Generally, the value of NFTs is determined solely by what the market will bear. If you buy one as an investment, you’re betting that someone will eventually be willing to pay more than you paid for it.
However, an NFT can also be valuable in other ways. Beyond digital scarcity innovation, some believe NFTs have the potential to change the relationship between content creators and consumers, but this is not to say that all NFTs will achieve this lofty goal. In fact, the vast majority of NFT projects are doomed to fail. You can also check out nft development services malaysia here.
Most NFT projects and brands fail because their creators are unable to properly execute their roadmap in order to build a long-term and sustainable business. Many NFT projects are nothing more than a quick cash grab, with no real value or utility backing the digital asset. A majority of NFTs and other various digital assets will crash hard, similar to the internet craze crash in 2000! Not just temporarily, but indefinitely. The issue with the NFT market is that supply currently outnumbers demand, as does the lack of actual value and utility underpinning most NFTs.
As large corporations, brands, and innovators begin to investigate and implement NFTs, many will realise what a valuable NFT looks like in comparison to all of the worthless NFTs currently flooding the markets. Many modern-day NFT creators and investors are unaware that NFTs are a technological platform that can be used to either build a brand from the ground up or add additional value, trust, and transparency to existing brands.
Instead, many NFT creators have simply produced a picture with little to no actual value or utility. They aren’t building a brand, developing a strong intellectual property, or offering anything else to their customers besides the NFT. Furthermore, many of the media headlines about NFTs are about people making huge profits by buying and selling NFTs. This gives the impression that NFTs are either a get-rich-quick scheme or that any NFT can make you a million dollars, which is simply untrue to some extent.
Here are some reasons why there are arguments against the longevity of NFTs:
- NFTs are a fad.
- NFTs are simply just JPEG
- NFTs are a scam
- NFTs are not environmental friendly
- NFTs are meant for the rich
- NFTs technology is slow and difficult to be used by an average person
If you study enough bad NFT projects, you can get a sense of whether a project has the potential to build a community and a real brand, or if it will fail. In the end, you’re investing in the person who created the NFT brand, not the NFT itself.
Similarly, once you’ve learned what makes a good NFT project, you’ll be able to tell the difference between a bad investment and a potentially good NFT.
Be wary of imitators and scammers in a fast-growing and loosely regulated market. Platforms frequently have verified accounts for well-known creators, which can assist you in selecting a reliable NFT brand.