Momint’s news impacted the whole African tech and the wider crypto community. On the surface, it would be tempting to write it off as pretty typical Web3 startup flop. I believe it’s an opportunity to teach a more nuanced and more valuable lesson. This is not an exercise in blaming or celebrating failure, this is an opportunity to extract the hard-won wisdom from the ashes of innovation. You understand, occasionally the pioneers have to bleed so that the settlers can build.

First Isn't Always Best, Really?

Look around and you’ll notice that we’ve been hoodwinked by the narrative that being first to market is a golden ticket. Momint’s story changes that narrative dramatically. Founded in 2021, it was the first South African NFT marketplace to allow users to transact in local currency. That's HUGE! They captured global headlines with their Nelson Mandela arrest warrant NFT which sold for just over $130,000. That’s how they even got $2.1 million in seed funding. Sounds like a roaring success, right?

Think about it: they were blazing a trail through uncharted territory. There wasn’t a regulatory framework, and there was a dearth of talent focused on NFTs. On top of that, there was a huge education gap for potential users. They were literally inventing the road—and the car—simultaneously. That's a brutal combination. It’s akin to attempting to develop a reliable space program in the 1950’s using nothing but slide rules and a wish upon a star. That’s wonderful, but the deck is loaded against you.

Timing matters. Sometimes being second or third to market is the best strategy. The good news is that you can learn from these pioneers’ mistakes and walk into a more mature ecosystem. It’s about choosing your battles. Fighting each and every single front to get the same kind of mainstream success is a losing fight.

The NFT space is well-known for its hype cycles. Remember the Bored Ape Yacht Club frenzy? The CryptoPunks mania? When chatbots are all the rage, it’s easy to get swept away in the excitement. Above all else, the true backbone of any profitable NFT venture exists in its tokenomics. And this is where I think Momint failed, or at least didn’t focus early enough.

Hype Fades, Tokenomics Endure.

Although Amazing and their cohorts had tremendous sales success out of the gate, were these tokenomics that they were building on sustainable? Did they make it so long-term holding and true community engagement were all rewarded? Or were they designed to do nothing more than cash in on short-term excitement?

I’m unsure about their specific tokenomic models. The fact that they can’t figure out how to scale beyond their early adopters suggests a larger issue with their strategy. Now compare this to projects such as Axie Infinity (prior to its own tokenomic disasters, I should add). Axie, at its peak, created a self-sustaining ecosystem where players could earn real income, incentivizing participation and driving demand for the NFTs.

You have to see what the long-term incentives are that are baked into a project’s tokenomics. Avoid the temptation to simply follow the hype—get to know that economic engine. A shiny NFT is trash if the system that undergirds it is fundamentally flawed.

Momint’s real-world focus, especially through their work with SunCash, was praiseworthy — if not inspiring. Tokenizing solar cells is a really inspiring idea! It gives investors a 12% return in USDC while getting power to schools and communities that need it. It’s politically neutral in that it doesn’t lean into partisan dynamics by zeroing in on environmental causes.

  • Good Tokenomics: Incentivizes long-term holding, community engagement, and value accrual.
  • Bad Tokenomics: Relies on short-term hype, lacks clear incentives, and concentrates wealth in the hands of a few.

Real-World Utility: A Premature Promise?

Here's the tough question: was the market ready for it?

While we understand that the NFT space in general is still much more speculative and digital collectible driven. Though the promise of real world utility is indeed tantalizing, mass adoption is still further down the road. Were the returns that SunCash was promising realistic or sustainable? Was the target market adequately screened to ensure that consumers are aware of the risks involved with DeFi investments? Did the technology really tackle an urgent issue? Or was it simply an impressive marketing ploy designed to lure sustainability-minded investors?

I’m not arguing that real-world utility is a bad concept. Far from it. As Momint’s experience demonstrates, timing and execution are vital. Perhaps the focus on real-world applications was premature, given the nascent state of the NFT market and the lingering skepticism surrounding the technology.

Momint's story is not just a failure. As for the more than 400,000 transactions and 53,000 users they onboarded … just take their word for it. Retrospectively, it’s a cautionary tale about the difficulties of trying to lead the innovation charge in an incredibly volatile and dynamic space. Let’s take a lesson from their experience and be willing to ask the difficult questions. Together, we can build a better, more sustainable and resilient future for the NFT space. Because, quite frankly, if we aren’t, we are setting ourselves up to repeat their mistakes. And nobody wants that.

Momint's story is not just a failure. The over 400,000 transactions and 53,000 users they onboarded are a testament to their impact. It’s a cautionary tale about the challenges of pioneering innovation in a volatile and rapidly evolving landscape. Let's learn from their experiences, ask the tough questions, and build a more sustainable and resilient future for the NFT space. Because, truthfully, if we don't, we are doomed to repeat their mistakes. And nobody wants that.