It makes more sense than most NFT products. Ownership of the NFT does something. There's an piece of artwork that isn't a total joke. It gives you some connection with other players, like owning a skin someone known was wearing when they won something.

Of course they don't need a blockchain.

A big fraction of the NFT sector is Axie Infinity, which is a Ponzi on the downslope. Their Smooth Love Potion Token is down 75%-80% from peak, and their Axie token is down about 25%. Thousands of poor people in the Phillipines have bought into this Ponzi. Since all the money comes from new users buying in, it has to collapse at some point.

OpenSea is most of the rest of the NFT sector, and most of their offerings are low-effort junk. Someone is selling "colors" - solid color squares for each of the 6 hex digit combinations you can use on the web. Really.

I'm worried that the NFT clown car is going to take down the entire virtual world sector. I'm all in favor of interesting metaverses, but what the NFT crowd is producing is total crap at insane prices. About two new vaporware NFT worlds are announced each day on Reddit.

If you are selling an NFT to US persons for something that doesn't exist yet, it's a security offering and you have to register with the SEC. The SEC brought the hammer down on the ICO crowd in 2018, which is why you seldom see ICOs any more. NFTs are mostly an effort to get around securities regulation.

The window of opportunity for crypto is closing. China has pretty much banned it. India is cracking down. The major countries that allow crypto are starting to regulate them as financial institutions. Scam operators are retreating to the Cayman Islands and Bulgaria.