Are NFTs Legit?

I remember?watching?a number of early NFT?launches?-?the experience was a little wild to say the least! Early auctions often amounted to two or three ‘whales’ bidding against each other to buy JPEGs, paying?tens or hundreds of?thousands of dollars?at a time.?

NFTs immediately caught my attention, not just as an entrepreneur and enthusiast of disruptive technology, but as an artist?too.?I’ve remained excited by the possibilities, watching cautiously as the NFT market has grown and gained momentum.

Greater numbers of?creators are launching NFTs and?discerning?investors are?investing in those?that offer genuine utility beyond just being?attractive?JPEG images. The world of NFTs is no longer dominated-by a handful of super-rich ‘whales’.?

But the question remains:?Are NFTs?now?legitimate?

As with most niches and industries, NFTs?could?be considered either legitimate or a scam,?mostly determined by?the people involved.?

?Certainly, there are the unscrupulous people (scammers) who’ve exploited the lack of regulation and?public?knowledge to?run?‘pump and dump’ schemes.?These?opportunists?tend to stir up frenzied?anticipation amongst buyers, heightening demand for their NFTs. They?drive?up prices before?sellingand?exiting?the market, often disappearing without a trace.??

But there are also genuine, talented and innovative creators using blockchain technology to mint NFTs?for?their own artistic creations, which offer genuine value and utility to buyers too.?

Utility?matters

An NFT that?gives?holders?access to exclusive groups, events and courses and which?includes?rare attributes and bonuses will offer genuine utility and value to its owner. Such NFTs will make more money for creators?since?there’s a fairer exchange of value between the buyer and seller.

Even if the NFT itself loses value as an artistic creation, if the owner?perceives?value?in?the bonuses and benefits?that came with it?then they haven’t?lost out.

?Claims of celebrity ownership need to be scrutinized

It’s easy for a creator to air-drop (or gift) an NFT to a famous collector or celebrity in the hope of gaining publicity and attracting?further?buyers. Make sure to?investigate?such claims,?checking if there’s?a genuine link between the creator and the celebrity.?

Just because famous collectors own a particular NFT, it doesn’t imply an endorsement or?guarantee the NFTs will gain value. Having high profile or famous owners doesn’t mean an NFT project is automatically legitimate or destined to succeed.?

?If NFTs are a scam, isn’t ALL art a scam?

It’s easy to say that NFTs are a scam based on your personal perspective.?Theoretically?if?all NFTs?are a scam, then by definition?all art?is a scam too.?

Any art?is worth what someone’s willing to pay for it. The price a buyer will pay is?based on the status?they?perceive in?owning?the artwork?rather?than the value of the materials. The same is true?whether?it’s?the bytes of?data that make up?an NFT,?or the paint on?a?canvas that makes a painting.

Collectability,?scarcity?and significance?determine?the value of?art.

The same logic has applied to art and collectibles for decades –?rare?sneakers, baseball cards, Pokémon cards,?sports cars?or watches?– monetary value is determined by the significance and status that buyers perceive?from owning these?items.?

?All value is perception.

The smart contract enforces value

I’ve been an artist for over 35 years and I’ll soon be launching?my?own?NFT collection.?

NFTs exist within the ledger on?a decentralized blockchainnetwork,?which hosts the digital asset.?The blockchain makes?NFTs?secure and immutable –?they?cannot be duplicated, deleted or changed, only added-to.?

Buyers of my NFTs will get a unique piece of artwork, but?they’ll also receive?ongoing?utility and value via the smart contract that exists behind the scenes on the blockchain.?Thiswill enforce the relationship between me as the creator,?and buyers of my NFTs, ensuring the exchange of value is ongoing.

Choose how to get involved

NFTs are a scam if people run them as a scam?-?NFTs are legitimate if people run them legitimately.?For this reason, it’s important?to proceed responsibly, with caution and curiosity.?

The time to explore and exploit new technologies is when they’re in their infancy. Those who built businesses exploiting the internet 20 years ago are billionaires today. The same will likely be true as NFTs mature.

I’ll be sharing my knowledge and experience as I launch?my NFTs. You can learn by watching and listening as I go through the process.?You?may?even?want to buy one?of my NFTs,?in which case you could benefit from the value and utility that I’m?building into?them.?

I look forward to sharing the journey with you! What do you think of NFT's?