Supply is growing really fast. Watch out below.
Two months ago, I wrote about NFTs and how they are an example of manufactured scarcity. Each individual NFT is unique, but there are a whole lot of unique NFTs out there, which means that they aren’t really that rare.
NBA Top Shots keeps printing more moments and prices are coming down commensurately. Whereas the most common and unwanted moments sold for more than $10 a while back, their prices have slowly drifted down to $2.
Even “rare” Top Shots aren’t that rare when new ones keep being minted. The same can be said for just about any NFT.
There’s only so much money to go around. (You can say the same thing about new top level domains when they launched. There was only so much domainer money to be invested in new TLDs. The first ones out of the gate, such as .guru, were buoyed by domain investor money. There wasn’t much dry powder left when the 100th domain launched.)
I don’t know what the total pool of money is out there to go after digital collectibles such as graphics. But I do know the supply of NFTs is growing quickly, so don’t count on much price appreciation.
Collecting things can be fun. But if they don’t have utility, you’d better collect them for more than just hoped-for price appreciation.
Wrapping Domains with programmable scripts (NFT) onchain gives the token/url utility and autonomy to move from just a image/unity data to something as you mentioned, has utility which drives value.. Encourage people interested in this stuff to really check out what we been working on for 5 years and how it can add value to domain portfolio’s…. RealtyDAO and Contrib are slowly rolling NFT solutions and marketplaces to outside members that can scale…
I’m shocked! For me the NFT rage is no different than any over inflated market we see right now, rational and common sense to the wind, quick easy money. Some will be left holding… errrr not actually holding but you know what I mean, the bag.
NFTs are just another fraud.
First there was conventional fiat currency, printed for nothing, hugely successful as the scam was hidden for a century. The next step, since people caught on to the fiat currency scam, is crypto fiat currencies – once again printed for nothing by a select few and then sold to us as being “rare and valuable”. This con did not work as well as they’d hoped, now they are on to NFTs, another virtual token that can be printed for nothing and then sold to fools as being valuable.
I also believe that the NFT market is mostly fake marketing hype, as the 1000s, tens of 1000s, or even up to millions being allegedly spent on these token is utterly ridiculous. Eg: crude pixelated space monkeys selling for $1000!!!
Now before anyone jumps in to defend cryptocurrencies:
Conventional fiat: fix the token values and expand supply of tokens to infinity.
Crypto fiat: fix token supply, then expand “value” and divisibility to infinity. Bonus: create unlimited different tokens.
Both of those can be created for nothing (wasted computing is NOT real, useful work). Same fraud, different implementation.
This: “if they don’t have utility, you’d better collect them for more than just hoped-for price appreciation”
Brilliant. Nicely stated.
NFT is going to transform gaming. It’s going to get A LOT bigger. All the money sloshing around in crypto, much if it is going to move over here, and then some.
Money is going to pour into blockchain gaming for the better part of a decade. It will only go up, until the top…somewhere far out on the horizon.
It’s funny that game items are the best use case for blockchain/NFT. Each item and action in these games are made/held on blockchain. It’s true ownership. You aren’t buying items from an in-game cash shop to ‘pay to win’. These, you own. There are markets to trade them. It’s really, at this point ‘invest to win’. ‘Invest to play’
It is a tiny niche now, but growing fast. This will be a multi-trillion dollar market within 10 years. Gaming NFT. The assets are liquid, and people can move from game to game easily. People are already making over $100/hour playing some of these games. Some NFT game items have gone up 100x even 200x in value. Many others are ‘just’ 10x. It’s happening over and over.
Some games will be bad, they will inflate the NFT, but others will manage the assets well. There are too many details to just write in a blog comment.
I know this is the best investment going. If you thought gaming was big now, just wait. 10 years from now, an average gamer will have $10k – $100k in game item NFT assets tied up. Some people will make a LIVING playing games with their assets, and investing in one or another too.
The real economy is shot, it’s been shot, and it will go down and down. This alternative is gaming. This generation is going to make gaming work. They are going to LOVE investing, and pour their lives into it.
The art NFT is meh, just a quick fad. These NFT gaming items is the most brilliant use.
It’s investing as much as it is gaming. It’s easily to speculate on this NFT or that, this game or that. There is a lot involved.
I wouldn’t of wrote all this if I didn’t think it is going to be HUGE. I mean, multi-trillion PER year. It’s like investing in stocks for a new age, these gaming NFT. REAL use. Real money. Real big market. It will mean ‘everything’ to millions of people very soon.
Rare moments (NFTs) shouldn’t be losing value just because other rare moments are produced. A supply of mediocre player (rare) moments hitting the market doesn’t mean the value of the more scarce super star items goes down. Did .guru bring down prices of .com ? ? maybe temporarily . Also they may pump out 4 “rare” Lebrons, but the one that’s first or more important (as deemed by the market/community ) usually will retain more value than the others. Just like OG sports cards, rookies, firsts, MVPs, important moments all have an inherent value to a collector. . . .They’ll make more cards of those players but the rookie card is still the rookie card.
Topshot is also adding in some unique plays to their mix. There are rewards given for people holding certain quantities or even types of moments. Players are giving fans experiences and access for having moments. The community has also gamified the moments and there are even fantasy sports games being built outside of the ecosystem using these moments. I think the community aspect of this NFT is what is going to make it succeed. I think that’s some
“utility” that you can’t find in other NFTs.
and as an aside, if you were wondering . . . based on “market values” . . . .I’m still ahead on Topshot investments by almost 6 figures. . . . 1/3 of what the all time high values were.
“Rare moments” are you referring to moments I can pull up on google for free, do you have a copyright on that moment?
I love sports cards (for example, I realize these NFT have worked their magic into many fields of collecting), have since childhood and the confusion surrounding some of these offerings is huge.
I have heard the arguments, cant we just google a Picaso image just the same etc etc I get it but the comparison is not thought through well. Owning something a master hand made vs. a digital video clip is not the same thing, imo.
I wont rant on but the lack of understand what you actually own or have rights to its use vs. what you do would surprise many.
I am not into gaming at all so maybe its different maybe its a ploy to get more money and commitment out of players maybe its a great investment. Id have to research that field more.
Always, buyer beware.
JP A sports card is a picture on a piece of cardboard. I can hit kinkos and make some new ones any time.
As for a discussion on utility. I’m not sure where the demand for utility has entered in to a space which is primarily collectible but there is zero utility in a sports card with the exception of putting it in your spokes.
One thing that has some utility in sports collectibles is jerseys because you can actually wear them. Much of those items people deem collectibles have zero value because of utility. Most collectibles sit on a shelf, behind plexiglass or even in a vault if highly valued. Values in collectibles is about nostalgia, rarity (manufactured or not), cultural or niche relevance, other factors. . . and of course demand. The collectors decide what has value.
I have heard that debate before and still, just don’t get it, sorry. But if one can get in get out, turn and burn, you get my point, all the power to ya.
First, congrats on getting in early and have success with Top Shots. While I mention Top Shots because it has an active, easy-to-view market, I’m referring to NFTs more generally. And I still believe that creating lots of rare moments means none of them are really rare. Take a look at my first post on the subject, reflecting on physical sports card producers trying to manufacture scarcity. It didn’t end well.
NFT Market is just another ride in Clown World…like Crapto Currencies and TokTik… LOL !!!