NFTs began as aimless gambling. They should return to their roots – Sydney Morning Herald

Most of these projects come with a promise of an experience beyond simply buying a unique piece of art. For example, Bored Apes holders are admitted to special clubs and communities, given first access to other NFT projects, or promised entry to ambitious metaverse projects.

On one hand, these promises are admirable and understandable. If you bought equity in a company, wouldnt you be worried if it never innovated or updated investors on its performance?

However, on the other hand, the vast majority of NFT projects over-promise and under-deliver. For example, a project called Players Only founded last year by former NBA players raised $US1.4 million ($2 million) by promising NFT owners autographed merchandise and meetings with the players.

Six months later, the project was shuttered, with users alleging they had never received any signed merchandise and players had not shown up to meetings.

These stories are strewn across the NFT space. Creators raise millions of dollars on promises their project will be the next big thing, buyers believe them and are left holding the bag when the creators fail to deliver. Its easy to see why so many people take a rightfully dim view of NFTs.

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Advocates say the industry is in its infancy and finding its footing. They promise the technology behind NFTs will be invaluable in our increasingly digital future, and that soon everyone will be linking their various online assets to the blockchain. Whether this is true remains to be seen, and should be viewed with scepticism.

Meanwhile, NFT purveyors should take a leaf from the Book of CryptoKitty, and stop pretending it is anything more than a speculative asset for punters to gamble on.

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NFTs began as aimless gambling. They should return to their roots - Sydney Morning Herald