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The 8 Lies of Web3! Does buying NFTs make you an investor? Does low supply equate to high prices?

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The 8 Lies of Web3! Does buying NFTs make you an investor? Does low supply equate to high prices?

"You've been fed too much crap in the world of Web3," said NFT God.

This article compiles the eight lies of Web3 by NFT KOL and content creator NFT God. How many have you fallen for?

Table of Contents

Eight Lies of Web3

1. Lower Supply = Higher Price

Many current projects involve a burning mechanism, but burning does not necessarily affect prices because lower supply only equals lower liquidity.

To increase the price of a project, demand must rise, and lowering the supply rarely achieves this effect.

2. Buying an NFT Makes You an Investor in the Project

If you buy a company's stock, you are an investor in that company; if you buy an NFT of a project, you are just a customer.

Other than the NFT you purchase, the project owes you nothing, claiming to be an investor will only lead to more disappointment.

3. Locking NFTs is Called "Staking"

Staking refers to actions that protect blockchain network security or perform validation, and "staking" an NFT is simply locking the NFT via smart contracts to artificially reduce circulation.

This is just a trick to make it slightly harder for holders to sell NFTs, not a feature.

4. Weak Hands Are Bad, Diamond Hands Are Good

Unless you sell your NFT, you won't make money. Paper hands are created by people who want to use you as liquidity for exiting.

Those who criticize you for selling are just frustrated because you beat them to the punch.

5. There Is a Free Lunch

Tokens obtained through staking and high APY DeFi returns are immediate red flags.

Money always comes from somewhere; no one can print money out of thin air except governments.

If you don't know where the returns come from, then you are the source of the returns.

6. When the Bull Market Returns, Prices Will Go to the Moon

Prices will indeed rise eventually, but perhaps only 1% comes from the current project, the rest from new projects that follow.

People in the NFT community also suffer from "shiny new toy syndrome," they won't buy into dead projects.

7. Engagement Farming Will Bring Quality Audiences

Note: Engagement farming refers to excessive participation on social platforms without providing substantial content.

Want to build a real brand? Create a business model? Sell a product?

Engagement farming only attracts audiences who don't care about you, and you'll also damage their trust. It's just a vanity metric with no value.

8. WAGMI - We Are Gonna Make It

The financial market is a game between people, as is the cryptocurrency and NFT market.

Not everyone will end up laughing, when a project's price soars and someone sells for profit, the buyer on the other end may face losses.

WAGMI is just a cliché that allows you to invest irresponsibly; rationality must surpass emotion.

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