NFTs are a clever way to leverage small amounts of mined ETH into large amounts of KYC-free ETH

For those concerned about privacy, trying to unlink your private wallets from your exchange account, after purchasing and moving from an exchange, is always a struggle.

You could try to use a mixer like tornado.cash, but now your Ethereum is associated with money laundering, and may very well be mixed with illegally obtained funds.

However, with NFTs, you can mine a small amount of ETH (well, "small" depending on gas fees), mint an NFT, and then "purchase" the NFT from its "anonymous" creator.

Now that Ethereum is disconnected from your identity, and you have plausible deniability that you just really wanted to buy a cock NFT.