What REALLY gives NFTs value?
05 June 2022
In the previous post, we proposed that “utility” is not a helpful description of what gives NFTs value.
We suggest a more useful way the think about how NFTs get value.
We proposed that your NFT is valuable because it gives you Economic Returns and the Access.
But apart from what your NFT gives you, there are features of your NFT that give it value. These features are:
Aesthetic appeal
Narrative appeal
Cultural appeal
a sense of belonging
an authentic, uplifting, welcoming community
Social capital / status symbolism / the ability to flex
Provenance: Connection to the creator or previous (celebrity) owners
Historic significance
Exclusivity, scarcity or limited supply
Trait rarity
Generational value [Genesis > Season 2]
The “on-chain-ness” of the owned asset.
For Crypto Punks, some Generative Art, etc. the asset over which the NFT confers ownership is also stored On-Chain.
Some some people will value this because it is maintains the purest Trustless-ness that is a key to the appeal of Blockchains
Next, there are some external factors for NFTs that increase their value:
the amount of marketing Hype & FOMO
Brand partnerships
Price stability and growth
the Founding or leadership team credibility
how effective the team are at delivering against roadmap targets
Security [of Smart contracts, DAOs, Discords, Doxxed founders, etc.]
Usable in multiple environments [e.g. across games or across chains]
Hopefully now you have a complete picture of what REALLY gives an NFT value.
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Generative Artwork of the Day
It reminds me of a heart. Sending some love out to y’all. Sharing is caring.
