NFTs: A Superior Tool for Community Building

Despite the rise of meme coins, non-fungible tokens (NFTs) remain the superior method for community building. This view was expressed by Pudgy Penguins CEO Luca Netz at the Solana Breakpoint conference, as reported by The Block.

“Meme coins do not provide a profile picture through which you can easily identify someone online who shares [your] values. And this is practically a chain reaction effect that I believe only NFTs can create,” he explained.

Netz noted that NFTs also establish hierarchy and demonstrate status within a community through the price and timing of token acquisition. In his view, NFT holders aspire to be leaders of the pack.

The non-fungible token market is experiencing challenging times. According to CryptoSlam, trading volume over the past 30 days stands at $345 million, compared to $6 billion in December 2021. Amid the decline of NFTs, meme tokens have become a leading force in Web3. 

Netz attributed the sector’s downturn to the low liquidity of successful NFTs for whales and weak interest from retail buyers. Nonetheless, the CEO of Pudgy Penguins reminded that the cryptocurrency market is cyclical and assured that NFTs will emerge stronger in the next wave of popularity.

In September, NFT Evening experts concluded that 96% of non-fungible tokens are defunct.

Previously, the rare CryptoPunk #6915 was sold for 620 ETH ($1.48 million) with a “paper” loss of 78%.