Thread by @DECA__

🧵(1 / 10)
If you enjoyed yesterday's thread, that was really just a starter. Here I draw out the real issues with NFTs, taken from @FoldableHuman 's video.

If you doubt my intentions, read my bio.

Once again I have to warn you: BIG #FUD AHEAD
Not for the faint of heart...

(2 / 10) Toxic positivity: I will admit, negative comments are often dismissed as FUD, NGMI, HFSP. Positive comments are biased, as extremely incentive driven. Slogans like "Not financial advice" or "Probably nothing" have become meaningless.

(3 / 10) Vulnerability of tokens pointing to images (or other data) stored on off-chain servers and accessible through HTTP.
Even if stored on peer-to-peer servers like IPFS, tokens are not cryptographically linked to the data.

(3b / 10) ...meaning that the images could be replaced in the back-end. "The IPFS address for any given media token can be effortlessly minted onto another competing chain".

(4 / 10) Derivative and identical projects - increasing sloppiness and lack of underlying value deviantart.com/team/journal/D…

(5 / 10) Discord is not an appropriate platform / does not serve the needs of the space, e.g. scam DMs. In response, we are seeing web3 platforms like @viamirror and @withFND ♥️

(6 / 10) NFT market wash trading and illicit value transactions account for less than 0.01% of total market #FUD quashed
blog.chainalysis.com/reports/2022-c… ...but wil L2s low fees make this a much more common practice?

(7 / 10) NFT project founders are incentivised to fail, the payday for failure makes it irrational to succeed!

e.g. if only 1k out of 10k tokens get minted for $300 each, the project dies in its tracks, but the founder walks away with $300k, no further work needed.

(8 / 10) The typical buyer is (brace yourself) socially isolated, responsive to memes, has little or no business experience (unable to spot unrealistic claims), insecure about their lack of knowledge, susceptible to flattery, anxious about their financial future, fixated on money

(8b / 10) "People who feel their opportunities shrinking... who have become isolated by social media and a global pandemic... people pressured by the casualization of work as jobs are dissolved into the gig economy, and want to believe that escape is just that easy."

(8c / 10) "All you gotta do is bet on the right Discord and you might be air-dropped the next new hotness."

(8d / 10) They are ethically shielded by simplistic libertarian claims related to freedom, privacy and inflation, which justify them being morally blind about wash trading, front-running, insider trading, market manipulation such as inflating resale price (floor) or pumps&dumps.

(8e / 10) Others are instead are simply nihilistic, believing that both the traditional paradigm and #web3 are just as corrupt and unfair, so there is no ethical responsibility.

(9 / 10) Conclusion: If you're still with me you must be a critical thinker. Here are a few simple truths:

- We are in #ICO-style bubble territory
- 98% of projects will crash
- 98% of buyers will get #rekt
- but...

(10 / 10)
...but the route concept IS revolutionary. The blue chip projects WILL become massive franchises. And the NFT space as a whole CAN account for what Marc Andressen (@a16z) referred to as “the original sin of the internet”, forming a new medium of experience.