NFT projects are just MLMs for tech elites (every.to)

Article summary

The article compares NFT projects to Multi-Level Marketing (MLM) companies, suggesting they share similar structures and may suffer from the same failures. It highlights the emphasis on community, exclusivity, and ownership in NFT projects, which can lead to spectacular flameouts. The authors argue that investors should exercise caution when evaluating this emerging asset class. The article also explores the concept of scarcity and digital ownership in the context of NFTs.

Main themes

• NFTs and MLMs
• Digital Ownership
• Scarcity and Value
• Community and Exclusivity
• Blockchain Technology
• Real-World Applications
• Security and Efficiency

What commenters say

• NFTs are not scarce and their value is based on artificial scarcity created by the community.
• The concept of owning an NFT is flawed because it's just a digital representation of something that can be easily replicated.
• NFTs have the potential to provide access to social communities and exclusive events, which can be valuable to some people.
• The use of blockchain technology for NFTs is unnecessary and doesn't provide any significant benefits over traditional systems.
• The value of NFTs lies in their ability to provide a sense of exclusivity and ownership, which can be a valuable experience for some people.
• The comparison between NFTs and MLMs is valid because both rely on recruiting new members and creating a sense of community.
• NFTs can be used for more than just digital art, such as event tickets and hotel bookings, and can provide a more secure and efficient way of handling these transactions.
• The infrastructure for using NFTs in real-world applications, such as concert tickets, is still lacking and needs to be developed.