I've noticed discussions on NFTs, airdrops and fungible tokens lately.
Here's my perspective: NFTs are designed to foster tight-knit communities because their non-fungibility reduces the velocity and distribution of their holder base. So, if you aim to build a close-knit group, NFTs are suitable. However, the risk/reward of holding an NFT for a long time may decrease as holders seek new buyers at higher price point. And airdrops will stop being profitable.
Fungible tokens, on the other hand, enhance velocity, attention, and distribution of the holder base but also face competition in the global attention marketplace with millions of other tokens. This competition makes it challenging to gain and retain attention over time.
For most NFT collections, I foresee them launching tokens. As for general meme coins, I expect to see them launching NFTs to cultivate a dedicated community but might be too late.
I believe the real potential lies in blurring the lines between the two, such that NFT holders are incentivized to maintain their holdings while also having a tradable token. (404s, spl22s)
Here's my perspective: NFTs are designed to foster tight-knit communities because their non-fungibility reduces the velocity and distribution of their holder base. So, if you aim to build a close-knit group, NFTs are suitable. However, the risk/reward of holding an NFT for a long time may decrease as holders seek new buyers at higher price point. And airdrops will stop being profitable.
Fungible tokens, on the other hand, enhance velocity, attention, and distribution of the holder base but also face competition in the global attention marketplace with millions of other tokens. This competition makes it challenging to gain and retain attention over time.
For most NFT collections, I foresee them launching tokens. As for general meme coins, I expect to see them launching NFTs to cultivate a dedicated community but might be too late.
I believe the real potential lies in blurring the lines between the two, such that NFT holders are incentivized to maintain their holdings while also having a tradable token. (404s, spl22s)
Creating an incentive equilibrium between NFT holders and token holders is where the magic lies
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