> For the complete documentation index, see [llms.txt](https://bearlabs.gitbook.io/whitepaper-bearlabs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bearlabs.gitbook.io/whitepaper-bearlabs/growing-pains-and-joys.md).

# Growing Pains and "Joys"

As NFTs began to attract mainstream attention, savvy investors from other industries and giant corporations also began to observe and even integrate with the space.

This included some of the most notable companies in the world, such as Gucci, Nike, Coca-Cola, and Taco Bell.

Even significant sporting leagues like the MLS, NBA, NFL, and the UFC joined in on the rush.

These companies focused on new and unique ways to provide utility to their communities, which further increased the pressure placed on NFT projects (both existing and those in the startup phase) to do the same.

A metaphorical bar had been set across the industry. A new minimum standard had been established, and while ventures that planned to make quick and easy profits by releasing dull and lackluster projects loathed this industry shift, it is indeed exactly what was needed.

Competition within this sector (between companies) had finally arrived, which, similar to every other product, service, or industry in the world, forced an increase in the quality of deliverables and, in this case, utility.

It became more accessible for experienced investors and even those green to the crypto space to identify and avoid "rug pull" projects as they now had metrics to measure against.

Creative utility solutions were presented through club memberships, access to grand events, entrance to giveaways, the chance to win trips, and other similar methods.

The new direction the sector was headed in was undoubtedly an improvement from its previous path; however, still flawed.

These new incentives were, in a sense, still "hype" oriented due to the superficial nature of their provided value. Albeit still an upgrade from its predecessors, the offered value propositions were still not anchored to strong enough incentive models that could uphold the project even when the hype diminished, and more specifically when the market downturns appeared.

As long as the greater crypto market was trending upwards, garnering fresh outside capital daily, the model would continue to work; however, as the world witnessed, upon entering the bear market of late 2021, even these projects began to lose steam.

By March 2022,  according to a [Bloomberg article](https://www.bloomberg.com/news/articles/2022-03-26/nft-collection-failures-begin-to-mount-in-flashback-to-ico-bust), nearly 33% of all pre-existing NFT collections had expired as trading volumes halted to zero. Even those projects whose new ways of providing utility once commanded attention across various chains had become obsolete.