The NFT market faces challenges, but it remains an important bridge connecting Web2 and Web3.

The current NFT market is in a challenging period, but NFTs remain an important way for traditional internet users to enter the Web3 world.

Reasons for the Slump in the NFT Market

NFTs can be broadly divided into two categories: production-type and collective-type.

Production-type NFTs are facing the dilemma of "either growth or extinction." Due to the demand for growth, there has been rampant issuance, leading to market inflation and unstable value, ultimately falling into a death spiral. The ecology of these NFTs is overly fragmented, with projects disconnected from each other, making it difficult for users to engage deeply.

Collective NFTs create a closed-circle culture due to their scarcity, making it difficult to expand their value outward. A community often only has a few thousand people, creating a false sense of liveliness. Meanwhile, the spontaneous actions of outsiders may lower the brand's tone. The rampant copying reflects a lack of a healthy ecosystem. At the same time, relying on marketing hype without actual application scenarios to support it is unsustainable.

The Unique Value of NFT

Compared to cryptocurrencies, the non-financial characteristics of NFTs can lower the psychological barrier for users. Their low liquidity makes users view them as a safer asset class.

NFT can be converted between Token and NFT, enhancing asset liquidity. Project teams can design activities around NFTs to increase community engagement and sense of belonging. This somewhat alleviates the inferiority of Web3 in the face of Web2.

Most importantly, NFTs have unique social and emotional value, representing personal identity and interests in social networks, showcasing individuality. This is an important part of digital life.

Experience accumulated over the past three years

1. The Move-To-Earn model has been validated by the market. Annual returns, prices, and the stability of local communities, along with the non-financialization of communities, all demonstrate the feasibility of this model. Developers should focus on the potential of this model in the health and fitness sectors.

2. Anti-cheating systems and activation code mechanisms are crucial. A lack of an effective anti-cheating system can severely impact user growth. Activation codes should be released at a pace of 1.5% daily to attract users who truly value their usage rights. Sustainable growth is more valuable in Web3.

3. Guiding Web2 users into Web3 faces challenges. User acceptance of new technologies varies, requiring more education and guidance. The key is to allow Web2 users to use Web3 products seamlessly, changing the anti-human design.

4. Web3 social has a real demand. Users spontaneously organize Web3 social activities, reflecting a need for genuine interaction. Projects should focus on building a trustworthy social environment to enhance user engagement. Finding ways to achieve non-financial pairing between Web3 and Web2 users through social interactions is a pressing issue.

Strategies for Achieving Sustainable Growth

Capture user attention:

• Attention is the most valuable resource, and it is necessary to design content that attracts users.
• Timely delivery of key information to improve success rate
• Zero investment incentive mechanism to attract more users to participate.
• Simplified mechanisms enhance understanding

The potential of acquaintance socializing:

• Trust-based deep interaction
• The six degrees theory expands its influence.
• The leasing system promotes cooperation among users
• Focus on creating real social scenarios and experiences

Sustainable Growth:

• Allow sufficient time to build consensus
• Extend product lifecycle, reshape economic model
• Control the growth rhythm through activation codes
• Improve mechanisms to eliminate inflation factors
• Promote the demand for native Collective NFT

Strategies for Dealing with Stagnant Growth

1. Understand that this is a turning point, and re-examine positioning and strategy.

2. Promote user consumption:

   • Establish internal consensus and form a unified marketing strategy
   • Collaborate with well-known brands to enhance image and attract attention
   • IP collaboration provides a unique experience

3. Utilize social sharing:

   • Design a "show off" mechanism to encourage users to share their experiences.
   • Utilize social media for precision marketing
   • Publish user-generated content to enhance credibility
   • Understand needs through interaction and adjust strategies in a timely manner.