The NFT itself cannot be a bubble, a pyramid scheme or a scam. Trying to prove that “NFT is a scam” is just as pointless as trying to prove the opposite. NFT is an abstract storage tool. A particular project built on NFT may or may not be a scam in the first place.
NFT is only a part of the crypto universe, which is a complete analogue of the Wild West, where everyone is responsible for himself, people come to this world for the sake of profit and adventure. There is only one thing that can be said with certainty: all schemes whose profitability is based on virality are bound to disappear. There are many ways to lose money using NFT, you don’t even need knowledge for this, the creators of numerous “NFT projects” will tell you everything.
It is extremely difficult to make significant money on speculation with pictures without a long immersion in the topic and the skills of a trader. With commercial talent, it is much easier to attract other people’s money into some kind of collective activity, which has led to the rapid growth of the so-called NFT projects. The vast majority of them repeat the pump & dump fraud scheme, that is, promotion and drain at the peak of growth. You can earn money by participating in such an event if you guess in advance which project will grow and when the drain process will begin. Alas, this scheme works for 95% of such stories, the difference is only in the duration of the peak.
Psychologist Robert Cialdini, who has studied the phenomenon of persuasion, found that the magic of borrowing is based on six principles: mutual benefit, keeping promises, social acceptance, personal liking, scarcity, and persuasiveness.
Philosophy of the NFT
Thirty years ago, a wealthy person was completely sure that bank accounts were not available to third parties. Even the idea that outsiders could get information about the owner of the account seemed absurd. Banking secrecy had an independent value, which became a source of significant profit for individual states. There have always been people in the world who wanted to independently manage the degree of frankness in relations with the fatherland. In early 1989, the international organization FATF was created, which slowly began to bite off pieces of financial privacy, issuing offers “for all the good” and only in rare cases, under the guise of fulfilling these requirements, there was a real seizure of data. After the well-known event of 2001, global surveillance got the opportunity to increase its coverage unhindered, and this concerned finances in the first place, there is nothing more important than information about who is friends with whom, where and how much they trade. To understand where people have not yet forgotten how to keep secrets, take a look at the latest edition of the FATF blacklist. Something the list is too short – Iran and North Korea. This means that almost all countries in the world took the FATF recommendations seriously and began to follow them. And what do these recommendations sound like?
Most interesting points:
- Introduction of anti-money laundering requirements for alternative money transfer systems.
- Strengthening measures to identify customers when transferring funds.
- Reporting Suspicious Transactions Related to Terrorist Financing.
- Ensuring the impossibility of suspicious movements of cash and bearer negotiable instruments across national borders.
None of these requirements can be met for crypto assets. A simple problem: in the context of tightening legislation, is it worth using an uncontrolled system of guaranteed exchange of virtual values? By itself, NFT does not add anything new, it can be only one of the intermediate elements in a multi-step combination, or it can play an independent role. While even a cursory analysis of NFT sales reveals millions of dollars constantly scurrying back and forth, which doesn’t sound like the furious pursuit of the arts or the entertainment of billionaires, it looks even less like a conscious investment.
You can see what is happening on the market using the following resources:
- Current NFT quotes cryptoslam.io
- Similar service icy.tools
- Analysis of flows in popular blockchains, the most revealing indicator is the distribution of the commission, allows you to see where
- life is bubbling pro.nansen.ai
- Custom analytics, SQL+dashboards for Ethereum, Polygon, Binance Smart Chain, Optimism, Gnosis Chain dune.xyz
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