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The NFT space could enter a "dot-com bubble" phase.

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@blind-spot
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It will not be the end of NFTs, it will rather be the birth of space with a far more solid foundation to build on. What you and I can somewhat agree on is that NFTs have an underlying footing of proof of ownership that has acted as a very efficient catalyst, and that whoever has claimed a slice of this cake is very early compared to the general population.

However, I am skeptical. Or I have become skeptical. The more I dive into the space the bigger my skepticism grows. The dot-com bust had a similar prelude. A fresh and innovative venture had knocked on the doors of the market. The internet. The few years before the bust were fuelled with overzealous confidence, a growing potential, and massive speculation leading to a highly overpriced balloon at the brink of going boom. And it did go boom, right?

The internet was just as marvelous a gem as it is now, but less polished. The potential was there, but not matched. The confidence was in the right place but at the wrong time.

Basically, the website-based businesses had a lot of talk with very little walk. The results were not convincing enough, along with interest rates and more. Naturally, the investments were on thin ice.

NFTs are kind of in a similar situation. The hype is just as real. But is it all hype?

Of course, not. As I said, the major part of the NFT space is still rolling on the basis of proof of ownership. Add whatever you like, may it be artwork, photography, music, all of it is the cherry on top.

We are now beginning to see various emerging use cases of NFT. Fractional ownership, I spoke of here, physical alternate asset verification and storage, which I shared here, gaming, exclusive access, social status (I shared here), and so on. But I think all of these utilities are only available to a fraction of the assets in the space.

What about the rest?

The number of projects is rising like the tides on a full moon night. I have switched my attention from the popular opensea and eth to lesser popular solana, and still in just a week I have seen more viable projects pop up than I count on SOL.

It is becoming increasingly annoying to keep track of all the projects and decide what is viable and has potential and what does not. What is more annoying is that most projects, irrespective of their blockchain, do not necessarily have any utility attached to them. It still looks like a reselling game more than anything.

90% of these projects will fail. That is my take. If the space cannot feasibly switch from POW to majorly providing attached utility, the dot-com bust will happen.

A good example is Splinterlands. The assets in the game, cards, lands
or any other digital asset has or will have some utility to it. Other projects like sandbox and decentraland seem to have some potential, especially when metaverse becomes a thing. But what is metaverse? Is it viable? Sustainable? Profitable?

When the space gets saturated with projects that do not offer much on the table, confidence will consolidate in only certain places that do add to the pot. All the scams, copycats, rugpulls aren't helping either. When the talk gets bigger than the walk, a painful reality check will hit. And I am eagerly waiting for it, but not happy about it. The silver lining is that it will bring about a new flourishing era, that will have a solid foundation and exceed the success of the current digital age.

NFA. Personal opinions.

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