GREAT ARTISTS STEAL

💀The Big Lie = NFTs they sold you 💀 Part (1/8) Here’s why Ordinals present the largest asymmetric risk/reward opportunity in Crypto and will save Digital Art. Here are the main reasons I’ve been bullish, remain bullish, and confident that Ordinals will flip art on NFTs on alt chains combined within 18 months - which represents over a +500x potential given the current Ordinals market cap. (My opinion) First I’ll go over NFTs, fatal problems with NFTs, and why Ordinals will win. NFTs, 99%+ of ERC and SPL tokens are simply off chain pointers to a centralized database. The data (Art) does not live on-chain, the art can be changed without your permission, the creators must pay fees to maintain this off-chain data on centralized servers. Do you really expect serious art collectors to pay $1m+ for a image that can be changed without consent (intentionally or via security breaches) at any time ? How can you build a brand on top of IP that risk looking completely different in the future ? Art is meant to be collected and passed down to future generations - who will be paying the server hosting fees in 100 years from now ? Many examples exist of NFTs that were once images that now solely exist as a 404 not found error…. As revenue sources dry up for projects, this will only become more common. Ordinals are fully on chain, one fee to inscribe and the data /image is as ~secure as the Bitcoin network, stored on every Bitcoin full node, not a centralized database. Incentives - how many 10k collections exist on ETH/SOL ? How many NFTs exist on ETH/SOL ? Millions and every NFT minted dilutes the existing NFTs. Relative to Ordinals, it’s insanely cheap to spin up a smart contract and mint millions of NFTs on new tokens. This ultimately drives profit actors to mint tons of low quality NFTs (+ dilution) and see if they can sell them, check your hidden folder and you will see what I’m talking about. On the contrary, Ordinals are competing for the same blockspace that every other Bitcoin transaction is paying for via a democratic fee market, as blockspace becomes more scarce and valuable (assumption), so will Ordinals. This creates an incentive to inscribe quality over quantity that will only increase. It could potentially cost millions of dollars to inscribe a 10k collection, hence why only a few exist even with 30m+ inscriptions. Which ecosystem do you think is more sustainable? Incentivized liquidity and leverage - we have seen many example of tokens like blur/looks abstracting the value away from the art to cater to alt coin traders and VCs - this created a downward spiral that still exist. People are willing to take small losses bc they think they will make it up with token rewards, as the token goes down, liquidity dries up, and rare NFTs lose a premium because the bulk of the liquidity is at the floor. This also dampens upside, diverts liquidity, and lessens volatility when you factor in AMMs. NFTs on alt chains have a large amount of leverage in the system that causes and will continue to cause liquidation cascades, this is due to smart contract functionality. Ordinals don’t have marketplaces that encourage this behavior as it’s tough without Turing complete smart contract functionality on the base layer. These will be built eventually, however due to the Bitcoins block time constraints you simply cannot trade the same way as alt chain NFTs. The other factor is rarity, since Ordinals currently have no metadata, they don’t have any statistical rarity, liquidity is spread organically based on what the collector values, not some bs ranking system. Continuing, you also don’t have staking or staking ponzinomics because you cannot just mint tokens on bitcoin like eth and sol. Ordinals mimic the IRL fine art market and collecting much closer than alt chains, on a more secure and larger blockchain. NFA - just my opinion (Part 1/8) - more to come💧

I am finally launching my company Here's an introduction to @Inscripedia and the new ecosystem it will introduce, A 🧵👇 1/16