Like the drain in the NFT world

My good colleague, Jakub Putyło, presented quite well what the NFT is, what it can be used for and how it can be really useful. However, I have the impression that the participation of celebrities, including Doda, Gonciarz and other influencers (the famous Bears) did more harm than good. It turned out that for many people such people – after MAINLY earning money on deals with NFT companies, do not necessarily explain what it is all about.

Seriously, no one in the NFT hype, among influencers, really goes into explaining to people what it is all about. Ordinary people mostly see it as a scam because they don’t understand how an NFT token can make the ownership of what you can just download and save to disk. Blockchain is such an “esoteric” technology, and the assumptions of the NFT so unclear that even the Office of Competition and Consumer Protection took up everything and will check whether the “Bears” promoted by influencers are a partner campaign that has been properly marked and whether it is not simply a fraud.

Jakub Putyło wrote in his text:

If you are an influencer and have a large community, you have a good chance to sell love or other feelings, or you do not know a body part (virtually of course) and earn good money. But what about the grays? I believe that it is unlikely to be profitable for ordinary people in the short term. (…) In the long term, however, the situation changes dramatically. A long time ago, I managed to catch a dozen NFT tokens on free airdrops (editor’s note. Airdrop is an organized action of giving away tokens in return for marketing activities in social media, such as page likes or retweets). (…) You won’t believe my surprise when I unearthed my airdrop wallet (I use a separate metamask wallet for collecting airdrops for security reasons), and its value was around 1000 USD.

In terms of load capacity, an NFT in the form of a “receipt” can be worth a lot. It’s worth taking a look at Cyberpunk 2077 – the titanium watch for the character was “issued” in the game world in a volume of 700 pieces. One such watch was worth about PLN 2,000. Of course, you can hack such an item and distribute it this way. But, the NFT token confirms that this and that copy is truly one that is completely genuine and transferable to another person. What’s more, the value of such a watch together with the token may fluctuate – today it costs 2,000 zlotys, but in some time it can be 5,000 and 10,000 zlotys – depending on the economic situation. However, the NFT token is a certainty that a given copy is fully authentic.

Crypto-art takes a lot of energy

Although some sources say that the operations needed to operate NFT tokens draw 70% of energy from clean sources, such a value still seems absurd. Therefore, people who are particularly concerned about the environment consider NFT to be one of the worst inventions of mankind. The issue of tokens and their sale is based on the Ethereum cryptocurrency, hence a lot of computing power is needed – and thus a lot of electricity. Much too much for standard forms of determining the ownership of memes, GIFs, graphics, YouTube videos or even avatars with “Teddy Bears”, such as those promoted by Krzysztof Gonciarz or Magda Gessler

For this reason, UOKiK is taking a closer look at the action with Fancy Bear Metaclub. It was attended by the above-mentioned celebrities who did not mark their posts and new profile photos as sponsored materials. It is worth pointing out that Magda Gessler explained that this “teddy bear” belongs to her as an NFT and does not advertise anything in her opinion. These types of investor “clubs” are very often based on community building. But, here’s the trap – there are many examples of financial pyramids, which were also generally about communities: to distract people from the fact that they were simply cheated.

Is NFT unequivocally bad?

I can’t say that. This technology, the idea arose for a specific reason – wealthy people want to invest in innovative things. This is ensured by Blockchain technology and – in this case – the Ethereum cryptocurrency infrastructure. It is worth emphasizing, however, that an atmosphere for all sorts of scams can create around each idea. I am not talking about Fancy Bears Metaclub here, because I do not have the competence to decide on the legality of the venture. Until the decision of the relevant services, this cannot be said.

It is a pity, however, that these influencers do not spend time explaining what NFT really is and what it can be used for. Merely “having” means nothing to anyone. It is worth saying why and what are the forecasts for the future. As for the latter – interest in the NFT collections and the NFT itself may drop at any moment when other fashionable technology is found. Then what about such heavily pumped communities?

About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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