It’s all a slow rug

State of the NFT market

A while back, Zeneca posted this tweet. Most people involved in NFTs aren’t making money.

A few months later, people are still trying to figure out the game. But one general consensus is, that 99 percent of these projects will fail.

What’s transpired with Pixelmon is a great example of this. A project that raised $70 million is surrounded by drama. The founder was doxxed as a 21 year old who outsourced all artwork to freelancers on Upwork. They’ll also be outsourcing game development to an external company.

Coffeezilla has a great summary of the situation below.

Project’s hypes fizzle out, floor price drops, and people continue to try and make money in a space where they have zero edge. Some, don’t even understand the basics of supply and demand.

What edges are there?

Information edge

At the moment, a large majority of NFTs fall under collectibles. The whole idea of owning a collectible, or something that is scarce, inherently builds communities that focus on exclusivity and insider access. If an individual from these communities are excited and plan to purchase other projects, you can bet members from the same community will follow suit. Tribalism in crypto is nothing new.

Consider where you are on the information totem pole.