Is NFT a pyramid scheme for technical elites- Napkin

Jiedao jdon 2021-10-14 06:39:52

Whenever new technology bubbles emerge , The end result is abuse . When people are dazzled by the latest shiny things , There are usually differences of faith . For those fans who are inspired to see bubbles bigger and bigger , They will call laymen “ Regulator 、 Haters 、 Skeptics 、 loser 、 A closed mind ” etc. .

The current hot technology is NFT( Irreplaceable tokens ), It depends on whether you are talking to enthusiasts or skeptics , This may be TechnoChrist The second appearance of , It may also be the biggest scam since the cryptocurrency scam was invented .

today , I want to cross this very difficult middle ground , The promise of appreciating the technology , At the same time, the of some current iterations are pointed out ( Very obvious ) defects . So , I'm with excellent Kushaan Shah cooperation , He wrote a paper called Mind Meld Of A marketing focused Newsletter , I found it very valuable last year . We wrote the following article together .

We think the most famous NFT project , Such as Bored Ape Yacht Club and Pudgy Penguins, With multi-level marketing companies (MLM) It's very similar in structure , So they will suffer the same failure . Investors should be extra cautious when evaluating this emerging asset class . 


MLM features

The growth of MLM can take two ways . 

  1. They can provide better products for local dealers / Marketing support , To help them sell more goods , perhaps  
  2. They can recruit additional dealers . 

Enterprises grow the fastest 、 The lowest cost way is always the option 2. 

MLM through what they call “ Offline ” To motivate recruitment behavior . This is a MLM gobbledygook, It means when an existing dealer recruits a new dealer , They will get some kind of financial compensation —— Usually the person's income %. Guess what ? When that new employee attracts a newer person to become a distributor , People at the top will also get their income 1% . therefore , The term “ Offline ”—— You can learn from all your children 、 Grandchildren and everyone's “ Line ” Withdraw all income from . 

Be careful : This is exactly how the real estate business operates . Keller Williams pioneered it , Everyone else copied it . Real estate agents now sell houses in addition to , You can also get paid by recruiting other agents . This is why it is so difficult to regulate MLM ! They are just a few shadows away from legitimacy , Therefore, it is difficult to establish specific regulations . The line between a robust growth strategy and an unsustainable pyramid program is very, very fine .

This recruitment method is a very effective method for the growth of the whole business , So that compared with selling their own products , Distributors usually get more revenue by cultivating new believers . 


NFT What is the ? 

NFT Sport was once simply derided as “ Overpriced pictures jpeg”. 2021 Beginning of the year ,NFT Become more mainstream , But the benefits of digital ownership are still difficult to define .

Several key components of MLM :

  1. Recruiting new believers is the key to growth : The growth of MLM depends on existing sellers / Convince new people that the product is the future .
  2. Sales community , Additional products : To help do this , They convinced them that they would gain unique social capital from a group of similar people .
  3. Convince them that they have something : The language of ownership is tempting ( Especially for Americans ). Instead of working for this person , MLM allows you to set up your own company . 
  4. Offline : By persuading people that they are the owners of the new community , You will share their financial success .

NFT PFP The items have significant similarities to the list above . 

  1. Recruiting new believers is the key to growth : These pictures only have the value that others say . In support of cryptopunk theory , You drive up the value of your assets . When the people supporting your project are technical celebrities , This is especially useful . Be careful : A good example is a major technology expert CEO Call him Cryptopunk by “ Digital Mona Lisa ”, And in Podcast Talk about it .
  2. Sales community , Additional products : You often hear such anecdotes :“ When I put my [PFP Project selection ] As a picture of my profile , I added hundreds of fans . I like to Discord Interact with people and learn from them .”  Have PFP Make you feel part of something . 
  3. Convince them they have something : The language is NFT Part of the core value proposition . You have JPEG! It is unclear whether this is important in the real world , But this is true for the feasibility of these projects . 
  4. Offline : The analogy here is even worse .PFP The founding team skimmed from the top % To control the offline structure . However , personal JPEG The holder does not actually receive direct compensation from the recruitment of new believers . Here's the irony , Due to the lack of offline , The right MLM may bring more benefits to early believers than PFP Better return on the project .

To be fair , This metaphor is not perfect !MLM The losers are those who enter the game late and buy more than their income , But this is related to NFT The losers are different , The latter bought at the top and had to sell at a loss . In any case , Will let people with less knowledge know the bottom . 


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