As crazy as this may sound, I still believe in the opportunity of NFTs.
As a reminder, NFT = Non Fungible Token.
Simpler = It’s the ability to create scarcity and provenance for a digital file/asset by attaching some unique code to it (we saw the explosion of NFT popularity hit digital art first).
Remember Bored Apes Yacht Club?
What about Beeple? He sold a piece of digital art, The First 5000 Days (which was a collage of over 5000 pieces of his art). It sold for close to $70 million at Christie’s Auction in March of 2020.
Back in August 2021, $2.8 billion was the monthly trading volume for NFTs.
It was a bull run… that has now crashed. Hard.
According to a new report by dappGambl that reviewed data from NFT Scan and CoinMarketCap, 69,795 out of 73,257 NFT collections have a market cap of $0 Eth, leaving 95% of those holding NFT collections – or 23 million people – with worthless investments.
It’s a good reminder for speculators, collectors and appreciators: It’s not how much you paid for something, it’s how much the next person is willing to pay for it that defines the value.
It’s not just a collapse of a new tech market.
It’s not really about the technology.
It’s about the people.
It’s about greed, pump and dumps, ponzi schemes, hypesters, and more.
This doesn’t mean it’s all things related to NFTs are nefarious.
This does mean that places like the U.S. Securities and Exchange Commission (SEC) has stepped in and started dealing with it.
There are now many examples, like Los Angeles-based Impact Theory being charged by the SEC that they conducted an illegal offering in which it sold NFTs worth $30 million in 2021.
There are other examples.
What happened to the NFT market?
What are the opportunities for NFTs?
Can NFTs survive this disastrous collapse and regain credibility?
I think it can… listen in to find out why…
What is Tech Tuesday?
Every Tuesday – for just a few minutes – I join Heather Backman (my old buddy from her days on CHOM FM and Jack 103) on the air at 95.9 Star FM to give a quick blast about the current state of technology, media and Internet culture.
We call it Tech Tuesday (and we do it in just a few minutes).
Once the segment goes live on 95.9 Star FM, I will post it here for you to listen in, learn, share and engage.
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