The Saint Eclectic
The Saint Eclectic 6 minutes reading from Solana

Why NFT Mentioned $SOL NFT, Immediately Sell Effect?

1/ There has been some recent controversy over Solana influencers hyping NFT mints & immediately selling them.

This is a symptom of the problem, not the root cause. It's time to reflect on the current SOL NFT meta 🧵👇nfts NFTCommunity crypto

2/ A few days ago, some Solana twitter influencers and alpha groups like @enigmaventures received large allocations of @Rakkudos NFTs ahead of the mint, some up to 100 each. This is nothing new and has happened with other mints, influencers & alpha groups since NFTs were a thing

3/ On this particular launch, some of the influential accounts with pre-allocated NFTs started listing and selling them. There was no lock, only an unspoken understanding not to dump something they had early access to.

CT did not respond kindly.

hamster.sol  on Twitterhamster.sol  on Twitter

4/ There've been many posts by others quick to pass judgement on the situation. I won't go there.

Instead I feel there is a more important conversation we should have, i.e. why does this happen why do we keep finding ourselves in this situation? The meta currently feels broken.

5/ Firstly, this happens because NFT projects get value out of influencers: their reach & following get 👀s on the project, building hype & momentum & ⬆️ the chance of selling out

In return they get allocation which they can sell, sometimes @ a loss but usually for a profit.

6/ Influencers are effectively PAID MARKETERS doing a JOB for a (side) living.

Of course not all are, but NFT enjoyoooors should just view them that way BY DEFAULT to minimize harm & level set expectations.

If you get dumped on enough, recognize the signs & move on.

7/ The second reason we are here is because NFTs feel like a lottery ticket to instant wealth & influencer recommendations on CT are a shortcut for DD to get-rich-quick opportunities.

They are not. Understand influencer incentives, research the project else you'll prob get rekt

8/ Next time you feel mint FOMO - ask yourself. Are you excited because you're investing in a brand / team / product? Or are you gambling for the next flip?

If it's gambling then recognize it. If it's not, then realize there's still a high chance these collections don't make it

9/ The third & final reason this happens is because of the structure of the current NFT meta.

The ecosystem seems fixated on recycling collections of 5k to 10k jpeg drops, stuck in an endless cycle of gambling on the next mint hit, then onto the next one.

10/ The future of NFTs is so much more than this - NFTs giving you

ownership in your favorite artist's latest movie - or a set of beats that you can on-sell to musicians - access to consumer goods & lifestyle experiences - voting rights on a TV talent show - how a story unfolds

11/ If NFTs are going to succeed they are going to be much more than just small jpeg drops which will be relegated to a select few Veblen good-type collections

They'll be used far & wide and in much greater numbers. We can do more than the current gambling/influencer/hype meta.

This post is based on this twitter thread.

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