When the DOOD token launched, there was quite a bit of excitement. As the brainchild of the world-famous Doodles NFT collection, it rocked the already raucous NFT world. A minimum of a $100 million market cap from day one? It reeked of excitement, it whistled of hype, and quite honestly, a lot of irrational exuberance. Then came the critical downturn, plunging down to approximately $50 million. Was this a failure? Not necessarily. It was a much-needed reality check.

NFTs, Tulips, and Beanie Babies?

Let's be honest: the NFT market, at times, feels less like an investment landscape and more like a digital echo of the Tulip Mania or the Beanie Baby craze. Remember those? Consumers waiting in line, fueled by FOMO, unsuspecting that they were purchasing the equivalent of a glorified rock. The rise and fall of the DOOD token follows this script to a tee. Alas, that’s the real world—and a wake-up call that glossy renderings and Hollywood hooks don’t ensure lasting benefits. Everybody loves a good story and Doodles is making a magical one about DreamNet and decentralized storytelling. But stories alone don't pay the bills. We want to see the tangible end-user benefits, the real-world use case, sustainable business model. The juxtaposition to Pudgy Penguins’ ascendant character development into the mainstream is a fascinating one, but can Doodles follow through? The question is can anybody do that, be that successful consistently.

Airdrops, Sell Pressure, and True Believers

The Doodles team, for what it’s worth, delivered on the sell pressure coming from the airdrop before it even happened. Austin Hurwitz, Doodles’ head of strategy, even claimed as much. Acknowledging the problem doesn't solve it. Airdrops are great for the initial distribution and creating some hype, but they’re usually followed by a quick sell-off. Why? Mainly, because so many of the recipients are just in it for a fast buck. They're not invested in the long-term vision; they're playing the short game. Our intention in doing so should be equally clear — we want those tokens to go to the “true believers.” These are the folks who really believe in our project and its mission. Hope is not a strategy. True believers are wonderful, but you can’t create a long-term, resilient ecosystem on passion and enthusiasm out of the gate. There has to be real value, and as of today, that value is proving to be mainly theoretical. While DOOD’s intended incorporation into the Doodles shop is a positive first step, it is teeth-gnash-worthy at best.

Utility or Just Another Memecoin?

Doodles is seeking to establish DOOD as more than a memecoin, identifying it as the “first universe token” of DreamNet. Besides, they envision it powering their already-booming collectibles market, gaming, DeFi and maybe even beyond. The ambition is admirable, but the roadmap is lacking in detail. Future utility has often been the promise in the crypto space, but execution has been legendary absent. Until we see tangible applications, DOOD risks becoming just another memecoin, riding the wave of hype until the next shiny object comes along. If we’re honest, the market for shiny objects is cutthroat.

What can you do?

  • Due Diligence is Key: Don't just ape into projects because of hype. Research the team, the technology, and the long-term vision.
  • Understand the Risks: NFTs are highly speculative assets. Be prepared to lose your entire investment.
  • Diversify Your Portfolio: Don't put all your eggs in one digital basket. Spread your risk across multiple asset classes.
  • Be Wary of Airdrops: Airdrops can be a great way to get involved in new projects, but don't expect them to be a guaranteed path to riches.
  • Focus on Fundamentals: Look for projects with real-world utility and a sustainable business model.

The DOOD token's dip is a symptom of a larger problem: the NFT market's tendency towards hype and speculation. We have to be very careful about these investments. Let’s find a better way to do our due diligence and invest in projects that promise value in the real world. Let’s move forward with a true mixed economy. We want to foster the spirit of innovation, but it needs to be tempered with good financial practices and a little common sense. This latest token drop is a reminder of the risks people face when interacting with NFTs.