Ethereum's hitting $2700, and the champagne's flowing. Everyone's asking the same question: are NFTs about to moon again? Are we on the verge of a new Bored Ape Yacht Club-style craze? Or is this all just a short-lived, bubbly high gone bad ending in a painful return to sobriety?

The SEC’s surprisingly becoming friendly, or at least, more friendly. We applaud Chairman Atkins for advocating an “economic liberty” and “innovation” centered approach to DeFi. It’s enough to make you think somebody spiked the punch bowl. Perhaps they came to understand that going after every crypto innovation with the ban hammer is not a long-term successful approach. Or maybe it's just election year posturing. Whichever the case, the market’s response is reminiscent of a Shiba Inu catching sight of a tennis ball – unsuppressed, unfiltered joy.

Sure, DeFi coins are pumping. Uniswap, Aave, MakerDAO – I mean, they’re all just rolling in it. Even Bitcoin and XRP are arriving late to the party with a Comsuption-optimized™, lukewarm six-pack. The real question is: will this trickle down to the NFT space?

Will the Tide Lift All Boats?

The optimistic take is obvious: a rising tide lifts all boats. Just like everyone knows that if Ethereum’s not doing well, NFTs aren’t doing well by default. More liquidity, more investor confidence, more dumb money changing hands at ridiculous valuations.

Here’s where my inner doomer comes out. The NFT market is a fragile ecosystem, much like a coral reef, not a battleship. It’s not real, tangible stuff—it’s based on hype and speculation and just a boatload of belief. Convincing someone that a JPEG of a cartoon ape should be worth more than their house. And when that faith slips, which it does, the shit hits the fan.

Think about it. The previous NFT craze was powered by Bored Apes that appeared to be having an existential crisis. Will the same sort of mania take the market by storm once more? Are they going to actually begin cashing out of their 401k to invest in pixelated kittens or dogs.

This time feels different. The market is more mature, more discerning. People have been burned before. They're (hopefully) a little wiser. "Wiser" doesn't mean immune to FOMO.

Here's something nobody is talking about. What about the artists? The creators? The people who actually make the NFTs?

Art, Freedom, and Regulatory Overreach

The original promise of NFTs was empowerment. A way for artists to bypass gatekeepers, connect directly with their fans, and earn a fair living from their work. It was supposed to be a revolution.

What happens when regulation comes knocking? Will it indeed help safeguard artists, or will it ultimately deter their artistic expression? Will it work to level the playing field, or will it further raise new barriers to entry?

I'm genuinely worried. As we have said before, there’s a delicate balance between safeguarding investors and maintaining healthy, vibrant innovation. And knowing the SEC, they’re more prone to stumbling across that line than strutting it with poise.

It’s easy to picture a world in which every NFT project, regardless of its purpose, would have to go through a myriad of regulatory hurdles. Picture this dystopian reality—an America where artists are punished for innovation, punished for creativity, punished for art.

And that’s not the future I wish to live in. It most definitely is not the future any NFT enthusiast should hope to see.

Look, I want NFTs to succeed. I want artists to thrive. In other words, I want this emerging space to grow up and get better.

Is This a Bull Run, Or a Bull Trap?

I'm a realist. I've seen too many bubbles burst. I've seen too many people get burned.

So, before you go all-in on the next big NFT project, ask yourself a few questions:

Only if you can confidently answer “yes” to each of those questions, then proceed. Ride the wave. Enjoy the party.

  • Do I actually like this art? Or am I just hoping to flip it for a profit?
  • Am I investing more than I can afford to lose?
  • Am I prepared for the possibility that this could all go to zero?

If you’re uncertain at all, perhaps it’s best to err on the side of caution and reconsider. Perhaps the best course is just to sit back and see how this shakes out.

After all, hangovers are never fun. And a crypto hangover has a way of being especially savage.

Ethereum's rally is exciting. The SEC's shift is encouraging. The NFT space largely remains a wild west. Proceed with caution.

Perhaps, though I know it’s a lot to ask, save some of that bubbly for a future unreleased day. You might need it on any given day.

So just keep this in mind, that’s the lesson kids DYOR don’t ape into things you don’t understand!

Remember kids, DYOR (Do Your Own Research) and don't ape into things you don't understand!