The public’s sentiment towards NFTs has hit rock bottom as they are widely considered to be scams, ponzi schemes, and overpriced pictures of monkeys. The collapse of FTX made it all worse. Most people outside the industry believe that NFTs have gone downhill, with many scams and rug pulls being exposed and only delusional individuals remaining.

This perception is not far off from the truth, as a good majority of projects were not built to last and never had the right intentions in the first place. That being said, there are legitimate projects and builders who are working towards a better Web3, which will eventually be adopted.

There are several reasons why people misunderstand NFTs:

1. The complexity of the securitised ownership

Whether it’s digital art, gaming tokens, or avatars, each use case has endless possibilities, and it takes time to see the actual implications of NFTs.

2. The usability of blockchain technology

Additionally, the blockchain technology behind NFTs is not easy to understand, with wallets, transactions, gas fees, decentralisation, permissionless, and provenance being just a few of the complicated terms that need to be grasped.

3. Complicated UIUX

The complicated user interface and user experience of NFTs can also be a hurdle for newcomers, with gas fees, gas wars, and on and off ramps being a particular challenge.

4. Security Risks

Furthermore, security is a major concern, with hacks and scams being all too common in the NFT space.

5. Short-lived Trends

The rapidly changing trends in the market is extremely hard to keep up with. Just in 2023 alone, we have seen the Japanese meta, the Open Edition meta, and the Blur airdrop hitting the market. And we are barely more than a month into the new year.

6. Volatility and Uncertainties

Besides the market volatility, every project carries uncertainties and it takes a huge leap of faith in the concept of NFT, and in a team’s execution, for investors to put their money behind a project.

7. The Right Mentality

Not every investor or speculator is ready to take on this unpredictable market. Not only do they have to deal with all the complexity, there is also the emotion side of things like fear of missing out (FOMO) and fear, uncertainty, and doubt (FUD) that they have to deal with on a daily basis.

In summary, the NFT space is:

Given these complexities, those who still believe in the future of NFTs should be commended for their perseverance. What others may not understand now, may make sense in the future, and only time will tell.

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