added by sari and · updated 2y ago
NFT Projects Are Just MLMs for Tech Elites - Napkin Math - Every
- When the elements of financially incentivized community, exclusivity, ownership, and growth are mixed, MLMs produce spectacular flameouts. LuLaRoe is the subject of over 50 lawsuits and has shrunk to a fraction of its former size.
from NFT Projects Are Just MLMs for Tech Elites - Napkin Math - Every by Kushaan Shah
sari added 3y ago
- But if there is any solace, there is a silver lining for NFTs: With MLMs, your entire “community” rests on a singular goal behind financial independence by selling a product - within the world of Web3, there’s a belief in a larger movement around decentralization and peer networks that connects people.
from NFT Projects Are Just MLMs for Tech Elites - Napkin Math - Every by Kushaan Shah
sari added 3y ago
- When we examine some of the more popular crypto projects, similar elements are eerily present.
from NFT Projects Are Just MLMs for Tech Elites - Napkin Math - Every by Kushaan Shah
sari added 3y ago
- This recruiting method is such an effective method of growth for the overall business that distributors will typically make more from creating new believers than they would by selling their own product.
from NFT Projects Are Just MLMs for Tech Elites - Napkin Math - Every by Kushaan Shah
sari added 3y ago
- We posit that the most prominent NFT projects, things like Bored Ape Yacht Club and Pudgy Penguins, hold such a remarkably similar structure to Multi-Level-Marketing companies (MLMs) that they will also suffer from the same failures. Investors should exercise extreme caution as they evaluate this emerging asset class.
from NFT Projects Are Just MLMs for Tech Elites - Napkin Math - Every by Kushaan Shah
sari added 3y ago
- MLMs incentivize recruiting behavior with what they call the “downline.” This is MLM gobbledygook meaning that when an existing distributor recruits a new distributor they receive some sort of financial compensation—typically a % of that person's earnings.
from NFT Projects Are Just MLMs for Tech Elites - Napkin Math - Every by Kushaan Shah
sari added 3y ago
- Today I would like to straddle that very difficult middle ground of appreciating the promises of the technology while simultaneously pointing out the (very obvious) flaws of some of its current iterations. T
from NFT Projects Are Just MLMs for Tech Elites - Napkin Math - Every by Kushaan Shah
sari added 3y ago