Everyone is talking about the famous online digital NFTs. Where have you been hiding if you haven’t heard of the term?
NFTs, or non-fungible tokens, are a new type of virtual asset that has fuelled much of the growth in the metaverse.
In 2021, NFTs became dinner table talk after a Beeple piece sold for $69.3 million in crypto at a Christie’s auction. Out of nowhere, NFTs have become a $40 billion market.
With the world beginning to move into a new digital space, many disciplines are following suit, including:
Before I begin, this is a necessary disclosure: the following is not, by all means, financial advice, so don’t take it too literally.
I am just letting you know that if you are someone who has put some cash down on a bedazzled chimp or a punk figure, the future of NFTs isn’t exactly looking too good right now.
NFTs have grown alarmingly fast over the past few years, but the town’s talk is that this bubble will burst at some point.
Those watching NFTs on the market have already witnessed crashes, such as the June 2021 crash. This was when, according to Hypebeast, “the sales data processed only $19.4 million in NFT sales.”
Compared to the $170 million in NFTs transacted the week of the peak. The market saw a 90 per cent drop.
Although NFT collectables like CryptoPunks and Hashmasks are still going strong, there looks to be a shift from crypto-art to metaverse NFTs.
So for NOW on the upside, 2022 NFTs are here to stay.
Research indicates that during the last 30 days, across ten different blockchain networks including Ethereum, Ronin, Solana, Flow, Polygon, and more, there’s been $2.73 billion in NFT sales alone.
Now that’s big money.
But three-quarters of them never saw another transaction.
Let that sink in. Investors are unable to find any buyers for their assets, meaning the NFT owners can’t even sell what they’re holding for a loss to recover a portion of their capital.
Imagine buying a stock and not being able to sell it – it’s essentially worthless.
Most NFT investors and holders say, “don’t get too caught up in getting to the peaks and be mentally prepared for the valleys to come.”
Well, that’s easy for them to say when you have investments on the line, slowly dropping like a tear on your face.
Hundreds and thousands of predictions have been pouring in on the internet.
Fellow writer and bitcoin hater David Gerard predicts “there will be some attempt to invent a new form of crypto magic bean that’s more blitheringly stupid than NFTs, but I’m at a loss as to what it could be.”
Even billionaire Elon Musk tweeted this prediction last year:
According to Bloomberg research, the NFT market has become incredibly illiquid, and investors are holding “totally useless and meaningless” assets without any ability to find a buyer.
Luckily, many investors (of NFTs and traditional assets alike) are turning to an asset class that’s only recently become available to everyday investors – fine art.
However, celebrities are already leveraging the NFT-backed technology to create digital content for their fans and relevant community.
Paris Hilton, Lindsey Lohan, Melania Trump, Snoop Dogg, Tiger Woods, Usain Bolt, Tom Brady, Faf du Plessis, Shakib Al Hassan and many more global icons launched their NFT collections.
And let’s not forget about the brands and social media rebrand of Meta.
The stock market is like a crazy rollercoaster flying up and spiralling down.
You never know what might happen next. But all I’m saying is – be careful with your coins out there.