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Why You Should NOT Make NFTs in 2022

By Sawan Kumar
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Why You Should NOT Make NFTs in 2022 — A practical framework for business growth in 2026, covering the four core levers: lead volume, conversion rate, average transaction value, and retention. Each lever is amplified by AI automation. Based on Sawan Kumar's direct experience coaching businesses across Dubai and globally, with 79,000++ students applying these strategies.

Key Takeaways

  • 1The 4 business growth levers — lead volume, conversion rate, transaction value, retention — are multiplicative: improving all four simultaneously produces exponential results.
  • 2Doubling conversion rate produces the same revenue impact as doubling leads, at near-zero cost — Sawan Kumar recommends fixing conversion before scaling lead spend.
  • 3AI automation amplifies all four growth levers: faster lead response, smarter content production, personalised upsells, and automated retention sequences.
  • 4Organic channels (LinkedIn, YouTube, SEO) compound over time — a post from 18 months ago still drives traffic today, giving asymmetric ROI vs paid ads.
  • 5Annual billing (with 2 months free) simultaneously increases average transaction value, improves cash flow, and reduces churn — a three-lever improvement from one pricing change.

Why You Should Not Make NFTs in 2022: A Critical Analysis

Making NFTs in 2022 requires careful consideration before jumping into this volatile market. While NFTs (Non-Fungible Tokens) have gained significant attention and created opportunities for some creators, the landscape in 2022 presented substantial challenges, risks, and barriers to entry that made NFT creation inadvisable for most people. Understanding why you should not make NFTs in 2022 involves examining market saturation, environmental concerns, technological complexity, financial risks, and the declining consumer interest that characterized this particular year in the crypto space.

Understanding the NFT Market Saturation Problem

One of the primary reasons why you should not make NFTs in 2022 was the unprecedented market saturation that had developed. The NFT space exploded in 2021, with millions of collections launched across multiple platforms like OpenSea, Rarible, and others. By 2022, the barrier to entry had become so low that the market was flooded with duplicate, low-quality, and uninspired NFT collections.

The Reality of Market Oversupply

The sheer volume of NFTs created meant that standing out required not just artistic talent or a unique concept, but also significant marketing resources, an established audience, and considerable luck. Most NFT collections launched in 2022 failed to gain traction, with creators earning little to no return on their time and investment. The novelty that had driven the 2021 NFT boom had largely worn off, and buyers became far more selective about which projects they supported.

Why Timing Mattered in 2022

2022 proved to be a particularly difficult year for NFT launches because of broader market sentiment. Cryptocurrency experienced a significant downturn during this period, with Bitcoin and Ethereum both losing substantial value. This bear market environment made collectors and investors far less willing to take chances on unproven NFT projects, meaning that even well-executed collections struggled to find buyers.

Financial Risks and the Reality of Creating NFTs

Creating and launching an NFT collection involves genuine financial costs that most aspiring creators underestimate. Why you should not make NFTs without understanding these expenses is a critical lesson many learned the hard way in 2022.

Hidden Costs of NFT Creation and Launch

The process of launching an NFT collection includes multiple expense categories:

  1. Smart contract development and deployment: Creating the smart contract that powers your NFT collection costs money in gas fees and potentially developer fees, ranging from hundreds to thousands of dollars.
  2. Platform listing fees: While some platforms offer free listings, premium placements and featured positions require payment.
  3. Marketing and promotion costs: To gain visibility in a saturated market, you'll likely need to invest in paid advertising, influencer partnerships, and community management.
  4. Technical infrastructure: Hosting assets, managing IPFS nodes, and maintaining websites and Discord communities all carry costs.
  5. Legal and compliance fees: Depending on your jurisdiction, you may need legal consultation to ensure compliance with securities regulations.

The Low Probability of Financial Return

Statistics from 2022 revealed that the vast majority of NFT projects generated minimal or zero revenue. Many creators invested hundreds or thousands of dollars to launch collections that failed to sell even a single NFT. The risk-reward ratio made NFT creation an increasingly poor investment decision for most people in 2022.

Environmental and Ethical Concerns with NFTs

A significant reason why you should not make NFTs in 2022 involved the growing environmental consciousness and legitimate concerns about the ecological impact of blockchain technology, particularly proof-of-work systems like Ethereum's network before its transition.

Energy Consumption and Carbon Footprint

Each NFT transaction, including minting and trading, requires computational energy that contributes to carbon emissions. While some argued that Ethereum's eventual transition to proof-of-stake would solve this problem, throughout most of 2022, the environmental cost remained substantial. Creators faced legitimate criticism from environmentally conscious consumers who viewed NFTs as wasteful.

Ethical Questions About NFT Value

Beyond environmental concerns, 2022 saw increasing scrutiny of the fundamental value proposition of NFTs. Critics questioned whether JPG files with digital ownership records truly justified their existence, particularly when they offered no practical utility beyond speculation and collectibility. This philosophical and ethical debate made many creators uncomfortable about participating in the space.

Technical Complexity and Skill Barriers

Another critical reason why you should not make NFTs without proper preparation involves the technical knowledge required to navigate the blockchain ecosystem safely and effectively.

Blockchain Knowledge Requirements

Successfully creating and launching NFTs requires understanding cryptocurrency wallets, private keys, smart contracts, gas fees, blockchain networks, and various platforms. This technical complexity creates substantial barriers for non-technical creators. Many people who launched NFTs in 2022 without proper knowledge made costly mistakes, including:

  • Losing access to wallets through security lapses
  • Paying exorbitant gas fees through poor timing or network choice
  • Creating smart contracts with bugs or vulnerabilities
  • Falling victim to scams or fraudulent practices

Learning Curve and Time Investment

Acquiring sufficient knowledge to create and manage NFTs responsibly requires significant time investment. For most people considering NFT creation in 2022, this learning curve was an inefficient use of time, particularly given the low probability of commercial success.

The Declining Market Sentiment and Consumer Interest

By 2022, the initial enthusiasm that had driven NFT adoption was rapidly cooling. Consumer interest in NFTs, which had peaked in late 2021, experienced a sharp decline throughout 2022. This shifting sentiment made it an inherently poor time to launch new NFT projects.

Mainstream Backlash and Cultural Criticism

NFTs became a cultural lightning rod in 2022, with significant public criticism from celebrities, technologists, and environmentalists. This negative sentiment created a challenging environment for creators trying to build communities around NFT projects. Rather than being viewed as innovative, many NFT creators faced mockery and social backlash.

Market Data and Trading Volume Decline

Trading volumes on major NFT marketplaces like OpenSea declined substantially throughout 2022. This objective market data demonstrated that fewer people were actively buying NFTs, making it statistically unlikely that a new collection would find interested buyers.

Alternative Approaches and Better Uses of Creative Energy

Rather than pursuing NFTs in 2022, creators had more viable alternatives for monetizing their digital art and building audiences. Understanding these alternatives helps explain why you should not make NFTs when better options existed.

More Established Digital Monetization Methods

Proven alternatives included:

  • Digital art sales platforms: Platforms like Gumroad, Etsy, and Shopify offered established marketplaces without blockchain complexity.
  • Content creation and creator economy: YouTube, Patreon, Substack, and similar platforms provided direct creator-to-audience revenue models.
  • Traditional licensing and merchandise: Licensing digital art to merchandise creators generated revenue without blockchain involvement.
  • Community building and subscription services: Building engaged communities through Discord, membership sites, or subscription platforms created sustainable income.

Focusing on Fundamentals First

For most creators, the better strategy in 2022 was building a genuine audience and establishing value before considering experimental monetization methods like NFTs. Creators with established audiences and proven value propositions could potentially succeed with NFTs, but starting with NFTs before building these fundamentals was backward.

Conclusion: Making Informed Decisions About NFTs

The question of why you should not make NFTs in 2022 encompasses market saturation, financial risks, environmental concerns, technical complexity, declining consumer interest, and the existence of superior alternatives. While NFTs may eventually develop legitimate use cases and applications, 2022 was a particularly poor time to launch collections for most creators.

The key lesson is that not every emerging technology is appropriate for every creator at every time. NFT creation required significant capital, technical knowledge, and luck to succeed in 2022—resources better invested in building foundational audience, skills, and value propositions. Before considering any NFT project, creators should realistically assess the market conditions, their competitive advantages, and whether their time and money would generate better returns through established channels.

The NFT space may evolve, and opportunities may emerge in the future, but the specific conditions of 2022 made new NFT collection launches inadvisable for the vast majority of aspiring creators and artists.

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Further Reading

Explore more from Sawan Kumar — AI consultant and educator based in Dubai, trusted by 79,000+ students across 150+ countries.

Business Growth Strategies That Work in 2026: A Practical Framework

✍️ Expert perspective by Sawan Kumar

AI Consultant & Educator · Chartered Accountant · Dubai-based Business Coach · Founder of sawankr.com

As a Chartered Accountant turned AI consultant and business educator, I approach business growth differently from most coaches — I look for levers with measurable ROI. Having worked with 79,000++ students and dozens of 1:1 coaching clients across Dubai, the UK, and North America, these are the strategies that consistently produce results.

🎓 79,000+ Students🌍 150+ Countries4.5/5 Avg Rating📍 Based in Dubai

Most business growth content gives you generic advice: "focus on your customer," "build a great product," "hire the right people." These things are true but not actionable. This guide gives you the specific, implementable strategies that businesses in our community have used to grow — with real numbers.

The 4 Levers of Scalable Business Growth

Lever 1 — Increase Lead Volume

More qualified leads entering your pipeline directly increases revenue potential. In 2026, the highest-ROI lead generation channels for most businesses are: paid social advertising (Meta, LinkedIn, TikTok depending on your audience), SEO content marketing (blog posts and YouTube targeting buyer-intent keywords), and strategic partnerships/referrals. A business growing from 50 to 100 leads/month — while keeping conversion rates constant — doubles its revenue opportunity. The trap: chasing lead volume before your conversion process is optimised. Fix the leaky bucket before filling it faster.

Lever 2 — Improve Conversion Rate

Doubling your lead volume costs money. Doubling your conversion rate costs almost nothing. A business converting 10% of leads to customers that improves to 20% doubles revenue from the same marketing budget. Conversion improvements come from: faster lead response (automated instant replies via GoHighLevel), better qualification (asking the right questions early), stronger social proof (testimonials, case studies, numbers), and clearer value propositions. Track your lead-to-consultation and consultation-to-close rates weekly — most businesses don't know these numbers, which is why they can't improve them.

Lever 3 — Increase Average Transaction Value

Getting existing customers to spend more is almost always easier than acquiring new ones. Tactics: premium versions of your core offer (e.g., VIP coaching tier vs standard), bundles (combine 3 products/services at a 20% discount), upsells at the point of sale ("most customers also add..."), and annual vs monthly billing (offer 2 months free for annual payment — this also improves cash flow and reduces churn).

Lever 4 — Increase Purchase Frequency / Retention

A customer who buys twice is worth 2× more than a customer who buys once. Systems that increase retention: automated check-in sequences 30/60/90 days post-purchase, loyalty programmes, subscription models that create ongoing value, and a genuine client success focus (proactively checking in on results, not waiting to be asked). In knowledge-based businesses (courses, coaching, consulting), retention is built through community, ongoing content, and clear progress tracking.

AI as a Business Growth Multiplier

Every one of these four levers is amplified by AI and automation:

  • Lead volume: AI-powered content creation produces more SEO content in less time. AI ad optimisation improves campaign performance automatically.

  • Conversion rate: AI chatbots qualify leads instantly, 24/7. Automated follow-up sequences ensure no lead goes cold.

  • Average transaction value: AI analyses purchase patterns and suggests the most likely upsell for each customer segment.

  • Retention: Automated personalised check-in sequences keep customers engaged without manual effort.

Businesses that combine these four levers with AI automation are growing at 2–3× the rate of those that don't. Sawan Kumar's AI Mastery Course covers exactly how to implement AI across all four growth levers.

🚀 Ready to go deeper?

Join the AI Mastery Course — practical, project-based training trusted by 79,000+ students across 150+ countries.

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