The Case for Profile Picture NFTs

So you have probably heard of music NFTs, metaverse NFTs, land NFTs and all the other NFTs with tons of utilities.

Does buying simple profile picture (PFP) NFTs make any more sense in today's market then?

Is it enough to simply like the art?

I recently came across a Twitter thread that puts forth a compelling reason why PFP NFTs are still valuable.

Here is a summary and my insights gathered from it:

PFP NFTs as Club Membership Access

Instead of just looking at these NFTs as simply art PFPs, we can see them as access to clubs.

In fact, NFT clubs/communities have distinct advantages over traditional clubs:

• They are online, with a much larger potential audience since it can span the globe

• Membership is fixed in number, based on the NFT supply

• NFTs and memberships are also easily tradable

• The NFTs offer emotional engagement and identification with the club, with the PFP art

• The NFT memberships can also be seen as investments that can increase in value over time.

Evolution of Club Membership

That being said, the building of club mechanics also takes time to evolve and mature.

• At the start, the project might only have a small number of ideal members with a large number of investors/flippers.

• The flippers will start leaving the project after they make money.

• But as the project delivers on their promises to the ideal members, it will also attract new members who come onboard with the same vision.

• These ideal members are much more sticky to the community, less likely to leave and makes total available NFT supply smaller, increasing overall investment price.

How to think about PFP NFTs

We can observe that there is value in PFP NFTs, in terms of its access to an exclusive club.

If we now consider PFP NFTs as a membership access, here are some ways we can evaluate PFP NFT projects:

• Is there a sizeable group of ideal members (or are there any in the first place?)

• Are the ideal members a community you want to be a part of?

• What have the team built? Are they building something that will make the ideal members want to stay for the long run?

Of course, there are many other factors to consider.

But given the importance of communities and memberships in NFTs, I believe that these are good questions to ask yourself about such projects before you invest.

Did you learn something from today's post?

Feel free to drop me a DM and send your feedback, suggestions or takeaways over!

Be sure to also follow Notes from the Lab on Twitter and Telegram too!