Visionrare seemed to underestimate the power of that idea. There’s a market for NFTs because crypto’s nouveau riche don’t know what to do with their money, and parking it in NFTs lets them keep their chips in the casino, but also because there’s also an understanding that buying the token doesn’t get you anything but the token. It works, for now, because NFTs operate like digital certificates of ownership. But it’s also fundamentally incompatible with equity in a traditional company. NFTs and token equity models work for DAOs, or decentralized autonomous organizations, because they’re essentially on-chain, unregulated versions of traditional companies; without that anchor in the “real” world, there’s more leeway for digital assets to represent actual ownership.
Please Don’t Do This — CoinDesk
