Part 3: A very quick history of NFTs
If you’re new to Crypto and NFT, or just tired of explaining it, here’s a mini-series that explains it quickly and easily. Feel free to share. This is not financial advice, do your own research.
In Part One I explained the concept of an NFT, and in Part Two about how they can have utility and value, closing with thoughts on why so few projects have any utility or value. Or future.
To understand where we’re at, and why there are so many NFT projects launching, it’s important to know how we got here..and where it’s going.
June 2017 — CryptoPunks launch from Larva Labs. They’re the OG. If you own one, it shows that you were so far ahead of the game, that you, too, are an OG.
CryptoPunks have no inherent utility, nor is their art anything special. They have value because they say something about the owner.
April 2021 — Bored Ape Yacht Club launches from Yuga Labs. Until very recently, these have also had no utility. Until NFT NYC, when members could get into some sick parties.
And now they have a game, and some metaverse properties.
But, and this is important, unless you are going to sit around and play silly games or hang out in the metaverse, this utility is, well, maybe not so useful.
The real “utility” of owning an Ape is to flex that you own an ape. And maybe that you could sell it to make a down payment on your house.
August 2021 — Lazy Lions launches and adds royalties, giving money back to its holders (and possibly running afoul of U.S. securities laws, this remains to be seen).
And then…
The floodgates opened.
People saw the valuations of these three skyrocket, so they came up with every animal-themed concept they could, said their art was cool and their community was strong, and launched.
Only a few have gone anywhere.
Even the Lions have had trouble maintaining a high floor price compared to their peak. Why? My hunch is because they aren’t the OG that Punks and Apes are.
No one is.
But there are a lot of projects that figured out they had to offer something more than “amazing art” and a “strong community”.
Because, at the end of the day, no matter how amazing the art is (and there IS some amazing art), it’s still just a freakin’ JPG.
And we can only truly participate and be a valuable member of a couple communities. Believe me, I’ve tried…I’m maxing out at 2 or 3, but I follow about 40 projects on Discord.
Follow. Not keep up.
Which is the same reason we can only hang out in so many metaverse worlds. Or play so many games.
Which is why I’d argue that offering the popular art/community/game/metaverse land quadfecta doesn’t really add that much utility anymore.
The exception would be if that community speaks to you and adds value to your life.
This is why you’ll see more specialization in projects.
Like Bike Club (my own project, BTW), which is tailoring its benefits and community specifically for cyclists.
Or RooTroop, which offers job placement and training for those looking to get into WEB3 and NFT.
Or Blockchain Badlands, which offers benefits and connections for gamers.
These are great communities and projects with real utility and benefits, but only if you’re into those subject matters.
