From PFPs to VIDs

By changing your avatar to an NFT that you own, you are conveying your enthusiasm for that project, and in turn, the creativity, community, technology, and values that underpin it. A simple PFP change means a lot in the crypto space. 

Previous analysis articles attributed the value of NFT PFP to a sense of show off or social identity. The latter is inaccurate. Social identity and cultural circle identity are just the result of PFP-type NFTs having value, not the reason for it. The real reason is that NFTs have unearthed the undiscovered residual value of Web2 social relationship... See more

More broadly, NFTs could serve as one anchor for decentralized identity. Already, several users identify their online presence not merely with a username but also with an NFT project. As an example, co-founder of Manifold @richerd explained that he turned down a $9.5 million offer for his cryptopunk NFT because he identifies his cryptopunk as his i... See more

2021 was the year of profile picture (PFP) NFTs. Depending on how you value them, both CryptoPunks and Bored Ape Yacht Club have total market caps (# of NFTs * price per NFT) of around $3 billion each. More than just a disconnected network of owners, though, the humans behind the NFT PFP formed communities, online and IRL. First, they met in Discor... See more

NFT collections, and especially the latest wave of ‘avatar communities’ aka PFP collections, have the potential to mirror this healthy dynamic. When we own a SupDuck or Cryptoad, we have a motivation to engage in behavior that makes everyone’s ownership more significant. As ‘residents’ of that virtual neighborhood, we all have an interest in broade... See more

Each avatar club is a strange combination of gated online community, stock-shareholding group, and art-appreciation society. When one ape (or cat or pill or alien) is bought for a high price, the perceived value of all ten thousand authentic N.F.T.s in the set rises, the same way a painting fetching a record price at auction might increase the valu... See more

Other companies are exploring how NFTs could be used in establishing and recording people’s identity and reputation online. MIT recently started offering blockchain-based digital diplomas, which are effectively non-transferable NFTs. Meanwhile, both established players like Facebook (now Meta) and new ventures like POAP and koodos are providing way... See more

PFPPFP is an abbreviation for ‘picture for proof’ or commonly known as a profile picture. NFT PFPs as of now are only commonly used within Twitter. Other social media platforms are planning to adopt NFT PFPs into their application.