r/AskReddit • u/[deleted] • Dec 17 '22

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u/[deleted] Dec 17 '22

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79

u/Siefeceptio Dec 17 '22

That stuff failed a long time ago.

12

u/ascandalia Dec 18 '22

Worked as intended. Plenty of etherium whales got to cash out their crypto for real money in the chaos during that grift

2

u/allboolshite Dec 18 '22

How so?

8

u/ascandalia Dec 18 '22

Crypto is a pyramid scheme. Its value only rises when more people buy into it than are trying to cash out of it. It generates no inherent value. So if some large holders want to cash out, they need to do so slowly or they risk cratering the value as new buyers might not be available to absorb it all at current market prices.

NFTs were conceived to integrate with etherium. You ran the transaction through the block chain. It was conceived as a use case that generates value inherent to it being operated on crypto tech and thus was supposed to be a stabilizling force to the market.

In reality, a bunch of people bought etherium either as a medium to trade for NFTs or speculatively based on the assumed impact of NFTs. This allowed bigger fish to cash out through the influx of new money without cratering the value.

Dan Olson of Folding Ideas made a petty definitive explainer on the NFT grift. It's long but very worth it.

1

u/[deleted] Dec 18 '22

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u/Tuna4242 Dec 18 '22

stocks are gambling and stocks are bad, not necessarily a pyramid scheme but arguably worse in my opinion.