The moment NFTs cross that threshold, and the thousands of new projects that seem to emerge every week outstrip demand, prices are likely to plummet. NFTs include a digital animation of a Coca-Cola fridge and a branded digital jacket that your avatar can wear on a virtual reality platform called Decentraland. Those reading this will have their own opinions on what makes an NFT project succeed or fail and whether those "rules" will change over time. Before the advent of NFTs, there was no way to guarantee that an exclusive edition of a virtual good was truly unique.
Just as many people didn't understand how blockchain worked for media content in the early days, many people buying NFTs today may not understand that they might be buying less than they think. But once you get past the technical details of NFTs, putting artwork on the blockchain is like putting it in an auction catalogue. Whale Shark, which owns more than 210,000 NFTs and was responsible for the 99.9ailure prediction above, will have some gold in the future in that collection, but for every CryptoPunk there's a Polkamon, for every Stoner Cats there's a CovidPunks. People are creating NFTs of artists' works without asking permission or even notifying the artists.
This may include, for example, requiring the original artist or seller to get a percentage of any subsequent sale, a unique feature of NFTs that could prove revolutionary. Most of these assets are exposed to the public on NFT sales platforms, so anyone can take a screenshot or possibly make a copy. Meanwhile, most of the companies and platforms used to sell NFTs today are no more innovative than any random poster-selling website. It is far from clear that, by the mere fact that a user purchases an NFT, that user is considered to be subsequently bound by the terms of sale initially associated with the NFT.
However, NFTs are not a type of cryptocurrency, and some believe that this investment is being driven primarily by the greater fool theory, a theory that says you can make money on anything if you can find a greater fool who will pay more than you. Buying NFTs at their ex-factory price ensures that you snatch them up for their lowest possible value, before they hit the resale market. This creates huge financial gains and a greater sense of community for those who buy and maintain these NFTs. The easiest way to succeed with an NFT project is to get a celebrity endorsement, preferably a world champion footballer, basketball player or ice hockey player.
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