Challenges and Opportunities in the NFT Market: Reshaping Rise and Value

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

Analysis of the Current State of the NFT Market

NFTs are mainly divided into two categories: production-type NFTs and collective-type NFTs. Production-type NFTs face the dilemma of "rise or extinction"; unrestricted issuance leads to inflation, ultimately falling into a death spiral. The ecosystem is too fragmented, making it difficult for users to engage deeply.

Collective NFTs form closed circles due to their scarcity, making it difficult to achieve value spillover. The lack of practical application scenarios makes it challenging to transform short-term marketing stories into sustainable narratives.

The Unique Value of NFT

Compared to cryptocurrencies, NFTs have the following advantages:

1. Non-financial characteristics reduce the psychological barriers for users.
2. Can convert between Token and NFT, enhancing asset liquidity.
3. Design activities around NFT to enhance community engagement
4. Has unique social and emotional value, showcasing personal characteristics.

Web3 Project Operation Experience

1. The Move-To-Earn model has been validated by the market and has growth potential.

2. An effective anti-cheating system and activation code mechanism are crucial for sustainable rise.

3. Guiding Web3 users is more challenging than Web2 and requires more educational guidance.

4. Web3 social is a necessity, reflecting users' demand for real social interactions.

Strategies for Achieving Sustainable Rise

1. Capture user attention

   • Value the scarcity of attention
   • Timely convey key information
   • Design zero-investment incentive mechanism
   • Simplify user experience

2. Develop acquaintance social networking

   • Utilize the depth and trust advantages of familiar social connections
   • Apply the six degrees theory to expand influence
   • Introduce a leasing system to promote interaction
   • Focus on providing a genuine and valuable user experience

3. Control the rise speed

   • Give sufficient time for consensus formation
   • Extend product lifecycle
   • Redesigning economic model
   • Use activation codes to control the rise pace

Strategies for the End-game Phase

1. Understand the essence of the End-game and regard it as a turning point.

2. Promote user consumption

   • Establish internal consensus
   • Collaborate with major brands
   • Purchase or collaborate with well-known IP

3. leveraging social sharing

   • Design a "show-off" mechanism
   • Strengthen social media marketing

Through the above strategies, NFT projects can reshape rise when facing challenges and create sustained value. The key lies in understanding user needs, providing genuine and valuable experiences, and effectively leveraging the power of social networks.