The stories create demand and the NFTs provide the scarcity. Scarcity helps enable status.

In December, a fashion startup called Scarce started selling used luxury clothing in the form of mystery boxes, following in the footsteps of a British startup, Heat, which launched with the same concept in late 2019. Both companies claim they have managed to avoid a high return rate — one of the biggest potential pitfalls of a mystery box sales mo... See more

Consider the difference between Trader Joe’s (a beloved grocery store with a wide variety of goods, all of which you can trust) and whatever new CPG goods are popular on TikTok. Hype is a flash in the pan. Narrative network effects are durable, long-lasting, and broadly applicable.