The Enduring Power of NFT Communities: Weathering Both Love and Hate

Love ’em or hate ’em, NFTs can survive thanks to the communities that drive themNFTs have suffered everything from ridicule and scams to a broad dip in demand due to the crypto winter. Sometimes it almost feels like some of the projects in the space are kept going simply on hopes and dreams. Most people are holding on to their NFTs regardless of their monetary value, according to Yat Siu, co-founder and executive chairman of Animoca Brands. Making money from NFTs validates their holders’ conviction, but Siu thinks there are more important factors driving the persistent ownership. “It’s not a crazy idea, but NFTs make [the experience] more powerful by bonding them together.

Love ’em or hate ’em, NFTs can survive thanks to the communities that drive them.

NFTs have faced ridicule, scams, and a dip in demand during the crypto winter. Some may argue that some projects in the space continue on purely through hope and dreams. Yet, despite these challenges, the sector has persisted, and recent momentum in the crypto market has sparked interest in NFTs once again.

While NFTs may be synonymous with silly apes, rocks, and JPEGs that sell for millions, there is a widespread belief in the industry that there is significant underlying value in the concept and its various use cases. According to Ilja Moisejevs, co-founder and CEO of NFT marketplace Tensor, “NFTs are just cultural artifacts of crypto at this point. When people have fun, it’s easier with a JPEG than just a token.”

Despite the monetary value attached to NFTs, most people are holding onto their digital assets regardless. Yat Siu, co-founder and executive chairman of Animoca Brands, believes that there are deeper motivations for this persistent ownership. He explains, “Making money from NFTs validates their holders’ conviction, but there are more important factors at play. Similar to the reason people buy diamonds, there is a sense of value in investing in NFTs because it enhances social standing and makes users look good.”

Moisejevs agrees, stating, “Some NFT communities are essentially just like fraternity clubs: people having fun with similar interests. NFTs simply amplify this experience by bonding them together. You either lose money together or make money together.”

It appears that more people are eager to join the “make money together” group. In the past 30 days, there have been approximately 120,000 more NFT buyers than sellers, and sales volumes have increased by 72.7% to around $1.66 billion, reports NFT aggregator CryptoSlam. This surge in activity suggests that NFTs may have the staying power to survive any challenges thrown their way, thanks to the strong communities that drive them.

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Kira Kim

Kira Kim is a science journalist with a background in biology and a passion for environmental issues. She is known for her clear and concise writing, as well as her ability to bring complex scientific concepts to life for a general audience.

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