The Revival of NFT: From Challenges to Opportunities

In the current challenging NFT market environment, NFTs remain an important bridge connecting traditional internet users with the Web3 world. However, the NFT industry is facing several urgent issues that need to be addressed.

Challenges Facing the NFT Industry

Production-type NFT (, like GameFi ), is caught in a "growth or die" dilemma. Over-issuance leads to inflation, unstable value, and may ultimately fall into a death spiral. Additionally, the ecosystem is overly fragmented, making it difficult for users to engage deeply.

Collective NFTs (, such as PFP ), create a closed circle culture due to their scarcity, making it difficult to realize value spillover. At the same time, the lack of preventive mechanisms and a healthy environment leads to excessive replication. The absence of practical application scenarios makes it hard to convert short-term marketing into long-term narratives, resulting in a hollow user experience.

Unique Advantages of NFT

Despite facing challenges, NFTs still have some unique advantages:

1. Non-financial characteristics lower the psychological barriers for users.
2. Enhancing asset liquidity through conversion between Token and NFT
3. Activities designed around NFTs can enhance community engagement.
4. It has unique social and emotional value, showcasing personal characteristics.

Industry Experience and Insights

A well-known project has accumulated valuable experience over three years of operation:

1. Move-To-Earn model has been validated by the market
2. The anti-cheating system and activation code mechanism are crucial.
3. Guiding Web3 users is more challenging than Web2.
4. The demand for Web3 social interactions is real.

Strategies for Achieving Sustainable Growth

To achieve sustainable growth, the project may consider the following strategies:

1. Capture user attention: Focus on content design and timely information delivery.
2. Zero Investment Incentive Mechanism: Lowering User Participation Threshold
3. Simplification Mechanism: Enhance User Understanding and Participation
4. Leasing System: Facilitating Interaction between Web2 and Web3 Users
5. Familiar Social Networking: Leverage Trust Relationships to Drive Growth
6. Control growth rate: achieve slow and stable growth through mechanisms such as activation codes.
7. Improve the economic model: eliminate inflation factors

Strategies to Address Stagnant Growth

1. Reassess market positioning and user needs
2. Establish internal consensus and unify marketing strategies
3. Collaborate with well-known brands to enhance influence
4. Purchase or collaborate with well-known IP
5. Encourage users to share socially, such as the "Show off" mechanism.
6. Precise Marketing Using Social Media

Through these strategies, NFT projects can seek new growth opportunities in a challenging market and reshape the industry landscape. The key lies in understanding user needs, continuous innovation, and building a sustainable ecosystem.