While the NFT market has faced criticism recently, with many asserting that the majority of NFTs are losing value, some major brands continue to dabble in the NFT space. Despite a wave of detractors, NFT enthusiasts argue that there’s still potential for success in the realm of Web3 and digital scarcity.
According to a report by crypto analysis firm dappGambl, the price analysis of current NFTs using platforms like CoinMarketCap and NFT Scan has revealed that a large portion of NFT collections—69,795 out of 73,257—have a market cap of 0 Ether, indicating that many NFTs hold little to no value. The report also claims that 95% of NFT owners have incurred losses.
Despite this criticism, some major companies that embraced NFTs last year are yet to step back from the space, creating a trolley problem for these brands. They must decide whether to continue creating NFTs, hoping that the NFT market will recover from what some view as a speculative tech bubble or admit their NFT endeavors were a misstep.
For instance, GameStop, which once promoted its NFT marketplace, is now looking to exit the NFT space due to “regulatory uncertainty in the crypto space.” Skin and body care brand Nivea, as well as Anheuser-Busch, has remained relatively silent about NFTs since their previous NFT releases.
Despite the dwindling interest in NFTs, some companies are exploring using NFTs to put products behind a paywall. Shopify, for instance, has developed a service for merchants to create blockchain-based products that can “tokengate” users, offering exclusive content to those who purchase NFTs. A few brands are testing similar models to see if consumers are willing to spend money on digital assets for the chance to join an exclusive club.
While these major brands are still holding onto hope, the NFT market’s future remains uncertain, leaving them with a choice to either persist in their NFT ventures or shift their focus in a rapidly changing landscape.
