Why NFT has value?
Traditional stock market assets are evaluated based on the assets on the balance sheet, the company's earnings, and the company's projected growth. You decide on the company's market capitalization, then divide it by the number of outstanding shares to get the stock price. Because "beauty is in the eye of the beholder," NFTs are a little different. In most cases, there are no earnings or growth in an NFT collection. It's bought only for "social value," to brag about and demonstrate to your circle of friends.
People with greater "social rankings" than you have, thus in order to improve your own "social ranking," you must have one as well. As a result, if supply is less than demand, you are prepared to pay more than the person next to you."Social Climbing" is a concept that has been ingrained in human nature since the dawn of civilization.
After then, prices are decided by basic economic supply and demand. When there is a shortage of supply and a high demand, prices rise automatically.
As a result, there is an issue in that any NFT that loses favor with high-status individuals will cause the price of the NFT to plummet. Why would you want them if your more "socially rated" friend doesn't?
As a result, it's critical to get NFTs that are more than simply nice JPEGs. The NFT must be practical. As a membership in a club that sells other items, or as an anchor for a bigger brand, or as a ticket to an event. Each of these secondary thoughts adds value to the overall picture. They generate monetary flow and correct valuation indicators to sustain the NFT's base price.
For case, the CryptoCrewz collection NFT set may be a ticket to a enrollment of an elite brand, where named stock can be obtained, the NFT can be utilized as get to to restricted version music discharges, and get to to VR concerts. Each of these “events” and esteem manifestations can be measured in genuine world dollars. The creation of the brand is the basic development behind the NFT, not the other way around.