Challenges and Future Development of NFTs

The current NFT market faces many challenges, but it remains an important bridge for traditional internet users to enter the Web3 world.

Issues Facing the NFT Market

NFTs are mainly divided into two categories: production-type NFTs and collective-type NFTs.

Production-oriented NFTs are facing a dilemma of "grow or perish." The uncontrolled issuance has led to inflation, ultimately falling into a death spiral. This type of NFT ecosystem is too fragmented, with projects not interconnected, making it difficult for users to engage deeply.

Collective NFTs form closed small circles due to their scarcity, making it difficult to achieve value expansion. A community often only has a few thousand people, creating a false sense of prosperity. At the same time, excessive replication lowers brand tone and lacks preventive mechanisms and a healthy environment. Relying solely on marketing is not sustainable, and without actual application scenarios to support it, it can ultimately only be a fleeting moment.

The Value of NFT

Compared to cryptocurrencies, the non-financial characteristics of NFTs can lower the psychological barriers for users. Low liquidity actually makes users perceive this asset as safer.

NFT allows Web3 assets to be converted between Token and NFT, enhancing liquidity. Project parties can design activities around NFTs to increase community engagement and a sense of belonging.

NFT has unique social and emotional value, representing personal identity and interests in social networks, and is an important part of the digital lifestyle.

Summary of Experiences from the Past Three Years

1. The Move-To-Earn model has been validated by the market and has great potential in the health and fitness sector.

2. An effective anti-cheat system and activation code mechanism are crucial for sustainable growth.

3. Guiding Web3 users is more complex than Web2, requiring more education and guidance.

4. Web3 social is a necessity, reflecting users' demand for genuine social interaction.

Strategies for Achieving Sustainable Growth

1. Capture user attention:

• Focus on content design to attract users
• Timely delivery of important information
• Provide a zero-investment incentive mechanism
• Simplify user experience

2. Advantages of Familiar Social Networking:

• Trust-based deep interaction
• Expand influence using the six degrees theory
• Introduce a leasing system to promote cooperation among users
• Focus on real user experience

3. Sustainable Growth:

• Control the growth rate, slow and steady
• Extend product lifecycle
• Reshaping Economic Model Design
• Promote the demand for native Collective NFT

Strategies to Deal with "End-game"

1. Understand that "End-game" is a turning point rather than an ending.

2. Promote user consumption:

• Establish internal consensus
• Collaborate with major brands
• Conduct IP cooperation

3. Use social sharing:

• Design "Show off" mechanism
• Conduct social media marketing

Through these strategies, NFT projects can achieve sustainable development when the market faces challenges, creating more value for users.