5. Financialization of NFTs

We’re already primed to pay real money for digital goods, be it a skin in Fortnite or an animation pack in Roblox, but the value of those items is limited as they’re only usable within the walled garden of the game. With the arrival of NFTs we’re now able to explore new ways to create, share, buy and sell digital goods, that are both platform agnos... See more

2021 was the year of profile picture (PFP) NFTs. Depending on how you value them, both CryptoPunks and Bored Ape Yacht Club have total market caps (# of NFTs * price per NFT) of around $3 billion each. More than just a disconnected network of owners, though, the humans behind the NFT PFP formed communities, online and IRL. First, they met in Discor... See more

Something similar is currently happening in the virtual world. Online scarcity is possible. Virtual land can be valuable if it provides exclusive access to a unique flow of economic opportunities — in the same way that a domain name can be valuable. As such, virtual land can indeed be scarce. But the fundamentals are tough to read, the number of ne... See more