NFT Projects are just MLMs for Tech Elites

Whenever a new technology bubble emerges, the end result is always name-calling. A bifurcation of belief usually occurs as people are dazzled by the latest shiny object. For the zealots, incentivized to see the bubble grow ever larger, they will call the uninitiated “normies, haters, skeptics, losers, closed-minded” etc. For those who are too late to the trend to achieve the truly ridiculous returns of early adopters, the next most financially lucrative option is to do as Michael Jordan did, and join the dunk industry. “Bernie Madoff! Tulip bulb 2.0! Pyramid scheme! Charlatans!”

The current tech hullabaloo is NFTs. Non-fungible-tokens are, depending on if you are talking to a zealot or a skeptic, either the second coming of TechnoChrist or the biggest scam to be invented in Crypto since the scam of Crypto was invented. (The venn diagram of NFT haters are almost exact matches of Crypto haters). 

Today I would like to straddle that very difficult middle ground of appreciating the promises of the technology while simultaneously pointing out the (very obvious) flaws of some of its current iterations. To do so, I’ve teamed up with the wonderful Kushaan Shah who writes a marketing-focused newsletter called Mind Meld which I’ve found valuable over the last year. We co-wrote the piece that follows.

We posit that the most prominent NFT projects, things like Bored Ape Yacht Club and Pudgy Penguins, hold such a remarkably similar structure to Multi-Level-Marketing companies (MLMs) that they will also suffer from the same failures. Investors should exercise extreme caution as they evaluate this emerging asset class. 

To begin though, we must start with hot dog leggings.

LuLaRipped Off 

When you peruse the aisles of most thrift stores in Middle America, the women’s section is all stuffed with similar products. Garishly bright neon colors are partnered with chevron patterns, a clashing cacophony neatly printed onto buttery soft pants.