Hear me out, NFT’s are a great way nowadays to make a big buck, but at some point I just disconnect with the whole idea of these projects. The only people that win(in my personal opinion) are the people that mint a project(the early buyers). After that, whoever purchases the said nft only puts cash into the minters hand at which the buyer has to hope the project maintains popularity so he can find a buyer to obtain a profit and this becomes a never ending loop until nobody wants to purchase because the price is too high. Am I wrong??? Please help me get a better understanding 🙂
4 thoughts on “Do NFT’s = Pyramid Scheme??? Help me understand!”
They aren’t Pyramid schemes/MLM, which are about making money from the recruitment itself. Multiple levels are needed.
They may be Ponzi schemes, which are about creating the illusion of investment opportunities. Paying old investors with money from new ones.
But mostly they are an investment bubble.
When we talk strictly about the “visual arts” you two may be correct. However, consider this side of NFT’s:
I own a small “private hire bartending” company, “The Greatest Barman LLC”. We have only 2 workers (2 owners). And we decided to create an NFT.
Our NFT is just an image of one of our clothing pieces we sell.
Our NFT costs only the equivalent of $2.
When a person purchases and holds our NFT they are granted not only the image, but the NFT its self grants them 20% of all clothing purchases from us, and 15% discount for any services purchased from us.
With a lot of our clients spending close to $1,000 on a single event, means they can save approx $150, by purchasing our $2 NFT.
This NFT however grants this discount EVERY time they work with us, as long as they still contain the NFT in their wallet they will get the discount on all events booked with us.
Now if the purchaser chooses to they can also sell, or lend, the NFT to friends or family members for $2. This means the original buyer has broke even on the NFT purchase and sale, and saved $150 in their services we provided.
Or they can sell to a stranger for $1 more and make 50% profit from the sale and still give a meaningful discount to the next buyer.
At the moment we may not have a huge market, given the size of our company and the adaptation of NFT’s into society norms, but given our 10 year plan of expanding across the eastern United States and into Europe (1 owner is American born and raised, 1 is Irish born and raised so getting situated in Ireland is already in motion) we believe now is the time for us to begin venturing into these technologies, learning all we can, so when the time is right we are fully knowledgeable and ready to capitalize on an emerging technology.
We are very new to NFT’s and still exploring how we can utilize them. But I think this utility of NFT’s is a good start for us.
Following for the conversation.
The value in the NFT is simply the discreet unique nature of the token, and that it can be tracked without using centralized data. Interesting uses for this now exist, and are under development.
It’s unfortunate that in the public’s mind, NFTs are “drawings of monkeys”. If you look at the transaction history of any of these works of derivative crap, you will quickly see that they are simply being passed around by actors that work together. Nobody unconnected to the creator is spending real money on a crude drawing of a monkey. Also, all this talk about ‘proof of original ownership’ is nonsense. The token is unique. The URL that points to a server hosting a monkey is simply that: a URL. URLs have zero value.
But, if you are in the game of trying to resell garbage, then your only hope is the “Greater Fool” scenario. Gotta find somebody dumber than yourself to make the same mistake in slightly larger fashion.