Decrypt the NFT Market: Connection Drives Economic Demand - A Meta-Analysis and Reflection

Too Long; Didn't Read

This meta-analysis probes into the strategic insights gathered from some eminent sector thought leaders. Their general views are that NFTs are proving to be culturally game-changing. It also addresses why some of the most valuable ones are being priced millions of dollars while others yield a pittance. One of the rarest iterations resold on October 20 for $2.7M; their derivative Mutant Apes, selling out for $96M in one hour before, at least temporarily, doubling in price; and the Degenerate Apes. Meanwhile, Fred Ehrsam, a cofounder of Coinbase, believes that 90% of them will be worthless within 5 years. What makes the difference between bonanza and dud? Is it simply “being in the right circle, having the right information at the right time”? Or is there more to it than that? Culture eats strategy for breakfast. Don’t Follow the Suits, Follow the Weirdos. Fame hath its privileges and a comparable dynamic exists within crypto culture. There is a strong human urge to belong. This also drives demand. The most potent connective tissue holding a community together is that of a powerful shared story. Potent and valuable. A powerful story delivers a Network Effect on steroids.

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