A third of NFTs have lost all their value and another third are worth less than their cost: this is how the bubble is bursting


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The year 2021 was the year of the explosion of new blockchain assets: NFTs or Non-Fungible Tokens. We saw multi-million dollar sales of amazing NFTs like a (literally) gray pixel, a meme, PNG drawings of rocks, or photos of a young man in front of his PC. In NFT you can also buy properties in a parallel world in the metaverse.

But well, this big bubble seems to be starting to deflate. NFT sales have plummeted on OpenSea, which is the main platform for buying and selling these assets. Bloomberg has published a report by Nansen stating that in the last month OpenSea sales have fallen by 67%. Overall 30-day NFT sales are down 40% from the previous month, according to Nansen.

Nansen has analyzed 8,400 collections with a total of 19.3 million NFTs. And his conclusions are based on this figure, which indicates that one in three NFTs is worth nothing today. “On average, one in three NFT charges has expired, with little or no trading activity,” are the words of the study. What’s more, another third is trading below the amount it cost issuers to mint the tokens.

According to data from the Nansen report, the number of buyers of NFTs peaked in February. The conclusion from him is that although the general public is no longer interested in the vast majority of NFT collections.

“Money Flows Senselessly”

WhaleShark which is one of the great “tycoons” of the NFT sector because he has many of these assets in his possessionhas said that “money flows too fast and senseless”.

Even one of the most recognized collections for its great value and popularity, Bored Ape, has dropped 67%. Others like CryptoPunks and Cyberbrokers have fallen sharply: 59% and 42% respectively. The top 30 NFT projectsonly Azuki has been profitable in the last month.

You mistakenly sell a million dollar NFT, and you're left with only a penny.  no return possible

In addition to these falls, this sector is experiencing many problems. For example plagiarism. OpenSea has already had to take action although many artists continue to complain about how their works are being stolen without permission. The digital market had to ban two collections from its website: PHAYC and Phunky Ape Yacht Club (or PAYC) because they are both shown as nearly identical versions to the avatars of the Bored Ape Yacht Club.

Challenges that NFT has not been able to face

There was a time during 2021 when it seemed that** NFTs would be a great complement for artists** to get their work out to the public. But over time it has become a problem for many artists.

AI could be the solution to avoid NFTs that plagiarize works of artists: a Twitter account is locating them for now

Another serious problem that for now has no solution is speculation without control, which sometimes ends up being a scam. According to a report published by blockchain data firm Chainalysis, the NFT market is riddled with people buying their own Non-Fungible Tokens or NFTs to get their prices up.

to this practice They call it “wash trading”: buying and selling a security in order to cheat the market, something that was done in the past on the Wall Street stock market and has been illegal for decades. The fact that the NFT market is still unregulated can lead to many types of scams. This “wash trading” has also presented a problem for the cryptocurrency market.



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