NFT is a pyramid scheme and people are already losing money on it

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Leon
Posts: 8
Joined: 27 May 2021, 15:03

NFT is a pyramid scheme and people are already losing money on it

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Photographers, filmmakers, and digital artists are going out of their way to churn out NFTs in an effort to get rich quick, but in fact only fuel the flow of money from creators to tech billionaires. Why have so many people bought into the idea that something is valuable simply because everyone says so?
If you haven't created your first NFT yet and are wondering how it works, then in a nutshell the process looks like this: you start a wallet, buy some Ethereum and choose a platform. Then you take one of your digital creations and pay roughly $ 70-100 to "mint" that piece into a Non-Fungible Token. Choose a starting price and wait for bids to start coming in. You can even prepare for an auction to create buzz.
One of the best places to get started with NFT is at Rarible, which is confusing with its crypto aesthetic, crafted from a nightmarish mixture of randomness and memes. The site looks like a terrifying hybrid of children's cartoons and 4chan.
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If you're one of the tech geeks or have friends who love being at the forefront of progress, then you might get an invite to a platform like Foundation.app. Sites like these create a certain level of exclusivity, they provide filtering to ensure that only a limited number of people can transfer their work to the NFT. If you do not know anyone with an invite, then you have to go to a special channel on the Foundation Discord server and ask him politely; keep in mind that the channel is besieged by people with a lost profit syndrome (FOMO, Fear of missing out), so requests for invites appear every 30 seconds.
On Foundation.app, you need an invitation. You will need to upload a video on Nifty Gateway to let the site owners know that you are valuable enough to allow you to sell your work on it.
Whichever platform you choose, you cannot ignore the fact that many people are selling a bunch of dubious digital works for absurdly large sums. This is very motivating to do this too.
Motivation is such an integral part of these platforms that many of the pieces on sale reflect this in their aesthetics. Creations with the letters FOMO are ubiquitous in this sea of ​​urge to buy, sell and be sold. This feeling of being late getting on board, of being the start of something new, is the foundation of everything NFT has to offer, and it is a marketing masterpiece. Almost every tweet announcing an auction you need to participate in reminds you that the artwork will only sell for a short period of time. FOMO is so powerful that you will start to feel like you are already losing money because you still haven't signed up.
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Top sellers on Rarible.com in the last 24 hours. $ 60.15ETH is just over $ 100,000 at the time of writing.

NFT tokens provide a new way of ownership and an exciting opportunity to sell all kinds of art. As a concept, they have attractive aspects, for example, when creating a token, you can specify the commission that you will receive each time it is sold in the future (usually about 10%). Cryptocurrencies offer an alternative to the economic system run by Wall Street bankers, politicians and insider trading, promising to democratize economic structures to some extent, increasing freedom and flexibility. This new rebellious mindset also influences the artwork that appears to be an endless celebration of how the new system will redistribute power.
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Leon
Posts: 8
Joined: 27 May 2021, 15:03

Re: NFT is a pyramid scheme and people are already losing money on it

Fascinated Audience

To many, this looks like a way to destroy the existing regime; but if you look closely, you can understand that this is just an extreme manifestation of neoliberalism. Instead of being persuaded to buy items you don't need, you are being persuaded to buy an imaginary optimism based on universal admiration. In addition, our generation has the conviction that each of us is special, which means that our creativity should have an innate value; NFT is our chance to sell it.
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One of the Foundation.app auctions at the time of writing.

This rhetoric is compelling, but a little naive at times. One day I came across a statement accompanying an upcoming drop (ie the start of an auction) written by a fairly well-known digital artist. He, like many other NFT creators, associates the concept of NFT with the piece itself. Here's how he described his animation of a futuristic character and his flying car: “NFT is a battle call for creators. A call to explore, dream, break into a world where our solitary dreams become a collective reality. " He adds, “Collecting and creating an NFT is not an act of defiance, but a dedication to a historic moment of movement that is changing our lives.”
I don't think anything could be more 'meta' than simulated ownership a digital copy of a work of art describing itself as a dedication to the historical moment of the cultural and economic movement. And the author of the statement “forgets” that the platforms are owned by such millionaires as the Winklevoss twins, known to have sued Mark Zuckerberg for stealing their Facebook idea.

Oh, this FOMO
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“Buy, sell and discover rare digital goods,” is the slogan of OpenSea.io. If you are wondering how a digital object can be rare, then you are asking the right question. In the last century, the philosopher Walter Benjamin explored the relationship between the authenticity of art and its uniqueness, as well as the problem of imbalance caused by photography and mechanical reproduction of works. I don’t know what Benjamin would say about NFT, but this conflict between our love of authenticity and the virtual world’s inability to provide an alternative is not resolved by the ownership of tokens of dubious origins. Digital scarcity is pretense.
Society is becoming less physical and more virtual, so there is no coincidence that NFTs gained popularity at a time when our social interactions were minimally tangible. In addition, the creative industries now play a significant role in the economies of large countries, and yet, despite the perceived value of the contribution of artists, their employment is largely unstable (which in the eyes of society has become an attractive trait), so they often have to do the usual work to earn money. monotonous work. The carrot that attracts people to NFT is incredibly attractive: let's all sell something virtually so we can collectively pretend that someone else now owns it.
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BlackOff
Posts: 24
Joined: 08 May 2021, 06:52

Re: NFT is a pyramid scheme and people are already losing money on it

For me, NFT is a way to monetize the audience: some popular blogger simply creates something and promotes it among his audience, and they, making bets, are fighting for the "autograph" of their favorite blogger.
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DimanBo
Posts: 15
Joined: 03 Jun 2021, 15:34

Re: NFT is a pyramid scheme and people are already losing money on it

This would be the case if it was a patreon. The usual possibilities are enough.
Cryptocurrencies, blockchain, mathematical proof of "uniqueness" and the hype itself, which is more than just art, says that the scheme is still a little more complicated.
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KrisMor
Posts: 39
Joined: 04 May 2021, 10:23

Re: NFT is a pyramid scheme and people are already losing money on it

Well, NFT actually solves the problem of authenticity, just imagine an hour has a unique ball signed by Maradona, how can you prove that it was he who signed it? We need complex expertise, money for all this (roughly speaking, the threshold of entry into collecting). and here is the mate proof and all the goodies of the blockchain. Roughly speaking, now everyone can become a collector (the entry threshold is minimal).
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Adel
Posts: 5
Joined: 08 May 2021, 06:54

Re: NFT is a pyramid scheme and people are already losing money on it

I seem to have missed something ... Or maybe you missed something.
NFT is a stupid link store. There is no control over what is under the link.
So this is not an autographed ball. This is an indication that the autographed ball is there. Here are just no problems to remove the ball from where it lies at the time of the creation of the token - no.
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RazArt
Posts: 14
Joined: 04 May 2021, 07:15

Re: NFT is a pyramid scheme and people are already losing money on it

Moreover, you can delete the link altogether or place something else, more interesting / unexpected / forbidden under the link
Do I understand correctly that the token is stupidly attached to the link and does not know anything about the content?
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GrayRabbit
Posts: 21
Joined: 04 May 2021, 15:25

Re: NFT is a pyramid scheme and people are already losing money on it

Not only, there may be a hash of some file, for example, that is being sold.
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KrisMor
Posts: 39
Joined: 04 May 2021, 10:23

Re: NFT is a pyramid scheme and people are already losing money on it

It seems that I, for some reason, I thought that the digital product (file) with the work itself would be placed on the blockchain. If there is a link, then you are right there is practically no benefit.
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Avaya
Posts: 18
Joined: 08 May 2021, 06:06

Re: NFT is a pyramid scheme and people are already losing money on it

excuse me, but the url of the link to the picture itself on IPFS is not a random url, as far as I understand the url contains the hash from the picture, and accordingly you will NOT be able to slip another picture with the same hash into NFT, tk. the other picture will have a different hash. This is the meaning of the hash.
and yes, tell me how exactly are you going to delete the file from IPFS?
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