Everyone is talking about the famous online digital NFTs. If you haven’t already heard of the term then where have you been hiding? It is literally the talk of the town – well more like the talk of the metaverse.
Metaverse, a term first coined in science fiction, is a combination of the prefix ‘meta’, meaning beyond the ‘universe’.
It refers to shared virtual worlds where land, buildings, avatars and even names can be bought and sold, often using cryptocurrency.
The term covers a wide variety of virtual realities, from workplace tools to games and community platforms.
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 seemingly nowhere, NFTs have now become a $40 billion market.
As a person interested in NFTs, you know how they are revolutionizing the way we perceive our world by bridging our tangible and virtual realities.
There are many different non-fungible tokens and token types. Depending on what NFTs you have invested in will determine what you watch.
With the world beginning to move into a new digital space, many disciplines are following suit, including:
Now before I begin this is a major 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 NFT’s aren’t exactly looking too good right now.
NFTs have grown at an alarmingly fast rate over the past few years but the talk of the town is that at some point, this bubble will burst.
Though NFTs will eventually crash, it is not known precisely when it will happen. The best estimate is soon.
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.
Like most stock investments, the inflated buying and selling can only be supported for so long before interest wanes and prices plummet.
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 assets that are “totally useless and meaningless,” 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.
While billionaires have been able to casually spend $50,000,000 on a single Picasso masterpiece, the rest of us have been locked out of this exclusive asset class.
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 still to come.
The stock market is like a crazy rollercoaster flying up and then spiralling down.
You never know what might happen next. But all I’m saying is – be careful with your coins out there.