It is pointed out that NFT is nothing more than a 'multi-commercial method' by an elite who is familiar with technology.



One of the NFT art

bid at 75 billion yen, or is, tweets Twitter founder is a successful bid at 300 million yen with or is, non-substitutability token (NFT) is a collection of recent years considerable attention. Evan Armstrong, a lead writer who is mainly in charge of finance in the business newsletter Every, discussed such NFTs.

NFT Projects are just MLMs for Tech Elites --Napkin Math --Every
https://every.to/napkin-math/nft-projects-are-just-mlms-for-tech-elites

According to Armstrong, pros blame the denials for 'amateur, hateist, skeptic, loser, closed' when a new technology bubble occurs, while denials conversely ' Bernie Madoff (fraud). (Master) ・Tulip Bubble 2.0 ・ Mouse lecture ・ Scam teacher ” Armstrong said that the evaluation of NFTs is divided into pros and cons from 'the second coming of Christ in the technical world' to 'the biggest fraud since the invention of crypto assets'.


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Marco Verch Professional Photographer

Armstrong, who researched NFTs in collaboration with Kushan Shah, the author of the marketing newsletter Mind Meld , gave the NFT a rating of 'The prominent NFT project is a multi-level marketing transaction ( multi-level marketing). It has a structure very similar to that of the commercial law ), and it is highly likely that it will follow a similar end. '

Unlike ordinary distribution, where there are sellers and buyers, the MLM method is a chain of transactions in which a buyer solicits a new buyer and earns a commission. In the United States, an apparel maker called LuLaRoe has failed to develop a MLM, facing criticism from consumer protection groups and more than 50 proceedings. It became a social issue, such as being featured in the theme of the Amazon Prime Video documentary program ' LuLaRich'.

The problem with MLM is that the real benefits are limited to those at the top of the member hierarchy. For example, in the case of LuLaRoe, the top 1% of members earned 50% of the total profit, and 80% or more of the members could not achieve the quota and lost. If you want to expand the sales network so as not to lose money, each member needs to acquire 4 new members every month, but then '1 x 4 = 4' in 1 month and '1 x 4 = 4' in 2 months. '4 x 4 = 16', swelling to '16 x 4 = 64' in 3 months, and only 15 months later, '268,435,456 x 4 = 1,073,471,824', and the members are north and south. It will exceed the total population of the United States. In other words, when a member wanted to get a commission higher than the purchase price of the product he was buying, the market was saturated in a blink of an eye.


by Tara_St

This is a simplified and extreme calculation, but with the fact that to become a member of LuLaRoe, you have to buy a product worth $ 5,000 and sell it to another person, and in the end the members will sell the product from each other. There was even a situation where people bought each other. The members of LuLaRoe have been fascinated by the LuLaRoe brand so far because of the 'community of members' and the 'popular tricks that take advantage of their rarity.'

If LuLaRoe announces that 'this legging is limited to 2000 pieces', the rarity of the leggings in the design will increase and the price in the community will rise. Armstrong believes that NFTs also have the 'characteristics of fans immersing themselves in the community' and the 'mechanism of rarity boosting value,' as seen in LuLaRoe's MLM.

One of the most popular NFT arts is 'Profile-Picture NFT (PFP NFT)', which sells and sells a collection of profile images at auction. A typical example is 'Bored Ape Yacht Club (BAYC /)', which is a collection of monkey icons. Bored monkey yacht club) 'and so on.

You can find out more about BAYC by reading the following articles.

What's behind the proliferation of 'monkey icons' on Twitter? --GIGAZINE



People who bought BAYC can get a sense of belonging between people who are fascinated by the same culture and theme by changing the profile image of SNS such as Twitter to a monkey icon. In addition, some images of BAYC monkeys were rare, and in particular, images of monkeys with rare golden fur could even cost more than 600 ETH (about 220 million yen).



In this regard, Armstrong said, 'For the sake of fairness, this comparison is not perfect. In MLM, the loser is the one who buys more than he can get, but in NFT it is more than the bid price. You can only lose when the selling price is cheaper, but in either case, an inexperienced person will lose. '

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