Problems

Lack Of Social Integration In NFT Marketplaces

It became standard to build the NFT communities using channels like Discord or Twitter. While these platforms are proven to work, a lack of direct communication within the NFT marketplace usually prevents creators and collectors from building meaningful relationships. What is more, communication outside the platform can expose users to certain risks of fraudulent activities. Unfortunately, none of the existing marketplaces offer the functionality for creators and collectors to engage within the platform.

Lack Of Multi-Chain Integration Into Marketplaces

There are many blockchains used to develop and mint NFTs. However, the far majority of marketplaces are limited to a single blockchain. Each one of the blockchains has different pros and cons and the marketplaces give no option for users to choose between them. For example, some users prefer Ethereum, despite its gas fees, while others prefer less costly and more environmentally friendly blockchains.

Safety And Security Issues

By growing at such a rate and changing the digital world, the NFT market attracts all kinds of people. Innovators, aspiring creators, curious individuals, and, unfortunately, unscrupulous people who are looking for quick money. Replicating the original art and listing it on marketplaces is still a significant issue causing massive capital losses for market participants. Even the biggest NFT marketplaces still struggle to find an antidote for these safety issues.

Lack Of Financial Incentives For Users

Apart from having a huge following and getting influencer marketing deals, there are no other ways to monetize the activity on social media platforms. It usually takes lots of time or financial investments for quality content creators to get traction on these platforms. The lack of financial incentives stops many users from expressing their ideas and engaging with the community.

Unfulfilled Potential Of Metaverse The Metaverse

The Metaverse is blending the virtual and physical realities. It is the place where the physical and digital worlds collide. With companies like Meta, formerly known as Facebook, going strong into the Metaverse, it will only go bigger. However, because of the sky-rocketing expansion, the technologies around the Metaverse struggle to keep up with the growth. Moreover, the Metaverse is in a very early stage, and both developers and users still have not figured out the complete appliance of the technology.

High Ethereum Gas Fees Ethereum

Ethereum is the most widely used blockchain and has formed the foundation for most existing NFT projects. Despite being a remarkable technology, Ethereum has a major drawback, significantly impacting the space of NFTs - high gas fees. Despite all the upgrades applied to make Ethereum transactions more predictable, high gas fees still stop many individuals from participating in the NFT market.

Unutilized NFTs Use In Marketplaces

The NFT market is skyrocketing, and many non-fungible tokens have significantly increased in value. As the NFTs can only be bought and sold, many artists and owners struggle to sell highly valued NFTs, while buyers are hesitant to purchase expensive non-fungible tokens. Without the options to use NFTs without purchasing them, the marketplaces are full of unutilized NFTs, and many owners are not monetizing the NFTs they possess.