Vitalik Butrin criticizes how NFT is being used to makes celebrities richer
Mr. Butrin is of the idea that helping people like Elon Musk to make a profit through NFT (Non-fungible tokens) market is not using it in a proper way, yet he thinks it can be put into good use.
The co-founder of Ethereum reckons that Social causes like funding public schools and charity deserve to be backed by NFTs rather than benefiting the already rich and believes that NFTs shouldn’t be employed when the technology is considered as a “casino that largely benefits already-wealthy celebrities.”
Mr. Butrin also thinks that assisting the rich like Tesla CEO to gain $1 more million via NFT sale is not a worthy thing to do socially. He believes if people cooperate, NFTs could improve some parts of the communities and countries.
Public attention and resources are usually considered by most people to be legitimate said Mr. Buterin in a blog post with this title, “The Most Important Scarce Resource is Legitimacy,” and in this article, he describes legitimacy which is a game theory term as follows;
A pattern of higher-order acceptance. An outcome in some social context is legitimate if the people in that social context broadly accept and play their part in enacting that outcome, and each individual person does so because they expect everyone else to do the same.”
Simply put, if people believe the fact that others would do the same if that thing benefited them individually, then all the people would act similarly. Therefore, this phenomenon can explain the roughly $500M volume of the NFT market in the past couple of months and Buterin believes that the fact that people choose to purchase a certain NFT and not the other is all about legitimacy, and in this regard he says;
“If everyone agrees that one NFT is interesting and another NFT is lame, then people will strongly prefer buying the first, because it would have both higher value for bragging rights and personal pride in holding it, and because it could be resold for more because everyone else is thinking in the same way”.
Buterin reprimands Elon Musk and believes that Well-known people such as Tesla CEO can have a huge impact not only on NFTs but also on the crypto market. On several occasions, he tweeted about some coins such as Bitcoin and Doge and changed their price significantly in both directions. However, he admires Jack Dorsey, Twitter CEO’s auction on the selling of his “first tweet” which was intended for charity and was sold for $2.9M.
Mr. Buterin says if people like celebrities be the NFT focus then they do not have any social value as the money is a personal gain rather than being spent for a good cause;
“But they could also be a missed opportunity: there is little social value in helping Elon Musk earn yet another $1 million by selling his tweet when, as far as we can tell, the money is just going to himself (and, to his credit, he eventually decided not to sell). If NFTs simply become a casino that largely benefits already-wealthy celebrities that would be a far less interesting outcome.”
He also offered 2 potential solutions to legitimize NFT to serve as a funding mechanism for causes that promote social good. This can be done in 2 ways; through a decentralized autonomous organization which is governed by its community collective approval to approve the NFTs if they serve the aforementioned causes even if it’s a portion of the sale. Or to ask social media platforms to include NFT displays in their profile to show off their good act and persuade other users to contribute to such causes.
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