NFTs have evolved into at least four categories.
First, there are name NFTs like yourname.eth. These are the easiest to understand because they are just like domain names or usernames.
Next, there are profile NFTs like Bored Ape. These have value because they are like club memberships, and people make them part of their public identity.
Next, there are Zora-style content coins like horse (see reply), which update the art NFT model by setting up a market for every Instagram-style post. Buyers buy these coins to show appreciation for the creator, to speculate on how much more popular a given post will get, and sometimes to show (via onchain timestamps) that they’re early to spotting new talent.
Finally, there are micro-NFTs that just represent onchain data, akin to “typed likes”. Many social actions are now cheap enough to record onchain.
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The innovation of @zora style content coins over 1-of-1 art NFTs is simply that there is always a buyer, at *some* price, for a content coin. Because they have Uniswap as the buyer.
Whereas art NFTs are much more illiquid — so you can buy, but it’s harder to sell.
Moreover there can be as many buyers of a Zora-style content coin on a post as there are viewers.
[1]: Horse is a viral mint by @jacob that illustrates what Zora could be. A monetized Instagram.
“There’s always a buyer” key point, for 3 years NFTs have tried to implement some form of this. Zora’s flawless execution of this model should be studied
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Zora’s ERC20 contentcoins currently have good liquidity, but the question is whether they can still be considered NFTs.
I think their earlier ERC20z model, which allowed tokens and NFTs to be swapped, was a more direct solution to NFT liquidity. Moreover, Sudoswap has explored similar ideas, and Blur improved liquidity by encouraging offers.
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Zora coins offer a different speed of collecting - the fastest
1/1 NFTs represent the opposite end of the collecting speed collection with limited editions and open editions filling out the middle
Interesting to note the relative drop in value as speed increases with these different types of collectible assets
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