The non-fungible token (NFT) market is experiencing a notable resurgence in 2024, shifting from its previous speculative frenzy towards utility-driven applications. This renewed interest, however, has coincided with the reappearance of founders from previously dormant or "dead" NFT projects, raising concerns about potential scams. Nick James, a prominent figure in the NFT space, highlighted this trend on social media, stating, "I'm kind of surprised (tho I shouldn't be) how many dead project's founders have already surfaced in this recent NFT run-up."
The NFT market saw significant growth in 2021-2022, followed by a sharp decline in 2023, with reports indicating that as many as 96% of NFT collections launched in 2024 have effectively "died" due to lack of trading activity. This downturn, often referred to as the "crypto winter" or bear market, led to many projects being abandoned or experiencing "rug pulls" where founders disappeared with investor funds. The current market uptick, driven by factors such as the broader crypto bull run and increased institutional interest, is now witnessing some of these past project creators attempting to re-engage.
James's tweet underscores a dual reality: while opportunities exist within dormant projects for genuine builders, the re-emergence of certain founders also signals a heightened risk of fraudulent activities. He cautioned, "There are opportunities with dormant projects, but also plenty of scammers back at it." This sentiment reflects ongoing concerns within the community about market manipulation and the need for due diligence, especially given the history of scams in the nascent NFT space.
In contrast to projects that faltered, James specifically praised ChimpersHQ, noting that the project "never missed a beat" during the challenging bear market. ChimpersHQ, known for its pixel art NFTs and engaging community, maintained consistent activity and development throughout the downturn. This dedication to building and delivering on its roadmap, even when market conditions were unfavorable, positions projects like ChimpersHQ as examples of resilience and long-term vision within the volatile NFT ecosystem. The distinction drawn by James highlights the evolving landscape where genuine utility and sustained development are increasingly valued over speculative hype.