The problem here — in what I call the Social Token Paradox — is that with this mental model, tokenized communities are incentivized to uphold exclusivity. Let’s work backwards: if you want your community to be valuable, you need your community’s token to go up in price. This makes sense, sure. But to make the token go up in price, you have two choices: you can either increase the price of the token, or you can decrease the number of tokens available to prospective members. Either way, this restricts access to the community and promotes exclusivity, codifying and enforcing a level of scarcity that feels almost at odds with web3’s vision of a truly open Internet.
Some corporations have convinced you, that provided on Ethereum, NFTs are unique and secure and would solely belong to you if you chose to purchase them. Well… surprise: this is nothing but a carefully constructed hoax to make you feel “privileged” by owning a digital art piece. Your trust is being abused and you are being played without even realizing it. You see, because of your blind fascination with these Tokens, you have forgotten what makes up the true valuation of art. You deserve to know the truth and make a decision on your own. Your support of NFT makes modern-day digital artists believe that it is becoming the only way to be appreciated through their work, when in reality they are being blindly involved in a Ponzi scheme.
Artists whose work uses generative adversarial networks (GANs)— algorithms that pit computers against each other to produce original machine-made output approximating the human-made training data—have turned to crypto platforms not only to sell their work, but also to explore ways of critically and creatively engaging the blockchain.
Five NFTs of Andy Warhol’s work have just sold for an eye-watering $3.4 million at auction.
Bright, colourful digital-only art that is selling for millions – who wouldn’t be intrigued?
But my first experience of investing in this world was a nightmare – with far too much time, money and stress wasted on… well, not very much.
Because an NFT doesn’t have a physical representation like a painting, it exists only as a digital asset.
So all I was paying for was a record of ownership – basically, to have my number displayed on a website next to a cartoon cat.