I kind of wish I kept note of everyone who took part in the scam. It will be easy to forget once everyone scrubs their profiles clean.
But even this means they fell for it. There’s very little money in providing access to NFTs in the short term. The money is made by dumping over hyped projects (ex: anything BAYC puts out).
What Shopify probably saw were the transaction amounts that OpenSea was doing, and thought they could jump on that business thinking it was any sort of long term model. They “fell” for it because they thought building a branch of their business out for NFTs was a good idea. Anyone could have seen this was a bad idea, and not a great way to make money, and also something that would die and fall apart in a few months.
This isn't strictly true -- marketplaces take a cut of the fees, and there was a lot of ETH sloshing around at one point.
I don't understand those that are vocal with public "threats" like the above.
I remember friends on Facebook with the same idle threats about those not wearing mask. Or those that voted for Trump.
"I see you! I will remember this!"
Ok.
I unfollowed a lot of people over the last year who had turned to pushing scams. The problem is, my memory is short. I'll soon forget who the scam artists were, and, if they scrub their profiles clean, I'll probably end up following them again.
I think what it really boils down to is that, in the "real world", consumers are willing to pay many, many millions of dollars solely based on provenance. That is, one mediocre painting may be worth a couple hundred dollars, but if it can be validated that the painting was actually painted by some famous (dead) grand master, that painting is now suddenly worth millions of dollars, even though nothing about that painting has changed.
So, what NFT boosters were arguing was that, if people are willing to pay millions of dollars for provenance in the physical world, why not the digital world? In my belief it's that humans have evolved to view 2 distinct physical object, even if they are exactly the same, as separate - an exact copy of a painting so that it is indistinguishable from the original to the human eye would still be a different painting and not have the provenance of the original. For digital jpegs, we don't view them that way - the same image on two different monitors is "the same image". For physicists out there it's kinda like the difference between fermi dirac statistics and bose einstein statistics.
Thus, while I agree that NFTs are all scams, I think we should also be asking the question of why we are willing to assign so much value to provenance in the physical world - that seems crazy to me, too.
For physical objects, scarcity is an unescapable fact. It would be great if we could right-click on some Michelin starred chef's food and have another copy of it, but we can't.
NFTs unnecessarily add artificial scarcity to something that didn't really need it.
The scarcity is not in the image itself, it is in a combination of image + canvas.
I disagree. It is pretty possible now to create a replica of a painting that would be indistinguishable to the human eye from a distance of, say, 2 feet.
Yes, the object could still be distinguished by other means, but presumably the only reason we enjoy art like paintings is for their visual effect - there is literally no other reason to appreciate it.
So my point is that the scarcity for the reason we value it in the first place is actually not an inescapable fact for something like a painting.
Arguably, however, someone wanting to own the original painting by a well regarded artist (say a van Gogh) you're stepping into Veblen goods territory[0] as its a display of wealth, status and prestige. This is what NFTs are trying to achieve
But when we’re talking about very expensive paintings, the physical scarcity of the raw materials plays essentially no role in the valuation. Provenance is everything. Sure, the canvas and paint is scarce, but the cost of canvas and paint is vanishingly small. Make no mistake, provenance is the reason people pay lots of money for original paintings.
Artificial scarcity is merely a signal/status booster in a virtual world where post-abundance is present.
If you are in a VR world and want to mingle with other fellow “tribe members”, what signal do you go off of that’s hard to replicate?
That follows from what you said before. I have yet to see anyone not a scammer who understands them but still thinks they are great.
And I say that as someone who’s vastly more into crypto than the extremely anti-crypto HN.
I was surprised by what NFTs really are... it is so simple it is stupid. It is just some "standard" Solidity/EVM functions that you have to follow when writing your Smart Contract, and then it's an NFT. I don't know why I thought it was going to be something more complicated.
At the end we just made our custom Solidity contract tailored to what we needed. We didn't need the whole NFT functionality (we just needed to store a bunch of hashes in an IFPS file and "imprint" the hash of the file in a Smart Contract Key/Value map. Adding some authentication to operate the smart contract.
The ill-informed association of wealth and genius are age-old and in many ways a necessary ingredient for a bubble to form in the first place.
The same is true on the way down by the way. People nobody listened to because they were incorrectly bearish in a bull market are suddenly entrusted. People who were bullish are disregarded. People believe any scary narrative associated with declining asset prices. This process plays out in a fraction of the time.
Likely that a lot of these "smart" ceos are people that were in the right place at the right time that fortunately had hired the right people that drove their success. To them the internet was a golden goose. Maybe NFTs are the next golden goose? They're running on pure hopium trying to cargo cult their way into their next billion and not really understanding anything about how they got there.
I agree by the way, it's just I hesitate a bit because a lot of people speaking positively of NFTs were too smart to be mindlessly bullish. I suspect some of them thought it would make for positive press and drive some hype. Like with Elon and Bitcoin/Dogecoin. I'm convinced 90% of the stuff he says and does is to keep Tesla and himself in the news.
The connotation that no news is bad news is just such a sad statement on the human condition. If you're in the news for wrong reasons with negative connotations && still maintaining an overall positive image, then WTF is wrong with people?
When a particular individual continues to be theirself in public like this, each instance makes me think less and less of them. It then starts to reflect on the compan[y|ies] they represent. I used to regard Tesla very highly, but no longer. The more they focus on FSD and stop progressing EV cars more in general, the less I care about Tesla. To the point now, I no longer consider them as a car I'd like to buy. I'm still holding onto liking SpaceX notwithstanding the CEO.
An NFT is just an NFT and has no plausible way to be worth anything.
I think he did believe in it, but that's independent of the fact that acting quick on this made him a good chunk of cash with very little effort.
Is that sustainable? of course not. It's also not my particular cup of tea as far as making money goes, but I would hardly say he's "not smart" for getting involved when he did and turning a quick buck.
Why?
Transactions on a few thousand NFTs per day is meaningless (yes volumes that low). So there’s no other option than Shopify actually believing NFTs were a real viable, long term business.
Remember CryptoKitties? The first NFT game before it was called NFTs. Someone made a game where you bred dragons, but in order to do so you had to feed them CryptoKitties. That's the type of stuff I like, not the play-to-earn crap.
The faster we collectively understand the above, the faster we can actually implement in solutions to do what we can to prevent scammers and also lift the shame from people who are victims.
Collectable markets behave fundamentally differently from utility good markets so it's often hard to reason about them when you try to apply logic from one type of market to another.