NFT: A Tricky Market
Some could say NFTs are just bubbles, but to me NFTs resemble the social media movements that started in early to mid 2000s. I think it is a social and techncial trend that will grow more and more.
However, I think it is a really tricky market. I don’t think Opensea’s new valuation is a bubble, but I think for most of other people, creating a company related to NFTs will be really challenging. When there was a social media movement, so many companies tried to build a variant of it. 10–15 years have now passed, and there are very few social media platforms and the majority have died out and consolidated. Mostly the first movers have survived. Facebook, Twitter, Pinterest, Instagram (again Facebook owned), Snapchat etc. Even Facebook is now dying and the company is relying its growth on Instagram.
Rather than creating NFTs or NFT related companies, a better idea would be to predict adjacent markets that will grow due to NFTs. Canva, a company that provides easy to use photoshop experience with its product is a huge benfitter of social media. Social media analytics platforms also benefitted a bit. Social media also changed a lot of shopping behavior, especially for female users.
NFTs will make new generations really used to digital asset. Then one should pay close attention to how digital asset markets evolve and look for opportunities around it. Personally, I do not plan to put in much time or effort into this market. The market is extremely hard to navigate and it will be rather a distraction. Navigating the NFT market seems to require too much luck.