetaMask and Coinbase which will then allow you to choose an NFT as your profile picture. In addition to a collectibles tab that will display your portfolio of NFTs. This integration will prove to be significant for two main reasons.

(i) It will enhance the value of the NFT due to the verification.
(ii) It will bring extra layers of security, helping to prevent impersonations.

Mada Aflak @af_mada

As promised, here is the first experiment. Feedbacks and ideas are welcome :) https://t.co/TDyhibCXfG

3:58 PM ∙ Sep 29, 2021

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This announcement from Twitter demonstrates a major step towards including web 3 as well as displaying an understanding of our need for ownership, control, and identity. However, although they may be working in our best interest, the issue remains, Twitter is a centralized platform. So although they are catering to the needs of the community, they are still in complete control of our data, accounts, and our identity.

For example, if Twitter were to arbitrarily decide that they no longer wanted you to have an account, or perhaps you were mistakenly suspended, your account could be permanently lost. Clearly, this places the user in a vulnerable and powerless position where the centralized companies have the control, and not the users. Perhaps we need more ambitious visions, one school of thought being where identity is transportable and not locked down to a single entity or platform. But is this realistic?

The 10 principles of Self-Sovereign Identity

According to Christopher Allen, the path to self-sovereign identity is encompassed by 10 main principles.

1. Existence- Users must have an independent existence

2. Control- Users must control their identities

3. Access- Users must have access to their own data

4. Transparency- Systems and algorithms must be transparent.

5. Persistence- Identities must be long-lived

6. Portability- Information and services about identity must be transportable

7. Interoperability- Identities should be as widely usable as possible.

8. Consent- Users must agree to the use of their identity.

9. Minimalization- Disclosure of claims must be minimized.

10. Protection- The rights of users must be protected

Source: http://www.lifewithalacrity.com/2016/04/the-path-to-self-soverereign-identity.html

Reflecting on this list, it would appear that the blockchain is the perfect solution, where there are no gatekeepers, and we have full control over our identity, just like in the real world. Despite there being the issue of greater responsibility and error, this is mitigated by the fact that you are in the control, not a third party controlling it on your behalf.

In web 2 we use a system whereby a third party stores a bunch of data about you on a server which is used to set up an identity. You can access it via passwords, biometrics such as fingerprints, or via a key/dongle. However, the fundamental identifying information is not stored by you, it is stored by the third parties and if there is a data breach, your identity is consequently compromised.

In web 3, there is another way of access which is through the use of digital signatures. Despite it appearing like a web 2 password manager through the plug-in extension, there are underlying differences. You have both a public key, and a private key that only you hold, and only the holder of the key can sign things. When you go to a website you will be sent a random string which you verify and sign, the web server can verify that you are you given that only you can sign it. Essentially, you can take back control of your data and identity.

Changing the Status Quo and the rise of the metaverse

So why have we not transferred over to new social media platforms, and why are we still so invested in the centralized platforms that don’t really give us full control? There are a number of possible answers:

(i) New platforms are not profitable enough, this may deter people from investing in new ones.

(ii) They are too similar to current social media platforms. There have to be significant, unique changes.

(iii) For the most part we don’t want to embrace the change, we prefer the convenience and the mainstream.

There are a number of newly built NFT social media platforms that are providing the opportunity to change the status quo, take for instance Tryshowtime, desoprotocol, and nifty’s, they are certainly a step in the right direction, but for many, they prefer to stick with what they know. New models have failed to gain traction given that the opportunities and connections on these centralized platforms have already been established over years, meaning that it would be difficult to transfer them over to an entirely new, decentralized platform.

To clarify, Twitter is not a bad social media platform, in fact, it has been a fundamental contributor to the growth of the NFT community, and thousands of individuals and projects have skyrocketed as a result of the platform use. There is the question that without it, could the NFT space have grown to where it has today? The upcoming Twitter verification will only serve to bolster the NFT community even further.

However, the distinction to be made is about safety, and the longevity of identity, not whether Twitter fosters community or not. Currently, Twitter does not offer the long-term protection of your identity, and this is something to seriously consider. So, the question remains, would things be better if there was a dedicated NFT platform that takes this issue into account?

The future of social media could lie in the metaverse where we have the freedom to build a society from the ground up. Imagine the exciting possibility where your identity is verified and you can travel seamlessly between different web 3 platforms. Here your NFTs are the key to this open loop, and free travel. Moreover, identity on the blockchain is perhaps more secure than anywhere else whereby there is no opportunity for details to be forged. This reinforces the idea that decentralized platforms could be the key to allowing identity to flourish.

We are just scratching the surface, changing habits and behaviors will be difficult, and without everyone, there won’t be systematic change. However, one thing is for sure, and that is that we are still very early.

Decentralization versus centralization

Despite the growing desire to move away from centralized platforms, the distinction between both spectrums is not so simple. For many, it is argued that centralization is in fact a working mechanism, and it provides security. However, this power imbalance suggests that we are not capable of acting as individuals and that we must be always be overseen by authority. Decentralization offers a bridge away from this, putting power into the individual’s hands, and it has the potential to solve a number of fundamental economic and social problems as a result of the open, and permissionless nature.

However, some aspects of centralization are considered necessary, there needs to be customer service, and some argue there has to be some regulation, otherwise, it would truly remain the wild west. According to Chang Jia, founder of Bytom and 8btc, they say “When people choose blockchain, they will still accept more decentralized methods. People always strive for the right balance between decentralization and efficiency according to the actual situation.” So the dichotomy is not so clear cut, there are pros, and fallbacks to both ends, and perhaps a middle ground is required for efficiency.

Final thoughts

This article serves to provoke a discussion regarding the concept of digital identity, and what it could mean in a decentralized world. The notion of digital identity has rapidly evolved since the web has grown, and even today, what constitutes a self-sovereign identity is not so clear. As we spend more time online, in an increasingly shifting digital world, the need for control over our identity is important. Just like ownership of NFTs, proof, and guaranteed protection of your online identity will be key going forwards.

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In fact, when you zoom in, the NFT space probably doesn’t make a whole lot of sense. It can seem unfair, unreasonable, and in many cases, it boils down to the luck of the draw. Hype is paramount to success irrespective of whether the art is good or not. An NFT project will almost always do well if there is hype behind it. Contrastingly, there could be an NFT project that has spent a significant amount of time building the art and utility, and yet still, they would fall on deaf ears. But, hype alone cannot sustain a project in the long term, this has been made evident by a number of celebrity cash grabs, and even high-profile avatar drops, where the hype was blown out of proportion and became too much to sustain. Consequently, it irreversibly damaged the collection, a snowball of flipping begins and a castle quickly crumbles, almost as quick as it took off. I discuss more of this in a previous article.

Although you can claim to know exactly how the market works, what project is the next big thing, who to follow, and what to invest in, the truth is that at this developmental stage the only certainty is that nothing is certain in the NFT space. New projects launching don’t all have the hype or community behind it yet. What’s trendy this week may not have existed last week and there will be a new flavour everyone’s talking about next week. There are certain trends you can follow, for example, 2021 began with art 1/1s on Foundation, avatar collections flourished during NFT summer, and as 2022 approaches, Play-to-Earn (p2e) blockchain games are exploding in popularity.

That being said, a lot of the NFT space is supported by just opinion, with credible knowledge and research still very much undetermined. Take for instance the now-iconic and culturally significant Bored Ape Yacht Club (BAYC) collection. For perspective, the collection dropped in May, a mere 7 months ago. In the real world, you would not be considered an expert with less than a year’s experience in any field, so for people to claim to be an expert at such an early stage is not so plausible. For the vast majority, we are simply figuring it out together.

Zeneca_33 🍌 @Zeneca_33

I am not an OG in this space, I am not an expert. I joined early this year (after dabbling in 2016-2017), and have largely been figuring it out along with the rest of us newcomers. There are people far smarter than me, and with far more experience than me, in every respect. Just

5:36 PM ∙ Dec 31, 2021

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So if there is no secret to success, why is it that so many of those around us are still able to be successful? It may be because they follow frameworks, certain strategies that you can take from outside, and implement into the NFT space. Stock trading experience is something many have drawn upon as they entered the NFT world, but for the most part, it generally boils down to luck, having an understanding of community, and making rational decisions. If I have learned anything since entering the space in July, it would be to make your own informed decisions in a timely manner. This is of course easier said than done sometimes. But how can you do this?

Making decisions

Take your time. Your research of a project should extend far beyond the basis of whether it is selling or not. Who are the community, who are the team, what are they offering, what is their utility, and what is their plan? It is important that you make informed decisions, as although you can make quick flips when the market is being driven by FOMO, it is the clear decisions that will help you in the long term.

Be inquisitive, be curious and be hesitant. Not only will this help you learn more about the project, it will help you refrain from minting projects every time they launch. Set yourself criteria, does the project meet your required expectations? It will take a lot of will to set boundaries, especially in a space as fluid and fast-moving as NFTs, but having control is important. There is no rush, do not give into hype. Remember that for every good project you may miss taking this approach, there will probably be 5 more.

The NFT space is 24/7. It is impossible to keep track of everything, even if you tried. So don’t. Engage with the community and ask for support and insight. Ensure that you maintain a healthy balance between your work and your rest. NFTs are addictive. Like updates on social media, you’re tempted to scroll your days away. There is no other way to put it.

On trading

From the community to sales, to collecting, to Twitter engagement, there is a constant flow of dopamine, both extreme highs and extreme lows. Price volatility is another constant, with massive swings in value and price floors made of lava that often swing both ways resulting in gains and losses in multiples not percentages. This isn’t normal by any stretch of the imagination, and the heightened senses of being in such an unpredictable space can quickly take its toll, for the good and bad. Consequently, it can also be an issue when deciding to sell, when to take profits, or when to accept that a project won’t be revived. An integral part to growth is setting boundaries for yourself.

Again there is no secret to trading NFTs. Is there a right time to enter into or exit a project? If your decision-making is impulsive then you could see short term success, but the likelihood of long term success is lower. But if it’s based on research, information, insight, data, then you’re doing it right. Never invest more than you are willing to lose. You may consider selling if the NFT fails to bring you happiness, if it brings you stress, or if you are unable to keep track of it. It is important to note that everyone’s strategy will differ to your own. Time, size of the investment, risk appetite, etc will almost always be unique to each individual and specific transaction. Consolidating your ideas, your portfolio, and overall strategy should be a consideration.

Recharging

Irrespective of strategy, it pays to recharge your batteries often. Especially in these COVID times, ensuring you take time-off is critical and necessary. It can be a struggle to step back, especially when the space moves so fast, but burnout is a real issue and it can be detrimental to both your work, and enjoyment of the space if not addressed. It’s something I’ve had to force myself to deal with as I’ve taken on more work and responsibility running a Discord, Twitter, creating, interacting, writing, following and generally keeping up with the space all collectively 24x7 takes up a significant amount my time, focus and patience. My screen-time would be shocking!!

What we are building with TBAC requires full power. I know I don’t want to miss out on this opportunity and I am committed entirely, but it’s equally important to remember that breaks are necessary and this is something I will consider doing more frequently as we kick-off 2022. The space isn’t going anywhere and neither are the incredible opportunities.

So stay informed, stay humble, stay focused, rest and recalibrate, and let’s get after it together.

Disclaimer, these are my opinions and they do not constitute formal financial advise.

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This time last year, Clubhouse rooms were thriving, artists were learning about the new tech called NFTs that flooded their Twitter timelines, and nobody was prepared or could have predicted what would follow next.

Over the past 12 months, the space has endured parabolic growth, and it has been more than anyone could have imagined. From 1/1 auctions on Foundation to the PFP collection craze, and now more sophisticated NFTs that draw on utility for the collectors, NFTs have developed significantly across the board.

NFTs have taken over the tech world, so much so that it was crowned word of the year by The Collins Dictionary, further suggesting it is a presence that cannot be ignored.

Despite the stigma and skepticism expressed by many, it has succeeded in capturing the attention of mainstream brands and businesses, all of whom are investing to try and understand more about how the space works and how they can be involved.

From an Adidas partnership with the BAYC, a Pepsi NFT, to Nike acquiring RTFKT studios, corporate experimentation has slowly evolved to conviction, demonstrating that NFTs are not simply just a bubble.

To illustrate further, celebrities have joined the action with many prominent names investing in NFT projects such as Jimmy Fallon, Steph Curry, DJ Khaled, Paris Hilton, and Post Malone to name a few.

There has been a fair share of controversy, drama, and FUD, but equally, there have been serious signs of potential, positivity, and kindness, all of which are helping to shape the space every day.

But what is in store for the year ahead? In this article, we discuss some ideas and thoughts about NFTs in 2022!

NFTs will add more utility

In the past year, NFT collections have sold out simply because they were a 10,000 profile picture collection. However, as the months went by and we have learned more, for many, apeing into every collectible project has proven unsustainable.

Hype can only take a collection so far and the buzzword for the moment is utility. For projects to succeed in the long term, there must be something that defines them, something that makes them unique, and they have to provide value to the collector that extends much further than the art or name.

Whether it be through tokens, airdrops, access to the metaverse, or commercial rights, collections are having to think outside of the box to attract collectors, in hopes of selling out. Subsequently, we should expect to see even more utility.

More brands will enter the NFT Space

In the latter half of 2021, we began to see more and more brands take an active interest in NFTs, especially given the volume of sales reaching $9 billion in 2021, the possibilities are endless.

Subsequently, powerhouse companies such as Nike and Adidas emerged, Nike acquired trailblazers RTFKT studios, and Adidas partnered with a number of NFT companies including BAYC, Punks comic, and Coinbase.

Evidently, these are just the stepping stones, brands will continue to expand their presence in the NFT space and metaverse as 2022 unfolds and we should certainly expect more eyes on the scene.

DAOs will continue to grow

DAOs fundamentally challenge traditional business start-ups in the sense that they are public, transparent, and decentralized, no longer will there be equity, but instead, tokens. Arguably, they are more trustworthy and enable fair distribution of wealth in real-time.

As the year has progressed, DAOs have become more important with many collections adding the establishment of a DAO to their roadmap, allowing collectors to have an active say in the direction of the project.

From votes to raising money and community growth, DAOs are only going to expand in 2022. Even in the face of uncertainty regarding regulations and legal standards, we have seen potential with Wyoming passing a law that legally recognizes DAOs. They are gaining steam with their decentralized nature and based on recent momentum we will surely see more updates next year.

Tokens will be airdropped

You can be rewarded by simply participating in the space, this was exemplified through the ENS domain airdrop, and the more recent $SOS token airdrop, which both rewarded early users and supporters with tokens.

Similarly, the BAYC are planning on dropping a token that will reward holders, while gm is dropping a $gm token which will be distributed and reflective of how many times you have engaged with the gm culture on Twitter.

Clearly, these tokens reinforce the fundamental requirement to engage in the space. In 2022, we should expect more token airdrops, and what we have seen so far suggests that you should get involved in every way you can!

More NFT/Blockchain Games

Games have had a renaissance under NFTs with blockchain technology opening up new opportunities for gamers to be compensated for their time. With the foundations of play to earn starting under Crypto Kitties in 2017, the latter half of 2021 has seen a number of NFT projects add play-to-earn games to their roadmap.

Namely the BAYC, which has announced a partnership with Animoca Brands and is expected to launch in 2022. Furthermore, the NFT collection The Forgotten Rune Wizards announced their plans for a play-to-earn game, and following the announcement, their floor price more than doubled in less than 24 hours.

Renowned NFT persona Loopify has also preached the potential and possibilities for blockchain gaming with his own NFT game, Treeverse. Clearly, gamification is an avenue that NFT projects will continue to pursue in 2022.

IRL events will come

The biggest event of the year occurred in November during the week-long NYC takeover which also coaligned with the BAYC’s Ape Fest. Thousands of NFT enthusiasts traveled to the city and were able to put a face to their online persona, something that at large had not been done since many joined the space.

It was a chance to bridge the digital with reality and it proved to be extremely popular. The BAYC hosted a number of events including a warehouse party that saw live performances from The Strokes, Lil Baby, Beck, Chris Rock, Aziz Ansari, and Questlove.

Not only did they host a concert with some of the biggest names, but they also hired a real-life yacht that ape holders could attend which featured even more live music and partying.

With the events being major successes, other NFT collections have begun adding IRL events to their own roadmaps, and thus we should expect to see further real-life events in 2022.

NFTs will be more innovative

The NFT space has skyrocketed in volume with billions entering since the start of the year. But interestingly, there has not been a great degree of diversity with PFPs, 1/1s, and generative art all leading the way in 2021.

For many collections, it has become increasingly more difficult to capture attention due to the sheer volume of similarity in the market, therefore more innovative art and ideas are required.

Recently a collection was launched named JPGpeople, and it allowed collectors to participate in the generation of the art through typing a phrase, which would also be a part of the NFT.

It provoked thought, it sparked creativity and above all else, it was something new. In 2022, we should expect to see more creative ideas that diverge from the standard NFTs that simply require you to click mint.

Things are going to change

This may seem fairly obvious, but it is also fundamentally true. In the past 12 months, a lot has changed, whether it be the trends, the price of Ethereum, or the influx of brands.

Nobody could have predicted where NFTs would stand in 12 months’ time. However, now that we are here, and we can look back on what changed, and what is expected ahead, we can surely say that 2022 will be exciting for NFTs.

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It is no secret that nonfungible tokens (NFTs) are still a niche subject. Despite their rapid surge in popularity during 2021, there is still a significant percentage of people who do not know what an NFT is. Reflecting on the graph below, it is evident that a lot of work needs to be done for NFTs to truly hit the mainstream.

However, it is clear from recent months that there is potential for this to happen, and there have been many signs of awareness and adoption which I will discuss in this article.

Celebrities

Celebrities have been a key proponent in the rise of NFTs. Initially, the NFT space began with artists, creators and traders, all of whom set the foundations for what the NFT space is today. Since then, notable figures have also entered the space, whether it be via creating their own projects or simply collecting. The influx of celebrities in recent months has been extremely valuable in terms of expanding the reach of NFTs but, in the NFT space, everyone starts from square one and value does not arise from influence. For many celebrities that created NFT collections without considering the long term, their NFTs have failed to sustain value, therefore reinforcing this point.

There is a difference between celebrities that have provided value and those who have sought to profit from the space. Take, for example, Pharrell Williams, Snoop Dogg, Jimmy Fallon, Tom Brady, Paris Hilton, Post Malone, The Weeknd, Stephen Curry, Lil Baby, Timbaland and DJ Khaled. They are all celebrities who have bought into collections and displayed them as their profile pictures.

These celebrities have certainly been a major catalyst for the growth of the NFT space, and as the number of celebrities in the space snowballs, there is no doubt that their influence will help to cement the crypto culture into the mainstream. But, most importantly, they are joining us — they are not changing the dynamics or making the rules. The NFT space is a collaborative effort, and we are building value together.

Related: Celebrities are embracing NFTs in a big way

Adidas

Perhaps the most significant mainstream bridge to date has been the Adidas partnership with Bored Ape Yacht Club, Gmoney, and PUNKS Comics. In a move that shook the NFT world with excitement, Adidas launched a new Twitter account, Adidas Originals, with these new partners to discuss their plans.

In this space, they announced a number of important things — firstly, their plans for entering the Metaverse, a digital world that will allow users to interact virtually in the future. To illustrate their idea, they released a trailer that depicts Adidas’ Bored Ape and representations of its new partners seamlessly traveling through the sky and into the Metaverse.

Related: Just buy it: Nike wants to bring sneakerheads into the Metaverse

The Adidas Originals account also changed its profile picture to the newly purchased Bored Ape Yacht Club NFT #8774, a very specific blue ape they named Indigo Herz, with heart glasses and a fisherman’s cap, would be the face of its brand in the Metaverse.

Why is this so groundbreaking?

Thus far, the NFT space has been comprised of individuals. Whether it be regular traders, creators or even celebrities, it has been the individuals who have pushed the space forward. Now enter Adidas, a traditional and mainstream brand that has four million Twitter followers and 26 million followers on Instagram. The presence of this one brand has the power to bring more eyes to the space than all of the individuals combined, thus spurring the growth of NFTs significantly.

Related: NFTs as micro-social networks: The path to crypto adoption

To further this vision, Adidas also partnered with Coinbase, the leading cryptocurrency exchange platform. Additionally, it also partnered with The Sandbox, one of the most popular metaverse games. In a tweet, Adidas showcased its very own Sandbox plot, a piece of digital land which officially cements its position inside this metaverse.

Ubisoft

Ubisoft was the next big company to follow the Web3 route this week when it announced that Ubisoft Quartz will be available on the Tezos blockchain. The premise of the platform is that users will be able to buy and sell in-game items named “digits” using cryptocurrencies. This is significant because it will grant players ownership of their in-game items, which within regular games would only be available within and be dependent upon those games’ own individual ecosystems, as opposed to the blockchain, which allows for ownership completely independent of a game world.

Why is this so significant?

Ubisoft is ranked among the top 25 largest gaming companies with over $5.8 billion in capital. If this is just the first step into NFTs, it is certainly capable of something much more complex in the future. Comparable to Adidas and other big brands that have delved into the space, they are each succeeding in bringing more attention to the prospect of NFTs as a technology that is taken seriously.

Despite the entry of Ubisoft marking a huge step towards bringing NFTs to the mainstream, their announcement was not met without criticism. In fact, their YouTube video received over 20,000 dislikes in the first hour, and the company received resounding backlash across their social media, forcing it to delist the video.

When scoping the comments, it is evident that the hate stems from a number of sources where users:

• Dislike the company irrespective of NFTs.

• Dislike the payments; the cost may be out of reach for many.

• Dislike the energy consumption that NFTs require.

• Dislike NFTs in general.

This reflection certainly reaffirms the fact that NFTs require a lot of work before being accepted and adopted by a wider mainstream audience. But it is not just individuals — some of the leading game platforms, such as Steam, have banned blockchain games from their store completely. It remains to be seen whether Ubisoft will continue with its plans. However, its initial conviction has also highlighted the fact that NFTs are growing fast, especially if a billion dollar company is considering adopting them!

But why are NFTs so controversial, and how is this preventing them from greater mainstream adoption?

What is preventing NFTs from entering the mainstream and what improvements can be made?

Stigma and a lack of trust are two of the most fundamental reasons why NFTs have been prevented from entering the mainstream. To an extent, some of the stigmas are valid when considering those that have fallen victim to rug pulls. Furthermore, many have been left vulnerable to the threat of scams and hacks that have grown increasingly. You have also probably heard that “NFTs are a scam,” “NFTs are for money laundering,” and “NFTs are a pyramid scheme.” But this is not representative of the entire picture.

Indeed, there are bad players in the space that engage in this behavior, much like how, in real life, there are scammers too. But this does not account for the entire space. Furthermore, your NFTs can be protected entirely by using a hardware wallet, also known as a cold wallet. It is stored on the blockchain and only you have the private key to access it.

To prevent scams further, there undoubtedly has to be better modes of communication introduced for NFT users and safer platforms that ensure the safety of those that use them. Although rug pulls are an issue, they do not occur across the entire space. There are still serious and legitimate NFT projects that are trustworthy. Rather than forcing NFTs into a broader label such as a “scam,” what is required is a greater understanding of the teams behind them, and more research is needed before making investments.

Related: Nonfungible tokens: How to get started using NFTs

Another barrier to mainstream adoption is that, if you are new to the space, setting up a Coinbase account and MetaMask wallet can be extremely confusing if you do not know where to start. There are fees, transfers and difficulties involved at every step of the way, making this a serious barrier for entry. For the average person, this will deter them from even considering entering the space. So, if NFTs are to appeal to the mainstream, there has to be a simpler process of getting started.

Support is needed. You cannot be expected to create a wallet, begin trading and make transfers simply on your own unless, of course, you are extremely committed. It is a magnificent task for anyone and, therefore, we need guides, helping hands and ways of supporting people through the process. The intricacies of getting started are a serious barrier for entry and, although guides are helpful, something more comprehensive is needed that will make life easier for everyone involved. Until then, it is difficult to say when NFTs will achieve mainstream adoption.

Moving forward

NFTs have a long way to go before they’re adopted by the mainstream. However, as this article outlines, there are already a number of important indications that suggest they will in the future. Whether it be celebrities, big brands or corporations, more eyes will come to the space and, as the timing aligns and consumers recognise this, a shift in thought could take place. But, before this, a lot of work needs to be done in regards to education and accessibility.

Related: Decentralization vs. centralization: Where does the future lie? Experts answer

There are clearly pros and cons to both regulation and decentralization. Centralized platforms allow for frameworks and safety. On the contrary, decentralization offers innovation and free reign. But on the downside, regulations prevent ownership and free reign, while decentralization enables the breeding of scammers and people acting in bad faith.

What we do know is that the NFT is a new technology still in its experimental stages. But already we are seeing attraction from mainstream companies and brands. The adoption of NFTs is inevitable, whether it be slow or fast.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

During the prime days of the NFT bull run in 2021, selling a 1/1 art piece or a 10,000 collection was fundamentally more easy than it is today. Why? It was early and every new project that launched was another chance to potentially join the next BAYC or CryptoPunks.

But since then, demand has changed and after many collectors have watched their NFTs plummet, they have realized that utility is required for projects to last in the long term.

Furthermore, where marketing was seemingly minimal in the early days, today it is has become a contributing proponent for the success and take-off of a project. In this article, we will outline the importance of utility, in addition to the ways in which projects and brands utilize marketing in the space.

Interestingly, for NFTs, there is no clear definition of what utility is, often it is the success of one project that defines what utility is, whereby other projects follow and mirror the said ‘utility’.

There is certainly a ubiquitous buzz surrounding the word and in many cases, the utility that is promised is often not utility at all with many collectors accepting that a lot of projects will eventually go to 0. That being said, there are cases of real utility, where collections offer something pertinently different from the rest.

Utility

The Bored Ape Yacht Club created by Yuga Labs is the staple NFT collection, they have hit the mainstream and brought early minters exponential success. However, initially, their utility was very minimal when considering what is required to take a project off today.

In addition to this, it took over a week for the project to completely sell out. They first dropped the bathroom, a collaborative art space for token holders to contribute for fun.

However, serious value began to accrue through their airdrops which included the Bored ape kennel club as well as the Mutant ape yacht club. Extending the ape universe enabled new members to join the club while simultaneously sustaining the value of the collection.

With their roadmap 2.0, they have furthered the utility of holding a BAYC significantly. With plans for a DAO, a game, real-life events, a BAYC token, and more, they are presenting a number of different unique utilities that will only see the value of bored apes increase over time even more.

The Bored Ape Yacht Club did not need to hire professional marketers, nor did they have to implement a complex marketing campaign. Instead, they are an example of where a die-hard community took the project into their own hands.

Their community has extended the ecosystem by leveraging their IP and creating sub-collections such as beverage brands, streetwear, and animated stories, all of which have contributed to significant growth within the project.

However, this is limited to only some exceptional collections where everything aligns. On the contrary, for many projects, a lot more is required before they are able to fully bloom in the NFT space.

Marketing

For many projects, creating an NFT collection is almost like creating a mini start-up where small groups of individuals work as a team to launch, create, communicate and deliver the NFT. In the case of a small team, the juggling of each of these roles is a tough task, especially when considering the volume of projects that are competing in the NFT world.

This is where marketing proves key, and the hype is just as important as any of the factors presented above. Irrespective of the art, or team, if a project is underpinned by hype, there is a high likelihood that they will succeed at drop, but this is not to say it will in the long term.

Take for instance Mekaverse, despite it being one of the most hyped projects for months, it quickly depleted in value with concerns about the artwork and insider trading. Evidently, what makes a good NFT project is a balance between each of these factors.

A number of elements are required for marketing to be successful, firstly you need the tools. Twitter, Discord, and a Website are all required to plant the seeds for a thriving community, and once a community emerges, a community manager is required to glue all of the elements together.

But it is not just the macro level that is required, the micro is perhaps even more important. What do I mean by this? Mainstream marketing will not work, native web 3 users can see right through it, you have to be engaged in the culture and understanding of the day-to-day NFT world.

Simply entering the space with no prior experience of the culture will only lead to doubt from the community, it is a very niche target audience that you are pitching to and if it doesn’t seem natural, it will quickly be found out.

Take for example the corporate brands that are now transitioning into the NFT space, they are not just marketing NFTs, they are marketing themselves.

Despite their large followings, they have not demonstrated what many consider the correct approach to building community. The community is labeling their efforts to learn the lingo as ‘cringe’ and some have gone as far as to say that it is disrespectful.

MaxNorris.eth @maxnorris__

This officially marks the top. Crypto coin, Mongoose coin, NFTs, Schmenefties. Doesn’t matter. It’s all down from here.

12:12 AM ∙ Dec 10, 2021

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What is required is authentic learning, immersion, and practice, a solid understanding of the space and genuine engagement is key. These are the first steps to successful marketing and hence why many mainstream brands are employing native NFT users to their teams.

The pitfall for many corporate brands entering the space is industry knowledge.

White Castle

Let’s consider White Castle, a prominent American hamburger chain restaurant. Just recently they announced their new ENS domain name “whitecastleofficial.eth”, they changed their Twitter profile to a Seahams NFT and have also collaborated with Che-Yu Wu, a generative art producer to bring a new collection to doodle labs.

WhiteCastleOfficial.eth @WhiteCastle

Enter The Sliderverse 🍔 Announcing our collaboration with the legendary Sea Ham artist @cheyuwu345 to bring a new collection to @doodlelabs_io. Are you in, anon?

9:35 PM ∙ Dec 10, 2021

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Furthermore, White Castle has shown an understanding of the space, they have presented to their audience the NFTs that they own and they are collaborating with web3 natives that are well respected in the community. All of which demonstrate their intent to immerse into the community the right way, as opposed to simply entering and hoping to market themselves

Artnet

Today, the biggest digital art institution, Artnet granted prominent NFT community member Andrew Wang the opportunity to take over their Twitter page and take a deep dive on all things NFTs. In a landmark move, they changed their profile picture to his iconic upside-down cool cat marking the NFT takeover.

Artnet @artnet

#NewProfilePic

8:02 PM ∙ Dec 11, 2021

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During the 3 hour period, Andrew shared a number of things to their audience including his own NFT story, his thoughts on the cooperation between traditional and digital art, as well as listing some of his favorite creators in the NFT space.

The takeover was representative of something more than promotion, instead, it demonstrated a moment in which the traditional world embraced a digital and niche culture, putting trust into the hand of a creator, and showcasing the event to their 1.9 million followers.

Both of these cases illustrate two major corporate giants that have taken the time to understand the space, and educate their audience rather than entering the space simply for the sake of profiting, and this is the key difference.

Agencies

The extent to which marketing has become increasingly more important can be highlighted through the growth of agencies, platforms in which teams offer services to NFT projects to assist with their launch, marketing, and development. One notable example is SHILLR, a one-stop consulting and marketing agency.

The team is comprised of well-known and respected members of the NFT community including My Rugema, Bernardo Cafe, Winny, Funghibull, ALT.EGO, and Takesprofit. Many of them hold Punks and have extensive experience in the space, both the good and bad making them very well-trusted community members.

winny.eth @winnynft

We started @shillrxyz just over 4 months ago, I’m so grateful for the team of giga-brains that I get to work with everyday. This week alone has defined that quite simply… SMI and will continue to MI I love you guys

8:26 PM ∙ Nov 6, 2021

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Since they were established just 5 months ago, they have worked with a number of artists and projects, assisting them with all of their needs. Whether this is help with launching, the creative direction, webpage development, marketing, or consultancy, they are bringing artists and creators to the forefront of the community.

Furthermore, SHILLR has participated in a number of events from organizing the NYC NFT treasure hunt with POAP, attending the NFT London conference, and driving the SHILLR van around NYC and Miami, they have already begun to bridge the digital with reality in a number of cases.

Claire Silver🌸 @ClaireSilver12

Self portrait "a feeling I can't put my finger on" in front of the @nytimes, 2021 is a WILD year. Thank you to @shillrxyz and @funghibull for the incredible initiative, watch for this van to see other amazing artists work!!! opensea.io/assets/0x495f9…

5:03 PM ∙ Nov 2, 2021

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SHILLR is an example of the changing times in the NFT space, as more people enter the world, and mainstream adoption becomes more of a reality, there needs to be something in place to enable the transition from web2 to web3, and SHILLR is doing just that.

What’s more, the team is heavily invested in the NFT space, so much so that they invest their profits back into the ecosystem through the purchasing of more NFTs. Again this reinforces their stance as a reputable and trusted service.

Final Thoughts

It is no question that NFTs have become increasingly more difficult to sell. In a competitive climate, both utility and marketing serve as important components if a project is to succeed.

Furthermore, for success, projects require a background in the space, experience, and more than a surface-level understanding. In recent weeks the corporate brands that have entered the space have demonstrated mixed approaches, some showing consideration for the space, and others not entirely. Nonetheless, the signs for potential mainstream adoption are becoming more evident.

Finally, as the space grows and the market becomes more competitive, we are seeing the introduction of agencies, helping to support creators with their NFT projects and again this is another indication of the growth of NFTs in the past year alone.

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Since their creation in April, the value of apes has skyrocketed from a 0.08 mint price to a floor that is now above 50 ETH, with some apes even reaching valuations of millions. This week, NFT photographer John Knopf sold his ape for 347 ETH after holding the NFT for over 8 months, clearly illustrating the extent to which apes have exploded in value. So much so that high profile celebrities such as Jimmy Fallon and DJ Khaled have aped in, as well as a recent partnership with corporate giant Adidas. Evidently, the BAYC has the capacity to reach a mainstream audience, much further than the crypto and NFT world.

Perhaps of most value, and what sets the BAYC aside from most other projects is its stance on licensing and commercial rights. The BAYC grants its holders complete access to use and monetize their NFTs. Subsequently, it has enabled the project to flourish, where the community has taken the illustrations into their own hands and extended the ecosystem through their own, derivative sub-projects. Essentially, holding a bored ape allows you to create a business around your asset, whether or not you choose to do so, it has seen the project grow extensively.

Since April, a number of projects have emerged, taking full advantage of their commercial rights to the apes that they own. In this article, we will discuss a number of prominent derivative collections and ideas that have stemmed directly from the BAYC.

AIP

APE-IN productions is an artist-owned entertainment company co-founded by grammy winner Timbaland, and a team of BAYC members. The brand is set to amplify, launch, and promote Bored Apes as successful music artists in the metaverse and so far they have released two tracks. The hip-hop group named TheZoo was the first to have their song released as an NFT with Apesh!t and following this, the second track “Take Off”, was released. AIP has future plans for exciting collaborations and bringing token holders opportunities to participate at the highest levels of creative media.

APE-IN PRODUCTIONS 👑🐵🎵🎶 @ApeInProd

Announcing Ape-In Productions 🐵🎵variety.com/2021/digital/n…

variety.comTimbaland Unites With Bored Ape Yacht Club Owners to Form Artist-Owned Ape-In ProductionsGrammy-winning producer and songwriter Timbaland has announced his latest venture and partnership, Ape-In Productions (AIP) — an entertainment company and virtual community that will launch and promote Bored Apes as successful music artists in the metaverse. The Bored Ape Yacht Club (BAYC) phenomena…

9:17 PM ∙ Nov 12, 2021

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TBAC

The Boring Ape Chronicles is a collection created by renowned NFT artist Timpers, and recently joined by his twin brother Insight. The project is comprised of 6 interconnected artworks that each depict a pixelated and vibrant world. Additionally, there are 6 chapters of lore that amount to over 5000 words, further bringing the adventure to life.

The story revolves around the bored apes who embark on a quest in search of the sacred artifact, the diamond fleece. Across the 6 episodes, they encounter danger, magic and suspenseful locations, all of which are brought to life by the rich lore. The collection is limited to just 100 editions in the first series making the NFTs scarce and sought after, but the journey does not end there.

Holders of the collection are set to be rewarded with the diamond fleece NFT, a 3D model of the sacred artifact, a TBAC merch baseball cap, a collectors edition eBook, an animated production, a series 2 reserve, and they will also gain exclusive access to Timpers genesis pfp project Chimpers, a collection of 100 1/1 avatars, and the first pfp project he has worked on outside of the prominent pixel art project Nouns.

The Boring Ape Chronicles @TBAChronicles

What does holding all 6 episodes of the chronicles grant you access to? A lot... Be ready. 🦍💎👀

8:15 PM ∙ Dec 9, 2021

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Myth division

Myth division is a company that creates animations, comics, film, and television with 20+ years of experience in Hollywood and now they are invested in BAYC & NFTs. With a team that has helped manage multi-billion dollar IP franchises before, they are one of the most experienced creative teams to utilize the BAYC commerical rights. The first series of the comic reflects on the origin story of Ape #5636 and documents the journey of the American Ape as he searches for the Bored Ape Yacht Club.

Myth Division @MythDivision

Those Bored Ape Seeks Yacht Club #1 Tokens are ready to be revealed. Just head to Opensea and smash the refresh metadata button!! Opensea.io/collection/bor…

3:13 AM ∙ Dec 8, 2021

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Jenkins the Valet: The Writer’s Room

The Writer’s Room is one of the most exciting experimentations with the ape IP that takes 6,942 non-fungible tokens, each of which gives holders voting rights and acknowledgment in a generative story book. Apes and mutants can choose to license their NFTs in the book in return for a continuous fee, generated from the revenue of the book.

There are different tiers of voting power that holders can enter, a valet ticket that gives 5 votes, a yacht key that gives 10 votes, a valet stand that gives 50 votes, and a yacht that gives 215 votes. Across these levels, the integration of your ape also differs starting from being acknowledged in the book, featuring in the game, featuring as an extra, and lastly featuring as a character in the book.

Subsequently, all of these factors present holders with a unique position to contribute to the creation process of the book, taking them from a consumer to a contributor.

The first iteration of Jenkins the Valet will be a full-length fictional story written by award-winning author Neil Strauss, but there are plans for expansion across a multitude of mediums in the near future.

Apesthetics

Apesthetics is one of the first luxury, streetwear fashion brands that combine the physical with digital in their products. Founded by the ape connaisseur Dfarmer, he has invested in a vast collection of apes to support his brand. The genesis cheetah gang drop was comprised of 250 hoodies and sold out within minutes, since then his series has continued with Pimp Gang, the Bowler Gang and many more are on the way. Every clothing item comes with a Kong Silo chip and is therefore equipped with its own unique smart contract sewn into the fabric. Like NFTs, this enables its owners to verify the product’s authenticity, an exciting crossroads between tech and merchandise.

Apesthetics @wearapesthetics

The @wearapesthetics massive drop we have coming for the holidays will blow your mind. 3 new items launching with a whole new online store for a proper “maison” experience. @TheMetaFactory is pulling all the stops with us. @Richenks bringing the fire🔥 Are you ready fam?!?

7:42 PM ∙ Dec 9, 2021

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The Red Ape Family

From a pfp to an animated comedy sitcom, The Red Ape Family is the first-ever NFT that takes bored apes into a sitcom series where 4 red apes, a dog, and a lazy lion embark on a mission to Mars. The team is comprised of entrepreneurs and creatives as well as executive producer 2 Chainz, a renowned American rapper. Additionally, they offer a number of benefits to their token holders including distributing streaming revenue to holders, opportunities to win NFTs, the chance to feature your ape, merch, and airdops.

The Red Ape Family 🎬 @TheRedApeFamily

🚨 Public mint of Episode 2 of @TheRedApeFamily is NOW OPEN 🔥 ALL Episode 1 tokens were SOLD OUT before the episode drop and a third of Ep2 tokens are gone (presale)! 👉👉 GET YOUR TOKEN HERE: theredapefamily.com 🚀

3:36 PM ∙ Dec 5, 2021

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SurrealApes

Surreal Apes are a new machine-generated, BAYC derivate collection created by well-known Twitter banner creator and ape holder Gerry, as well as FancyRats, Dejen, & Asherah. Their collection launched just 3 days ago and has already gained traction in the ape community with the giveaway transforming 10 lucky apes into surreal apes. Burning a Mint-Pass generates a Surreal Ape and Mint-Passes will be released in Limited Editions 100/100.

Bored Ape Comic

The Bored Ape Comic was one of the first BAYC derivate collections to hit the blockchain with their first issue comprised of 10,000 copies, a chromium, gold, and silver set of editions that all sold out. Since then they have created a radio show, held giveaways, and are currently in the process of rebranding as well as creating their second issue ready for the metaverse!

The Bored Ape Comic @boredApeCOMIC

We're excited to share a new BAC trailer to kick-off our brand evolution. This video will live on the website & is used for promotion purposes. We're also feverishly working on the BAC 2.0 website that you'll get a sneak preview of on Wednesday. You're gonna love it! #BAYC

4:28 PM ∙ Dec 7, 2021

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Bored Wine Co

Bored Wine Co is the first wine brand that utilizes the Bored Ape illustrations in its beverage product. The NFT is a digital image backed by real physical wines stored in a bonded warehouse in London, UK. Additionally, the brand is developing a wearable based on the wine bottle design that can be displayed in the metaverse. Currently, they are releasing a rare mutant vintage into the world, where holders can mutate their wine NFT!

Yawn of the apes

YOTA is a series of animated shorts inspired by the BAYC and created by ape member Hunter_NFT. They have acquired OG status as one of the earliest Bored Ape-inspired collections and since their launch in June, they have produced 3 episodes on Youtube and continue to grow their series!

YAWN OF THE APES 🦧 @YAWN_ofthe_APES

we are.. YAWN OF THE APES 🦧 an animated series inspired by @BoredApeYC + @adultswim created by @Hunter_NFT + @ed_motions APISODE ONE is launching this Wednesday, June 30th (see profile for link to YouTube channel) EXACT TIME TO BE ANNOUNCED #YOTA #BAYC #BAKC

5:59 PM ∙ Jun 28, 2021

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Bored Vibes

Created by renowned Bored ape collector and Dreamworks animator PaperD, Bored Vibes is one of his most popular derivative collections on OpenSea that combines both Bored apes and crypto toadz by supergremplin. The art is an example of what can be achieved when collections open up their IP, and since then, his derivative NFTs have become popular amongst the BAYC community.

There are a number of collections in the BAYC ecosystem that currently exist, and they may not have been mentioned in this article. If you have any honorable mentions, make sure to comment them down below!

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In this article, I will outline a number of ways that you can participate in the NFT space. With the right mindset, motivation, and support, we can do anything with NFTs, most importantly, you can do anything.

What are NFTs and web 3.0?

An NFT is a non-fungible token, and it can be represented via images, videos, audio, or GIFS. But why are they significant? They prove ownership of an asset through the blockchain, a decentralized data storage that tracks every single transaction and owner of the NFT. Furthermore, they have their own unique token ID, meaning that they cannot be replicated, and they cannot be forged, this is also the reason that NFTs can accrue such value, due to their non-fungible nature, and scarcity.

NFTs are also membership tokens, they bridge the digital with reality with behind the scene offers such as meet and greets, VIP experiences and events, exclusive to the NFT owners. Evidently, NFTs are much more than lines of code, they are vehicles for transforming the web and we are already seeing this through the utility that they offer.

NFTs are the cornerstone of web 3.0, they are the next iteration of the digital age and are providing us with truth, information and value through digital assets. How? This is occurring via the blockchain, and decentralization, two components that have been absent from web 2.0.

How to approach the space.

The first mistake that many newcomers make is that they think participating in the NFT space means minting every project that has hype behind it. This is not entirely true, and in actual fact, you do not need to mint a single NFT to be a part of the NFT community. Purchasing NFTs is certainly a way to participate, but of course, it is not the defining factor.

When I first entered the space in August, I was stuck. I wanted to contribute in some way but I was unsure how to. I was no artist, I had no developing background but I couldn't help but gravitate to the endearing community. It wasn’t until I read an article about NFTs that I had the epiphany, as an English language graduate I wanted to write, and this was the perfect opportunity to cover a space that lacked in coverage.

I engaged in the community, I networked, I made friends I learned, every day. I want to drive home just how important it is to interact, but also to find your niche and share it. Don’t be afraid to showcase your work and above all else, believe in yourself.

How to participate

Although you may be unsure about how you can best contribute your value and participate in the space, there are in fact a number of ways that you can engage. In the list below I outline 10 ways in which you can actively involve yourself in the NFT world.

1. Find the important names and interact with them, find out how they participate themselves and who they are interested in. Share your thoughts, ask questions and get to know the community.

2. Join Twitter spaces, join as many as you can and push yourself to interact even if you are stepping out of your comfort zone. When you remember we all have silly cartoon pictures as our profile pictures, it should feel a little less daunting.

3. Share your journey, share your passion, share your interests and put yourself out there. By putting a background to your profile, you will help to better connect yourself with the community.

4. Join Discords and engage with the communities there, the NFT future is built upon friendships and interactions, say gm, ask how everyone is, you will soon find that you are an active community member.

5. Support others, this is key to participating in the community and it should always be at the forefront of your mind. Liking and retweeting are the first steps towards a meaningful relationship!

6. Be active, it is very easy to quickly lose track of what is happening if you step away. Don’t just stay in one place, explore all of the avenues around you.

7. Research, there are so many web 3 and NFT sources of information, ensure that you are reading articles that discuss the NFT world to learn more every day.

8. Collect POAPs, they are free NFTs that reward you for showing up or participating in events. Just like paid for NFTs, POAPS can be tracked and stored in a digital collection. POAPs are great first stepping stones into the NFT world.

9. Scope out the different cryptocurrencies, ethereum is not the only prominent crypto that you can use to purchase NFTs with. Both Tezos and Solana are emerging marketplaces with lower entry points.

10. Enjoy being a part of the community that is developing the next stage of the internet with web 3.0. The NFT space is a collation of creatives, developers, and strategic minds all in one place. There is no better opportunity to connect than what we have right now, so connect!

Follow these steps and you will soon find that you are more involved in the NFT space than you once were. To summarise, connect, network, create, learn, support, and repeat. These should be the ethos that you consider every day, but most importantly enjoy yourself. If you are passionate about being in the NFT community, everything else will flow naturally.

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An overview

NFTs are issued on blockchains, these are public systems that record information, namely transactions that occur between parties. They are non-fungible meaning that they are unique, unlike a fungible token like bitcoin which can be exchanged equally. NFTs can be represented by images, GIFS, videos, and audio, all of which are considered varying forms of art. Initially, NFTs proliferated back in 2012-2013, but they resurged in 2017 and then again for the bull run in 2020.

Slowly over time, many people have begun to realize the massive potential for issuing assets onto blockchains. NFTs help to assert who is the owner of the asset, they prevent plagiarism and present creators and collectors with direct ownership which can be traced via the blockchain through smart contracts.

The NFT market makes digital assets provably scarce, they are recorded and cannot be altered. Effectively, NFTs have solved the issue of provenance. When you purchase an NFT, it has a unique ID and it cannot be replicated meaning that it cannot be copied. Importantly, the transaction is both secure and permanent.

The first NFT

The first-ever NFT was minted by Kevin McCoy in 2014 on the Namecoin blockchain, his art piece was named “quantum”. Fast forward to 2021 and his NFT was sold for $1.4 million at the Sotheby’s Native Digital auction, a piece of art that was initially skepticized is now a piece of history. When Kevin first presented his artwork, it was reported that the audience laughed and jeered at the idea, and we can still somewhat draw similarities to the mainstream conception of NFTs today. Now Kevin and his NFT are highly respected and recognized for being the first experimentation with novel technology.

Rare Pepes

In 2016 when memes were thriving, they also began to surface on the blockchain. Namely the ‘Rare Pepes’ which are cartoon depictions of frogs created by Matt Furie, and have a rich history in the culture of memes. The frogs were sold via the Rare Pepe Wallet website which features thousands of pepes in different manners and forms. In March 2020, the rarest pepe of them all sold for 205 ETH which equated to $320,000 at the time. This sale was another catalyst in the NFT and crypto world encouraging more and more people to recognize and appreciate the value of digital assets, even if they are memes.

CryptoPunks

A year later CryptoPunks came around, John Watkinson and Matt Hall created an experiment of 10,000 algorithmically generated, unique characters, on the ethereum blockchain and minted them for free. CryptoPunks are described as a mixture of ERC721 and ERC20. Initially, they saw no traction and the reaction was fairly silent until suddenly they were swiftly sold out within 24 hours. Initially, the CryptoPunks were selling for a couple of dollars, today, Crypto Punks are worth thousands, and in some cases millions. They are the staple NFT collection and one of the most sought-after avatars in the entire space.

CryptoKitties

Cryptokitties also released in 2017, this NFT game was the earliest to hit the blockchain enabling players to purchase kitties, breed, play, and sell their virtual cats with ether. Since the game launched they have gone on to generate millions in sales from both direct and secondary sales. The game enabled many new users to encounter and engage with NFTs using the ERC721, helping to bring more public acceptance of the growing concept. Moreover, Crypotkitties like CryptoPunks ignited a surge in NFT collections to follow and thereby seeing the market also grow much larger.

NBA TopShot

Dapper Labs NBA Topshot launch served to introduce thousands of sports fans into the NFT world where they could buy and trade the NFT cards digitally. Each ‘moment’, is captured in a short video of the basketball play and each moment would differ in rarity. However, the token is simply more than a trading card, they also function as membership cards providing access to real-life NBA benefits, products, activities, and experiences. For many, NBA TopShot was and is still one of the main gateways for NFT collectors.

The Bored Ape Yacht Club

The BAYC certainly ignited the NFT boom, it is a collection of 10,000 randomly generated apes which released in May of 2021. Like Crypto Punks, initially, they struggled to sell out in the week-long presale, until overnight the whole collection sold out. Despite the collection starting with a small group chat, a graffiti board, and a low-fi radio channel, they have now expanded into the biggest NFT collection valued at billions. A number of high profile celebrities have aped in, they have expanded the group via The Bored Ape Kennel Club and Mutant Ape Yacht Club, as well as in real-life events such as ape fest. The BAYC provides collectors with a membership pass which offers a wealth of utility as displayed in their roadmap including a game, merch, a DAO, token, and more in real-life events.

Wolf Game

Wolf Game is one of the most recent play to earn games and has amassed a volume of over 13,000 ETH since it was released. The game involves the trading of sheep and wolves in the metaverse as well as game theory and staking, both of which have become important dynamics in the NFT space. Following its rapid ascent, several projects have preceded aiming to replicate its success. The interactive nature of this NFT is certainly another step of expansion and innovation in the NFT world, whether it lasts or not.

We are still extremely early in regards to the innovation and opportunity that is capable within the NFT space. All of the projects discussed above are prime examples of the development in NFTs, but there are many more projects that have not been discussed in this article.

The pertinent question on our minds now is what is next. Play-to-earn games and tokens are rapidly growing in popularity with many variations following. As far as NFTs, there is no doubt that they will stick around, there are endless opportunities and we are already seeing mainstream adoption and recognition from major corporate brands, namely Adidas in the past week. A few years ago, NFTs were laughed at, today, they are still somewhat misunderstood. But what we do know is that as time passes, NFTs are also unlocking more potential as a technology important for our everyday life, and this is becoming clearer every day.

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DAOs have taken the crypto space by storm; communities are coming together and monetizing their work while simultaneously shaping the future of web 3.0. But what are they and why have they increasingly surged in popularity over the past few months?

What is a DAO?

A decentralized autonomous organization (DAO) is a group of individuals who share the same values and are committed to working towards the same mission to help bring their brand forward via a decentralized set of rules.

A DAO is centered around community; it gives each individual member a voice via votes and encourages social and community value. Whether it is comprised of 10 members or 1000, a group of individuals is a DAO if they are working towards a shared mission via the blockchain.

Why are DAOs significant?

DAOs fundamentally challenge the traditional comparisons of start-ups and companies in the sense that they are public, transparent, and decentralized. Effectively, they are more trustworthy and enable fair distribution of wealth in real-time.

While many traditional companies are closed, the entry barriers are high, usually non-transparent and hierarchical. DAOs in contrast are built from the ground up, they are more accessible and are open via the blockchain, where every transaction is viewable.

Consider web 2.0 where we consumed and participated in transactional ways, on the contrary web 3.0 is providing individuals with the opportunity to personally interact within communities and shape culture while receiving both financial and social value. Individuals are betting on the community as opposed to a specific person or name; this is the fundamental difference.

The History of DAOs

DAOs have been around since the crypto surge in 2016/17, but as with many crypto-related concepts, the acceleration surged enormously during 2020 and the pandemic. At a time when we could not socialize, we brought our day-to-day interactions to the web, and subsequently, we built meaningful and intimate relationships with those around us.

This brings us to DAOs. They similarly foster these same values, where social involvement is the key to their existence. In a world where we have our social and financial spheres often separated, DAOs have sought to merge the two, enabling friends to work alongside each other as co-workers, and seeing them financially incentivized by the work that they do together. From the group chats that we participated in, we are now seeing an opportunity to create value out of the interactions we produce.

As it has become easier to create our own identities and participate online—in addition to a growing interest in the novel technologies that comprise web 3.0—DAOs are seemingly the stepping stone into formalizing these communities into legitimate brands and businesses.

How do they function?

DAOs help to utilize funds in a productive manner. Members receive governance tokens, which allow them to propose or vote on where the funds and time should be allocated, as well as the direction of the mission. There are several types of DAOs, which include grants DAOs, protocol DAOs, investment DAOs, service DAOs, social DAOs, and collecting DAOs, all of which offer different purposes, yet they are all governed in the same way: community participation.

DAOs rely on blockchain technology and are coded via smart contracts. They cannot be changed unless DAO members vote.

A Conversation with Greg Isenberg:

I spoke to Greg Isenberg, a leading web 3.0 CEO, to find out more about what the community means within DAOs.

How do DAOs foster community and build digital culture?

"People need excuses in order to find community. Sports and streetwear are examples of this. DAOs are the digital excuses to find community. 'Come for the DAO, stay for the community,' is the new mantra."

How do you see communities evolving within and under web3 tech?

"Web3 will supercharge existing digital communities."

The questions:

DAOs are challenging the norms that the mainstream world is accustomed to. Take for instance a traditional investor, they may invest in a company and see their gains increase by 20%, meanwhile, participants of DAOs and NFT traders are seeing extortionate gains in the thousands on their animal profile pictures overnight. This is enough to raise questions and doubt, with many describing the crypto space as a place of scams, money laundering, or even tax evasion.

If we zoom out, participants of DAOs and NFT traders are working within a complex market, they have to scope the sentiment of community which is a skill in itself, and thus to compare the two is difficult.

Possible challenges:

Despite the premise of DAOs focusing on community and social contribution, there will inevitably be a time when there are more speculators and investors as opposed to contributors. To counter this, there should be a focus on the core contributors and building value within this small percentage to lead the way forward.

Most DAOs are not structured around one vote per person. It's usually dependent on how many tokens an individual holds. Arguably, this could be perceived as undemocratic where bigger influencers outvoice the smaller ones, yet these issues could also be resolved via limits. It is also important to note that not every DAO operates in the same manner.

Legally, in terms of regulations and legislation, there is little known about what can and should be enforced. Furthermore, recognition by governments is also an issue that necessitates more exploration. It is extremely early in the history of DAOs and given that it is such a novel concept, what lies ahead is uncertain.

DAO use cases:

A few weeks ago, ConsitutionDAO attempted to buy the US constitution, narrowly missing with a crowdfunded $46 million bid. If this has proven anything, it has demonstrated the significance and ability for DAOs to rally thousands of people together towards achieving one goal. Despite losing the auction, it has certainly highlighted the potential of DAOs for the future, and namely the evolution of web 3.0.

DAOs are also pooling funds together to collect sought-after NFTs. Take for instance PleasrDAO, a group of DeFi leaders and collectors who have the goal of acquiring significant NFT pieces. They have collected some of the most iconic memes such as Doge, fractionalizing it amongst the DAO.

There is also SharkDAO, a DAO that began with a group of Internet strangers interested in pooling together resources to acquire Nouns, a novel experiment in generative, NFT art. Since their establishment, they have acquired 5 nouns, brought together over 400 Sharks, and raised almost 1000 ETH.

Jenny is the first-ever metaverse DAO that holds one of the largest NFT collections. The DAO is also the first-ever social token on Unicly. The DAO members have exclusive access to voting on which NFTs to acquire as well as access to group chats and research. In this DAO, 70% of the funds are used to acquire NFTS.

The Jenny token (uJENNY) is a membership card that gives access to exclusive channels, insights, and reports, AMA sessions, management of funds, and tie-ins to the Unicly protocol.

A Conversation with Kinjal Shah:

I also spoke to Kinjal Shah, a crypto investor who is down the rabbit hole of DAOs. We discussed the DAO landscape, what it means to work within one, and the future of DAOs.

What is a DAO and why did you decide to join one?

"DAO stands for a decentralized autonomous organization. Effectively, a DAO is a way to coordinate capital and labor. In laymans terms, it's a group of people with a shared mission and bank account. I love finding DAOs where the mission speaks to me. I co-founded Komorebi Collective this year with an amazing group of founders, investors and builders. We are investing in female / non-binary crypto founders via an investment DAO."

What are the pros of being in a DAO and what does working with one look like?

"It's a great way to coordinate with a larger group of individuals for a purpose or mission. There are a lot of operational pros (more transparency and less hierarchy). It also leads to being very entrepreneurial as a contributor. Everyone has to do their part for the entire group to move forward."

How do you see DAOs sustaining for the long-term future?

"I think we will start to see more models of organization. Orca Protocol's pod model is a great example of how smaller groups can form a larger DAO and get decisions across the line."

What is one piece of advice you would give to someone wanting to learn more about DAOs?

"Learn by doing—find a DAO whose people and mission really resonate with you, and then jump in."

Will DAOs eventually compete with some of the largest organizations and possibly even nations? The future remains to be seen, but what we do know is that DAOs will continue to gain mainstream adoption and investment; it is impossible for them not to.

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In this article, we will find out more about 4 interesting artists. Each with their own style, they are contributing significant value to the NFT and art world.

Amber Vittoria

Amber is an artist and poet that creates simple and abstracted colors juxtaposed alongside powerful words. Amber’s artworks create a relatable, colorful, depiction of womanhood and seek to dismantle social stereotypes against women. Additionally, each of her art pieces is underpinned by the feelings evoked within her and from the colours themselves. Since she entered the space, she has created 6 NFT collections on OpenSea and has another collection on Coinbase, “Just Let Me Paint Sunlight” launching very soon!

How is your art unique and what inspires you?

The loved experiences of women in my life is the main inspiration behind my works; each piece aims to come from an honest authentic place from within myself.

Where do you want to take it in the future?

My goal is to continue to storytell in my works via NFTs; the ability to collaborate and showcase narrative in this space is such a beautiful opportunity.

Matt Doogue

13 years ago Matt Doogue went through a dark time when he made an attempt on his life. But with willpower, healing, and learning, he carried on. He picked up a camera and his creativity soon began to flow, he was published by national geographic, won countless awards, but above all else, photography saved his life. Since entering the NFT space he has experimented with a number of styles of photography with a primary focus on colours and nature. His work offers a window into a new world, one that reveals the hidden, and the unexpected. Currently, he has 3 separate NFT collections on OpenSea all of which capture art through his lens.

How is your art unique

My art is unique as it offers insight into a world most don't see, a hidden world on the macro scale, stashed away beneath our feet. My macro photography consists of focus stacked images of live creatures. This world is what inspires me. It allows me to disconnect from the hustle and bustle of real life, it helps to keep me grounded. It offers a new perspective and brings much needed awareness to my mindset. I'd love to have an art gallery dedicated to showcasing this hidden world one day.

Indrator

Indrator is an artist that specializes in voxels and has been creating since the NFT boom in March. Within the vast 3D landscapes and settings that she creates lie deeper meanings, her art is often portraying a story or message as seen within her artwork Drowning. The piece is reflective of how she feels about the NFT space and life in general. Furthermore, she extends the message of her artwork via a medium page, podcast, and blog where she discusses her art, pertinent topics in the space, as well as connecting with other creators. In addition to her work on Known Origin, Indra is currently preparing for a new pfp collection named “Project 52”.

How is your art unique

Being a voxel artist, alot of the most popular voxel art is based on being realistic. Most art is either based on real locations or made to look as natural as possible. I wanted to create things that were fun and colourful and gave more of a stylized cartoon look. Due to my very large scenes, I believe this cartoon look allows me to craft detailed places and cites and keep them charming. My latest piece, the game collection, is based around video games and created several levels from streets of rage, I then added some pixel art and interaction to try and create something new in the voxel space. I think this is what makes my work unique.

What inspires you?

My life is probably the biggest inspiration. Every piece of my work is something I either love or believe in or how I feel. I believe art doesn't always need a deep meaning it can be things you love from your childhood or a piece trying to make someone else relive memories. My night at the movies piece featured over 20 different 80s movies in that scene, and I got lovely comments like I remember that or I watched that when little. Art should sometimes take you back in time or let you relive something. These things inspire me to create moments of my life or how I feel or how I want you to feel when looking at a piece. I also love adding tiny hidden details; I sometimes hide these in pieces my Halloween piece has a small nod and tribute to Torsten, who passed sadly in the space recently. I wanted to add something that will forever be on the blockchain for him. Life inspires me basically.

Jensalittleloopy

Jen is not your typical NFT creator or designer, she is a niche artist who utilizes yarn, paint, glue, magazines, and pixels to create her artwork. Through her work, she is demonstrating the potential of the NFT space, branching out from the digital art that heavily dominates the market. From mixed media journals, abstract painting, and even crocheted Hugamonsters, Jen has explored and collaborated with a variety of mediums. This hybrid of art has helped her to curate and advocate for a new title, whereby she is on a mission to support ‘Crypto Crafting’!

How is your art unique and what inspires you?

I’m one of only a few fiber artists creating NFTs right now. Since I started in February 2021 one of my missions has been to support #cryptocrafting and help other crafters and makers in the NFT space - it’s been fun to see new folks enter the space and find lots of success here! I also work in collage and mixed media which stands out in a space that’s so heavily dominated by digital artists. I love playing with new ways to combine analog media with digital and also just showing up with analog work and seeing what happens. My latest obsessions are cutting apart stories from 1930s magazines to rearrange the words into poetry and making collages with security envelopes.

My work is inspired by everyone around me – it’s my way of answering questions I don’t have words for. Hugamonsters were created to help one of my sons who was having a rough time. My words couldn’t help, but a silly little monster lifted his spirits. Life is hard so, especially with my crochet and digital art, I try to create work that makes people smile. Before NFTs my creative community was siloed around the media I created in – I had lots of crochet, mixed media, and collage friends. After joining the NFT community I’ve connected with so many other types of brilliant artists who have inspired me to look at my work differently. This cross-pollination has helped my creative practice grow and evolve and that process has been so much fun!

Where do you want to take your art in the future?

Whew, my project idea list is at least a mile long! I’d love to learn how to create stop motion videos with amigurumi. It would be fun to create crochet wearables and learn how to design their matching digital counterpart in the metaverse. I’ve been toying with the idea of a Hugamonster generative pfp-type project. There are a few crochet plushie collections sketched out for 2022. And I’d love to keep digging into the mixed media, collage, and poetry work I’ve been doing. The thing is, I follow my interests wherever they lead me. Even when I plan things out if a new project grabs my attention I’ve learned I have to just go with it – that’s where my creative happy place is and working in that energy is the most important thing to me. Ultimately, I’d like to be creating full time.

The NFT space has opened up a world of opportunity and talent, where artists and creators are entering from all directions. The artists above have illustrated innovative and emotive ways of displaying their art and are successfully capturing their own stories via NFTs. This is just a window into some of the creativity that has helped to build the space to where it is today!

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In this article, we will take a deep dive into the craze of whitelists and how they have taken the NFT collection scene by storm.

Whitelists

So what is a whitelist and how does it work?

• Whitelisting is where a wallet address is approved prior to minting, meaning that they will be able to sign in and purchase the said NFT on the set date.

Why is this important?

• Whitelists are significant given that they avoid gas wars. For example, collectors that have been whitelisted are able to purchase the NFT across a 24 hour period as opposed to everyone minting all at once which in turn drives the transaction prices up. Subsequently, a whitelist means lower gas prices.

• They give equal opportunity, meaning collectors who would be priced out due to gas will get a chance via the whitelist.

• Whitelists help to build communities in an organic way where bots cannot hack the system.

How do you get whitelisted?

You can get whitelisted for projects in a number of ways, and it will almost always involve active participation.

• To get whitelisted you have to be early, usually through a project’s discord. Projects often set a number where for instance the first 2000 members are whitelisted, anyone who joins following this will not be whitelisted.

• Some discords use engagement as a means of rewarding members. Those in the discord will have to achieve a certain rank and once they do, they will be whitelisted.

• Some projects make their members earn a whitelist spot by setting them the task of inviting other members, once they invite a certain number, they will be whitelisted.

• Projects may even conduct raffles and those who win, receive the whitelist spots.

Each project is different and has its own method of whitelisting, but perhaps the most renowned currently is the whitelist game. This is something that Voltura and the Psychedelics Annonymous team have executed perfectly since they began to tease the project in early November. Not only has it encouraged active participation and excitement for the collection, but it has also seen his personal account grow from 5k followers to over 60k in a matter of weeks.

The game

Voltura has implemented a varying number of tactics for keeping the community engaged in his whitelist game.

As an example, he dropped a tweet asking a question, and following this, he replied that to the same tweet saying everyone who replied had been whitelisted. Meaning that those who directly supported him were rewarded with a whitelist spot. Why is this so effective? This guerilla-style of marketing encourages you to both engage, and turn on your notifications so that you never miss a tweet, given that every tweet could be an opportunity to earn a whitelist spot.

Voltura often plays the notification whitelist game, meaning that the community had to have his notifications on to see the Tweet. The first 50 people to engage would-be whitelisted, and many collections have since followed this same method. Within seconds of his tweets being posted, he receives hundreds of likes, demonstrating the sheer volume of community engagement.

He also used riddles, and in whitelist game #5, the community was tasked with the unscrambling of sentences and the first 20 people to solve would be whitelisted. Furthermore, he has used guessing games such as predicting his screen time, and even dropping hints then deleting tweets. All of which have encouraged the community to be aware at all times! Since then, there have been 13 whitelist games, and he is not stopping until all 9000 people are whitelisted.

Psychedelics Anonymous @psychedelic_nft

We are waking up.

8:00 PM ∙ Nov 21, 2021

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The community

So how has the whitelist game impacted the project and the community? Psychedelics Anonymous posted their first tease of the artwork which racked up a total of 439,000 views, 14,000 likes and they have since amassed over 41,000 followers, despite only posting 19 tweets. The sheer volume of eyeballs on the project is unprecedented and is a testament to the promo and marketing from the whitelist game. Where previous projects ensured that collectors were ready on the dot for the mint, the introduction of whitelist games has encouraged collectors to have their eyes peeled at all times.

Not only has the project grown, but the community has also become enthralled, active, and engaging in every tweet. Some have made creative Twitter videos, fan arts, and at the most extreme, even a shrine in support of voltura and the project. The people are putting in the effort, seemingly not just for the whitelist spot, but because they want to be a part of what is happening, which is something special.

Since Voltura began his games, a number of projects have followed in his footsteps, utilizing ambush tweets, notification games, and most importantly, whitelists. He has set the bar with his marketing of the project, his community engagement, and his leadership. Evidently, the community is certainly prepared for his upcoming project.

The space is changing every day, new ideas come and go proving just how innovative, and experimental the NFT world is. But will we see another novel style of NFT drops? Most likely, yes. But only the future will tell!

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If you are new to the NFT space, it is easy to fall into the trap of following the hype as opposed to researching a project. Seeing NFTs sell for thousands of dollars is an incentive to unknowingly ape in and believe that what you have purchased will succeed, but this is simply not the case. Having a clear understanding of who the team is, the community, the vision, and the project are each extremely important to consider and research thoroughly. Don’t just follow the crowd, make your own informed choices and do your own research.

In this article, I will discuss some of the most important elements to consider before making decisions on projects in the NFT space.

The pitfalls of apeing in

Some see the NFT space as a gateway to making quick profits. While this can be true, this mindset is also counter-productive. Betting everything on one project and expecting bigger returns in weeks may see you get incredibly lucky or as degens say, severely rekt! Many will attest that a long-term outlook is key, and one of the most important factors.

Take for instance the Mekaverse collection. Last month they were the most highly anticipated NFT drop in some time with many newcomers to the space seeing this as their opportunity for a breakthrough pfp project. Prior to the reveal of the artwork, the floor price of the placeholders skyrocketed to just under 10 ETH, however, just weeks later the floor dramatically plummeted to 1 ETH. The collection was faced with a number of criticisms, and consequently, the value dropped as quickly as it rose. Those that aped in during the peak will have lost tens of thousands IRL dollars while the team behind the project has made millions and will continue to earn royalties on every secondary transaction.

Beanie.eth @beaniemaxi

The MekaVerse collapse is more than just fomo and weak hands capitulating. This is actual fraud. Insiders had access to hidden metadata and were able to snipe legendary and ultra rare prereveal mints from the unsuspecting collectors. Even the devs were involved in this. It’s bad.

3:43 PM ∙ Oct 14, 2021

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This example is an important reminder to be attentive to the projects around you. For many, it has taught them to avoid making impulsive decisions and to consider what in fact makes a good project. Interestingly, it has also catalyzed a shift in the market, pfp projects are becoming increasingly more difficult to sell out, largely because the market is so over-saturated. Where before many sold out instantly, now only the most unique and interesting ideas will pull through.

Judging a collection

It is very easy to jump on the hype train and fall victim to fomo in the NFT space. As discussed above, it can lead to irrational decisions and your hard-earned ETH can disappear as quickly as you gathered it. Of course, the space is volatile and any investment is a risk, but there are ways in which you can best judge the intentions of a collection before apeing in.

1. Who is the team?

It is important to find out who the team is. More often than not, if it is a completely anonymous team that has not shared who they are to the community, their intentions may not be to stay for the long term, irrespective of how interesting the project looks. Although some projects with anonymous teams have succeeded before, doxed teams are more likely to receive the support of the community. Especially with the rug pulls and scams that have become increasingly more common in the NFT space. There are 3 scales of identity which include:

• Anonymous- no twitter, no background.

• Semi doxed- Twitter trustworthy but not IRL displayed.

• Doxed- Twitter and IRL selves displayed.

You can even create a checklist and utilize this when trying to find out who the team is.

• How long have they been in the Twitter space?

• Do they meaningfully interact with the community?

• Do they support other projects in the space?

• Who have they worked with before and what is their experience in what they are launching?

• Are they supported by mutual creators in the NFT space?

• What are their other works? Do they have links to prior projects and experiences?

Knowing exactly who the team is can give you that conviction in the project and give you the reassurance that this is a project being built for the long term.

2. Who is the community?

Let’s say you jump into the project’s discord, and instantly you are met by ‘wen’, ‘pump’, and ‘let’s get the floor to X!’ Instantly red flags are raised as these are evident signs of an artificial community. It probably means that many investing in the project are hoping to pump their bags and flip, which of course is never an ideal community to be a part of if you are looking through the scope of an investment perspective.

Never trust the numbers, a project can have thousands of members and equally, half of them could be bots. If they are utilizing a whitelist, members can make multiple accounts in hopes of grabbing more than one space. Subsequently, you have to look at the content of the interactions.

• Are the members kind?

• Are they excited for the future of the project?

• Do they ask questions and want to learn more?

• Do the members uplift one another and share their support?

• Do the team and the community consistently interact with one another?

• Do they welcome new members?

These are just a handful of factors that are important to consider when observing the community. They are signs of organic growth and will more often than not lead to something meaningful down the line. Even if it is a slow burner, this is still a good sign, organic growth trumps fast pumps and many in the space will also attest to this. Real success is built over time, not in a matter of days.

3. Genuine roadmap or copypasta roadmap?

Roadmaps have become less of a deciding factor when investing in projects. Since April, roadmaps were an important component and helped to steer the project and community in the right direction. Contrastingly, today roadmaps are less authentic with many collections copying the roadmaps of predecessors simply for the sake of doing so. Many of the features can be interesting, for instance giving to charity, airdrops, competitions, and in a project with good intentions they are valuable. But when a project is simply mirroring other projects for the sake of competing, this roadmap serves less of a meaningful purpose.

Some of the most successful projects have also offered no roadmap, take for example CrypToadz by Supergremplin. He created the collection, minted 10k and the community created their own value. Therefore although roadmaps were the benchmark for a certain time, this is not always the prerequisite for a successful collection.

Of course, this is not to say that roadmaps serve no purpose in the current climate, they certainly do. They help to set the vision and future of a project which is essential when making an investment. However, it is the authenticity that matters, this is the keyword.

4. Reactions

How do the team and project react to the climate of the market? The likelihood that floors will fluctuate is very high in the NFT space, in fact, it is inevitable. The key observation however is the reaction to this. The most successful projects discuss the floor, it is a daily occurrence, what matters is the depth of these discussions. Are they entirely fixated on the floor, do they spread FUD when prices plummet, do they encourage pumps? Or do they embrace the market, they continue to build and reassure the collectors that this is a long-term game. These are the signs that you must pick up on! The successful projects will always continue to build during the bear markets, this demonstrates that they are creating a project for the long term.

Final thoughts

With time in the NFT space, you will eventually create your own personal checklist to help you go forward!

This article does not constitute formal financial advice and is simply my own observations in the NFT space.

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