Why Buy NFTs?

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Prices are down, sentiment is low, and the whole world is laughing at us.

The headlines read: 95% of NFTs are worthless. Finally, people think, the end has come for this craze, the one that polarized Western society for two years and drove people into different camps: Those that believed in the power of digital ownership and the right-click-savers.

If you’re still here, you’re one of the few remaining. The die-hards, the troopers.

With all that said, why would you, or anyone, buy non-fungible tokens today? We are amid a long bear market in an emerging technological sector. Everything — even that remaining 5% of NFTs that still technically have value — could go to zero over the next few years.

So why buy?

That’s what this guide is here for. Unlike what the pundits and the outsiders say (and they, we believe, are wrong), NFTs have inherent value. The technology is in the middle of revolutionizing countless industries, from sports to cars to music to art. They democratize what used to be the playgrounds for the rich. Now, everyone can join.

Here, we’ll cover the five main reasons to buy NFTs, taking account the fall in floor prices, the lower vibes, and the laughter from your everyday person who thinks this all was just a bubble ready to burst.

The good news: No matter what your budget is, you can act on these reasons today. And even better: They speak to the heart of NFT collecting rather than just the dollars and cents.

Ready? Let’s roll.

For the Art

On August 10th, popular animator DeeKay Kwon announced his first open edition: a collaboration with pseudonymous art collector Cozomo d’ Medici. The news quickly lit the NFT space on fire. DeeKay is known for producing some of the smoothest animated artworks, and owning one of his pieces has been a dream for many.

The only problem: Prices are typically out of reach. DeeKay artworks typically fetch in the thousands of dollars, and those are just for limited editions. His 1/1s hold much higher values. His open edition collaboration with Cozomo would cost just 0.01 ETH or around $18, and the crypto infrastructure used for the mint would allow interested buyers to purchase with a credit or debit card.

The 24-hour mint was an astounding success. Over 70,000 NFTs were minted, and today the twin collections (one of the NFTs involved an ETH logo, the other BTC) hold 59% unique ownership rates. This means that the majority of people who minted into one of the collections own just one NFT. The drop was a collector’s dream.

Art has historically been a playground for the rich. With their vast pool of resources, they purchase pieces to put on display in their houses for their friends to see. Non-fungible tokens, however, have changed all of that.

From blockchain to blockchain, marketplace to marketplace, crypto to crypto, there has never been so much art available at such low a price. There is something for practically every budget, for those with millions of dollars in their digital wallet to those with just $10 to spend. The quality may vary, sure, but the art is there.

NFTs are such a powerful force in the art world that art-only marketplaces have sprung up all over internet. SuperRare, Foundation, Rarible, Nifty Gateway. Even major auction houses such as Sotheby’s and Christie’s — those staid old institutions that have normally been the barriers to art collecting in the past — have their own NFT marketplaces.

And there’s the other side of the sword: All these purchases support artists, who then can make a living doing what they love.

In many cases, these artists are from less prosperous parts of the world. 0.2 ETH may not mean much to someone in America or Europe, but for someone in the Philippines, that sum goes a long way. Then, artists create more art.

And the world gets a little richer.

So, if we were going to lead with one reason to buy NFTs, it would be this: Buy a digital art piece you love from an artist you want to support. Even if it goes to zero, you’ll be happy with what you bought.

For the Culture

Speculation is an undeniable aspect of Web3. From cryptocurrency to NFTs, people love the gambling aspect of the space. After all, who doesn’t like the idea of buying a token and receiving a return of 1000x in just a few years (or in the case of NFTs, a few months)?

But there are principles behind Web3 as well, something that often gets lost. Decentralization, trustless transactions, transparency, democracy, openness. And the fun as well — the crucial part of participating in a sector of technology that could revolutionize the world.

That brings us to the NFT culture collection, one that goes beyond the Apes and the 3D mashups of humanoids that can be used solely as profile pictures on social media. These collections celebrate the shared values of those users still here in Web3, braving the storm.

Take for instance, The Memes. Created by 6529, an early cryptocurrency investor and NFT maxi, this collection draws on partnerships with top Web3 artists to create images based on themes relevant to the NFT space. A quick glance will show pieces celebrating the “Freedom to Transact,” pushing the message of “Not Your Keys, Not Your Coins,” even hallmarking the infamous “GM” that NFT culture has given birth to.

While every cycle has its meta, culture is generally here to stay. And the floor prices often show that. While The Memes has fluctuated in its floor price like every other collection, it has moved around a lot less, even as new editions are rolled out every week.

Displaying a culture NFT in your wallet is akin to saying to the world: This is what I believe and stand for. More than the dollars and cents, the money that can be made from being early, the gambles on the latest derivative collection.

And they often hold value as well, which is a double win.

So, if we had a second reason to buy an NFT in this deep bear market, it’s this: Celebrate the culture of Web3 with an NFT that has a message and wear it like a badge of honor. We are degens through the good times and the bad.

For the Community

“Community building.”

During the bull run of 2021-2022, the phrase became synonymous with NFT collections. It also highlighted the meta: PFP collections where people who liked the art, the team, or the values of the project would buy in, then change their profile pictures on social media to the images of their NFT.

The clearest example of a community that formed around a collection is none other than Bored Ape Yacht Club, the runaway winner of the PFP meta. In the week that followed the mint, the unique ownership percentage of BAYC NFTs was much lower than what it is today. But over time, as word spread about the strength of the community, more and more people bought in, pushing the floor price higher, making more people want in, and so forth.

Why are communities important to NFTs?

Simply put, being part of an NFT community can give you access to connections, new relationships, social status, and even token-gated in-person events. The strength of a community can make or break a project. This is a well-known fact that causes many teams to incentive this facet with Discord servers and paid mods, and discourage holders from selling below floor or other “leaving the community” actions.

It also encourages a sense of belonging among holders, typically around the shared values of the project. BAYC, for instance, is often seen as a young male community with visions of wealth, while the Azuki community prefers to be counterculture and has an air of coolness. On X, where NFT communities typically congregate, fellow members can be spotted quickly by looking at their profile pictures.

They are, then, “one of us.”

Even during the bear market, not a week goes by when someone doesn’t write a post saying they made some of their best friends in NFT communities, relationships that may last for the long term.

NFTs have facilitated this sense of belonging, a new method of social organization that is the pretext for the next iteration of the internet. Community, then, is our third reason to buy NFTs. Even if most users have left the space during this bear market, the ones remaining will be the players when the bull returns.

For the Utility

While many people collect NFTs to enjoy the art, celebrate the culture, or join a new community, some users want something more for their purchase. This is where the dreaded word “utility” comes into play. And we say dreaded not because utility is a bad thing. Money for nothing typically doesn’t exist in a free market. However, until lately, actual utility hasn’t existed much in the space.

But that may be starting to change.

Take, for instance, the case of DeGods, once Solana’s top collection before it moved to the Ethereum blockchain. Earlier this year, it rolled out Season III, which involved a significant art “downgrade” that surprised and delighted holders. But there was something else: the debut of Points Parlor, a gamified business model that paired holders with brands.

It works like this: Every DeGods holder accrues points for however long they keep their NFT. Eventually, those points accumulate to when the holder can redeem them for a prize from a company. It’s a reward for holding an NFT that isn’t just another shit token, and it’s a mechanism that doesn’t dilute the value of the original collection.

In addition, the company behind the collection makes money, which is important in this environment of almost zero marketplace royalties. It’s a win-win for everyone involved.

Points Parlor is an example of utility for holding NFTs — and an innovative one at that. If DeGods holders like the rewards they can earn, the community will remain happy, the floor price won’t fall, and the collection will still have momentum behind it. The rewards may eventually accrue back into the digital assets as well. If people really like the rewards, others may be more enticed to buy an NFT.

Even into 2022, most utility for NFTs revolved around diluting the original collection with a secondary collection, having the NFTs yield cryptocurrency that quickly trended to zero, or offering discounts on limited edition merch. Thankfully, the current market is forcing teams to innovate and bring new ideas to the table.

And we may see more true-blue utility based NFTs in the future.

For that reason, we say that utility is yet another reason to buy an NFT, even in this market.

For the Long-Term Value

Finally, there is a final bit of speculation. But this is not the quick flipping that took place during the latest bull, or even the swing trading that so many tried to do. This is the build-up of long-term value, and the example comes from NFT’s hottest collection: Pudgy Penguins.

Pudgy Penguins, under the helm of Luca Netz, has made the sharpest turnaround of perhaps any NFT project. At one point, it was left for dead with an empty treasury. Now, Pudgy Penguin toys are in Walmart, on Amazon, and taking the world by storm. The team also boasts perhaps the best social media game out there, appealing to a general audience.

So, how does this benefit holders of the NFTs in the collection?

According to Netz, it’s simple: As the brand gains steam and power, that momentum carries over into the NFTs themselves. As more people become fans of the Pudgies, more people will want the non-fungible tokens. That leads to a price rise, which always makes degens happy.

Although this is a simple theory (and so far has borne fruit for the collection), it is not necessarily easy. Netz and his team have used the Pudgy character to reach audiences all around the world, and its strategy has taken months, if not years to unfold. But now, it appears almost certain that Pudgy Penguins will be around the for the next bull run, and in a big way.

This gives hope to holders of NFTs in other collections.

If a team can execute its vision and build its brand, creating additional revenue streams in the process and becoming a successful company, then that value will flow into the non-fungible tokens.

They’ll become more attractive to more people, especially when combined with one of the other reasons to buy NFTs listed above. Our bags may become lighter as time goes on. At least that’s the hope.

Today’s game is not for flippers or short-term traders. Instead, speculators can focus on the teams that will bring long-term dollar value to their collections, typically through good business practices, innovative ideas, and good execution.

Play the long game and the investments might pay off. That is our fifth and final reason to buy NFTs today.


There you have it — your five reasons to buy NFTs, even during a crypto bear market. While price action may have slowed down to a crawl, there are still ways to enjoy the technology, whether it’s through the art, culture, community, utility, or even long-term value accrual.

Remember: Every token tells a story, and in this bear market, it’s ever more important to figure out your relationship to the space and why you really want to buy NFTs after all.

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