NFTs Are Not Investments: Understanding Their Real Use

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NFTs Are Not Investments: Understanding Their Real Use

Educational content only. This is not financial advice. The goal is to understand NFT utility beyond speculation.

Why the “investment” framing is risky

When NFTs are presented primarily as investments, users may ignore fundamentals: security, custody, and real-world usefulness. Speculation can distort incentives and encourage misleading marketing.

Real utility categories

  • Access: gated content, events, communities, tools
  • Membership: identity or affiliation with verifiable ownership
  • Credentials: certificates, participation proofs, achievements
  • Licensing: controlled rights for digital goods
  • Collectibles: cultural artifacts with provenance

How to evaluate utility (practical checklist)

  • What does the NFT enable today?
  • Is the utility enforced on-chain or is it just a promise?
  • Are there clear terms and transparent documentation?
  • Is the project’s communication realistic and non-promotional?

What it is NOT

  • Not a promise of profit
  • Not a substitute for understanding risk

[Insert image: “NFT utility map” (Access / Membership / Credentials / Licensing / Collectibles)]