NFT – Any value apart from speculation?
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NFT – Any value apart from speculation?
Social signaling, community alignment, pseudonymity – today. Secondary market for game assets, cross-application possessions integration, 3D spaces NFT decoration – in 5 years

Who I am?

Pudgy Penguin proud holder 0.045 ETH => 4 ETH => 1.2 ETH
NFT amateur flipper with 15,000$ turnover
Founder at buildship.dev – we democratize custom NFT smart-contracts
Selling BTC since 2014

What are NFT?

What creates value today, and what we expect tomorrow?

Today
  • Status signaling
  • Community alignment
  • Pseudonymity
Future
  • Cross-application items
  • Secondary market for game assets
  • VR Decoration for public spaces
 

DISCLAIMER

  • Futurology is astrology, I am 100% wrong, this is not financial advice, all NFTs will cost 0$
  • All of this is complete speculation (but without putting my money where my mouth is)
  • Only try to notice interesting stuff and leave out the obvious use cases – look for 10x improvements instead of marginal ones, where NFTs are just for hype

Signaling

This punk was NOT sold for 2,500 ETH
 
  • I have hundreds of thousands of USD
  • And am ready to spend them on worthless JPEG
  • Because “I know” this JPEG is significant for the industry
 

Community alignment

 
  • We both invested money into this, we are tied together now.
  • I help you – I help myself. I hurt you – I hurt myself.
  • Starts with money, but money is irrelevant now. I help you without anything in return
 

Pseudonymity

  • Create new identities on a whim
  • Completely disconnected from real-world person
  • Has it’s own reputation (good/bad/smart/beefy)
  • Doesn’t matter who the person is, which gender, which skin color
  • Before NFT, this was easy to copy, and easy to create new one – so pseudonyms were worthless
  • Now you can “create” an expensive one, and make people listen to you
 

Metaverse

Fast-forward 5 years into future
 
What's Metaverse?
Metaverse is... VR social network?
Metaverse is... immersive 3D world?
Metaverse is... massive online multiplayer?
Metaverse is... shared workspace?
 
  • We have all these pieces already
  • Metaverse is the glue between them
  • Bringing back the concept of “my possession”
  • Ownership is the right to use, sell and destroy
Can you demand GTA V to render your character with NFT accessories you own?

Secondary market for in-game assets

Why pay 50$ for the skin to Epic Games, if you can buy from other players?
 
Assets are issued once with limited supply
Buyers may resell when they stop using it
You can rent asset to play if owner doesn’t need it
We already see this in Axie Infinity with Gields
 

Cross-application objects

Do I own stuff that I buy online?
 
Are YouTube followers mine or YouTube’s?
Does my Instagram photo belong to me?
Why can’t I bring my GTA Online character into my Fortnite session?

VR Spaces Decoration

I want to have the most expensive NFT in my VR city!
 
  • VR cities are much easier to create than real cities
  • People need to know which ones are worth to visit
  • Artistic value of decoration is secondary here

Summary

  • Value today is low, but existent
  • Maybe 90% of that comes from speculation on the future value
  • Future value comes from “metaverse” vision – digital ownership
  • By 2030, nobody will call it “metaverse”, we don’t call internet “The Internet”