NFT | Technology
There is A Reckoning in The NFT Market
Everyone now knows NFTs are worthless
People aren’t stupid.
NFTs or non-fungible tokens are by definition impossible to replicate.
But you can take a screenshot of an NFT.
In fact, unlike every other good or service ever created in our entire history, NFTs are the most fungible or easily replicated.
You can replicate an oil painting or create a counterfeit of a Chanel bag, but you would need a certain level of skill and hard work to do so.
Anyone can press Shift-Command-3 on a Mac to use a Bored Ape Yacht Club NFT or any one of the dozens of copycat artists creating digital ape NFTs like Dario De Siena or Zally on OpenSea.
The NFT by Yuga Labs pictured above sold for $24.4 Million at Sotheby’s!
There is nothing “non-fungible” about NFTs
Even Elon Musk mocked NFTs when he used a Bored Ape montage picture as his profile image and tweeted the below message.
A screenshot of an NFT is literally worthless.
How confusing since it is exactly like its original.
Prince Charles paid £50 million for a fake Monet!
The counterfeit luxury goods market of Chanel, Gucci, Tom Ford, and others is estimated at around US$4.5 Trillion a year!
Google searches for NFTs have plummeted
If you’re confused, you’re not the only one.
Hundreds of thousands of people have fallen for this disappearing trend!
Since January 2022, Google searches for NFTs show that people have lost interest in the hyped-up NFT art market.
The market for NFTs has dropped off a cliff
Non Fungible, an NFT marketplace tracker, has released a report on the NFT market showing transactions of all NFTs.
Stephen Moore wrote a great analysis of the collapse of the NFT marketplace. Here are the highlights from the NFT marketplace report:
- Drop of 46% in the number of NFT sales in Q1 of 2022.
- Total decline of 92% from the peak of NFT sales in September 2021.
- 30% drop in NFT buyers.
- 50% increase (not a positive) in total losses of resells!
This last figure shows that NFTs are not by any measurement a store of value.
The technology behind NFTs is interesting
Artists can keep royalties on their creations from resales of NFTs.
Using QR codes, for example, will allow people to scan a table, couch, or any type of good to sell to a new customer (second hand).
This means that NFT technology would be able to give a percentage of the new sale back to its original owner or company.
But nobody is doing this yet.
It’s important because, in the near future, we can attach the production information to the QR codes as well.
People will be able to see the quality of the furniture or good they buy and know it's been built with environmentally conscious practices. This by default, encourages best practices for manufacturing goods at scale.
People are making ridiculous bets on NFT markets
NFTs are not just worthless, but they currently sit on the Ethereum blockchain, which is highly reliant on the brilliance of 28-year-old coder Vitalik Buterin.
Alex Masmej is a 23-year-old who was given US$7.6 Million in April 2021 to create an NFT gallery.
Alex was broke and jobless in 2020. So he tokenized his life choices for US$20,092 to 30 investors. Each investor got to decide what Alex would have to do with his life decisions over a given year.
Now investors are backing Alex as co-founder and CEO of Showtime.
Good luck to investors who will most likely never see a real return.
It’s a fun website to scroll through for about 7 minutes.
NFTs are the most gimmicky creation in human history
Capitalism is broken if we’re giving “smart” people the reigns to invest millions of dollars in setting up NFT galleries by young adults that have given strangers the ability to take control of their life choices! This is not an intelligent choice for a CEO or co-founder by any notion.
You can’t trade NFTs for a carton of eggs.
Try going to a flea market and negotiating an NFT for anything!
Picasso traded his masterpieces for food and drink.
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