NFT and Crypto Investing: What’s the Difference? We Asked Around — DailyCoin


Thus, both investment practices have risks, each creating new behavioral patterns, although the end goal is the same. When asked, gmoney.eth mentioned he had invested in both NFTs and DeFi, whilst there was no mention of ICOs.

Another crypto investor, Friendly Ape, who is one of the creators of Bored Ape Tron Club, a TRON NFT, told Dailycoin that “NFTs do not follow traditional cryptocurrency value structures” because an object’s rarity is what defines it as valuable. 

In contrast, crypto investing, including DeFi, relies on the network effect to grow in value as more people give value and use the network. Although here, tokenomics play a role in how token use cases and scarcity are generated. Friendly Ape notes:

"As a collectible, the value of an NFT is not limited by projections or roadmaps but rather by how well the piece connects with a person, group, and community."

Unlike digital tokens, NFTs “are a unique asset that you own” and are part of a collection that, to a certain extent, brings a touch of a young kid’s nostalgia when a “rare” item is found. What’s more, he believes that building trust and “a positive reputation in the community” that they represent is also key for the creators of Bored Ape Tron Club.

Friendly Ape notes that NFTs are here to stay, emphasizing what Crypto Twitter had already concluded: “the market clearly loves NFTs just like DEFI in 2020.” Understanding the market trend is what makes investors switch between blockchain products; however, gmoney.eth notes that NFTs come at a risk:

"NFT's are less liquid, which makes them riskier."

The Bored Ape Tron Club creator emphasizes that “there will certainly be all sorts of people trying to take your tokens or scam you,” which has been much of what was going on during the ICO or meme coin mania. Yet, he argues that if the foundation of a crypto project “crumbles,” so does the value of one’s asset.

However, Dean Eigenmann, co-founder at Dialectic, emphasized that NFTs don’t retain value for too long, which to a certain extent poses the same risks as other crypto projects. If there is no demand, then the transactional value will decrease.

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