The Final Chapter and Reboot of NFT: From Speculation to Real Value Creation

1. The Collapse of NFTs

The hype of the NFT market seems to be coming to an end. The token issuance of Pudgy Penguins has become the last highlight of NFTs, while the recent token issuance of Doodles on Solana has only garnered a small amount of attention. The once-popular Bitcoin NFTs are also nearly worthless, and those once-crazy narratives have lost their appeal.

10,000 PFP (Profile Picture) NFTs were once seen as an ideal community size to help a bottom-up IP project achieve success. This model is completely different from traditional IP projects, which usually require substantial funding and years of development to create a deeply resonant IP.

The uniqueness of NFTs lies in their extremely low barriers to entry and the rapid assetization process. Creators only need to pay a small gas fee to sell their works on NFT trading platforms, without the support of galleries, toy companies, or professional teams. This gives ordinary people the opportunity to participate in IP investment and incubation, which is a rare experience for many.

However, as certain well-known NFT projects continue to launch sub-series and derivatives, the positioning of NFTs has gradually become ambiguous. They no longer seem to be an investment or equity, but rather an expensive luxury item with membership benefits. Project teams hope that holders will continuously purchase new series to support their long-term development plans, but this practice is also gradually draining the enthusiasm of original series holders.

The project is facing a dilemma: creating content requires a significant investment, but not doing so may lead to the IP losing its vitality. Frequently releasing sub-series can harm the interests of original series holders, and waiting for content to bring returns may take years, or even may never happen. As the floor price drops, the beautiful illusions begin to shatter, and internal conflicts within the community continue to escalate.

2. The Ace MCN in the IP World - PoP MART

If NFTs are regarded as luxury trendy toys for Generation Z, the reasons for their rise and fall become clearer. In a fast-paced era, even without solid content support, unique appearances can quickly attract buyers. Some well-known trendy toy brands in the real world have also relied on their unique designs to become popular.

However, IP without content as a value support can easily become outdated. Restricted by the cultural characteristics of the cryptocurrency circle and the low success rate of NFT projects, project parties often keep launching derivatives around a single IP. But the problem is that before the core value has been established, the market enthusiasm has already faded.

The success of PoP MART may provide a new perspective for NFTs. This company, originating from Beijing, achieved initial success by代理ing Sonny Angel and then began to create its own IP. Their first自主潮玩 series, Molly, quickly became popular, stimulating consumers' purchasing desires through the blind box model.

The success of PoP MART lies in its continuous launch of new IPs and collaborative partnerships. Currently, the company has 12 proprietary IPs, 25 exclusive IPs, and over 50 non-exclusive collaborative IPs. This diversified IP strategy enables the company to respond to the changing preferences of different consumers and reduce the risk of failure of a single IP.

The model of PoP MART provides insights for NFT projects: perhaps we should rethink what an IP business is and what the development roadmap for NFTs looks like. Without strong content support, how can we achieve sustained success through a diversified IP portfolio?

III. The Pragmatic Approach of Pudgy Penguins

The success of Pudgy Penguins lies in its pragmatic attitude. The challenge of NFT projects is not in the technology, but in the realization of the IP. Many projects want to achieve instant success, but Pudgy Penguins has chosen a down-to-earth development path.

After experiencing early setbacks, Pudgy Penguins found a new owner, Luca Netz, who truly understands brand operations. He has put the project back on track, focusing on running a real company for NFT holders. From marketing to plush toys to future gaming plans, every step is solid and steady. This approach not only allows the company to be profitable but also benefits the holders.

The case of Pudgy Penguins proves that a bottom-up IP model is viable in Web3, and the key lies in whether the project team is willing to lower their stance and operate pragmatically.

4. Future Path

The success path of NFT projects seems simple, but in reality, it is difficult. Future development requires breaking out of the inherent mindset of the cryptocurrency circle. To become the next Web3 version of Disney, a significant amount of time and patience is needed to accumulate.

NFT projects may need to find a balance between scarcity and mass appeal. If NFTs are positioned as trendy consumer goods, then a limited edition of 10,000 may be too restrictive. If they are viewed as assets unique to Web3 and a means of fundraising, ultimately there still needs to be a commitment to the community through tangible products, rather than endlessly launching sub-series.

Future NFT projects may need to consider how to expand a single IP into an IP factory and how to innovate based on existing PFPs. This may require the introduction of new concepts, technologies, and gameplay.

5. The Significance of Token Issuance

The significance of issuing tokens for NFT projects is still a matter of debate. This practice may be seen as a dilution of value for the original NFT holders, or it may be interpreted as a way for the project to seek a quick exit.

From APE to DOOD, the functions of many NFT tokens are often limited to earning dividends through staking, purchasing virtual items, or participating in governance. Ideally, this should create a positive cycle among holders, stakers, and developers. However, in reality, it often falls into a vicious cycle of declining NFT prices, reduced mining rewards, and token devaluation.

For original NFT holders, although the token issuance may dilute some rights, they usually receive a large airdrop during the token generation event (TGE), so few people complain. However, in the long run, this practice does lead to value dilution.

Short-term popularity is certainly important, but the long-term survival of the project is even more crucial. Project teams should consider this carefully and not let the token issuance become the endpoint of the project.

Conclusion

In this fast-paced era that seeks instant gratification, we have witnessed the rise of many emerging Web2 IPs. NFTs should thrive in such an environment due to their many unique characteristics. However, the reality is less than satisfactory. Nonetheless, we still believe that beneath the ruins of the current NFT market lies the next IP with unlimited potential. The key is to find project teams willing to operate patiently and develop steadily.