Is the Non-Fungible Token (NFT) Honeymoon Over?
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As far as the crypto-world is concerned, non-fungible tokens (NFTs) were all the rage in 2021, with pixelated art selling for millions of dollars in many cases. Indeed the trend seems to have carried into 2022 with a MoonBird NFT selling for around $1 million in April 2022. In case you are wondering why some NFTs cost $1 million or more, please refer to this excellent piece by Bonnie Krypto, ‘I finally understood why some NFTs are worth millions of dollars …’
Of course, pixelated images are not the only NFTs selling for $1 million+. In March 2021, Jack Dorsey, CEO of Twitter and Square, sold his first tweet as an NFT for over $2.9 million on the “Valuables” platform run by Cent, a blockchain-powered social media network. Dorsey first tweeted “just setting up my twttr” on March 21, 2006. Now in a little more than one year, things have gone distinctly pear-shaped. Sina Estavi, a crypto entrepreneur, bought this tweet NFT for 1,630.58 ether, about $2.9 million at the time. In April 2022, Estavi announced on Twitter that he would sell the NFT on OpenSea and donate 50% of the proceeds to charity. However, at the time of publication, the highest bid for the tweet was $9,968, a $2,905,867 loss. Yep, that is $2.9 million wiped out in 1 year. Well….. they do say that NFTs are highly speculative assets. But this is some nosedive.
Across the board, a lot of NFT projects have seen a decline. Invisible Friends, an NFT collection by Markus Magnusson which at one time had a floor price of 10ETH has whittled to around 5 ETH in a few weeks. It’s still out of my budget though!!
NFTs now sell for less than $2,000 on average in March 2022. (according to market tracker NonFungible). It was over $6,800 in January. Sales fell from $160 million in January to $26 million on Thursday. Primary NFT sales have also fallen, from nearly 26,000 per day at the start of the year to under 3,200 on…
