At a conference on NFTs last weekend, organizer Gary Vaynerchuk, serial entrepreneur and social media influencer, said about 97-98% of current projects will lose value by 2024. Vaynerchuk’s conference, called “VeeCon”, is all about digital real estate and how new technologies can interact with art, sports and entertainment. While the NFT market appears to be winding down, Vaynerchuk explained that current NFT issues are largely linked to a lack of training and communication about the technology.
Last weekend’s VeeCon conference was its first edition. It is an event “with icons from business, sports, music, art, Web3 and popular culture”. Vaynerchuk said the goal is to build lasting relationships, share ideas and connect with society. In addition to being a serial entrepreneur and influencer on social media, Vaynerchuk is also known for his early investments in companies including Facebook and Coinbase. Event tickets were sold as NFTs.
As a reminder, NFTs (non-fungible tokens) are a type of digital asset created to track ownership of a virtual object using blockchain technology. These unique items could be works of art or sports exchange cards. In the first half of 2021, the market experienced exponential growth with record highs. Total NFT sales in the first half of 2021 were approximately $ 2.5 billion compared to only $ 13.7 million in the first half of 2020. However, after this period of strong growth, the market has not stopped collapsing since the second half of 2021
In fact, since this recent rise in growth, the NFT market has seen wild fluctuations in the price people are willing to pay for digital assets. Ami Barzelay, product manager for Crinkle, a shopping rewards optimization, described owning NFT as “digital bragging rights”. An NFT, which can be a picture, a song or a video, can be copied and enjoyed by anyone in the world, but it can have only one owner. He added that for fun he paid $ 100 for a Tiger Woods music video, which he then sold for $ 5,000.
Reports have revealed that there is an inherent skepticism and fear in buying and selling things that do not exist in the physical world. The Vaynerchuk Conference aimed to combat this. During a media lunch on Thursday, Vaynerchuk said it would take education, communication and time to get people more familiar with the idea of NFTs and blockchain. “Many of us remember that we, or especially our parents, were incredibly scared and uncomfortable using a credit card for an online purchase,” he told reporters.
And if the first problems of fraud and theft arose, protective measures were eventually introduced. This will soon be the case for blockchain. Education and communication solve everything, he says and predicts that in 20 years this is how all property sales will be registered. NFTs are really fun to collect, but they are a small part of the consumer blockchain. “We will all end up interacting with NFTs because they will be our airline tickets, our receipts, our US Bank Stadium tickets, etc., they will be our membership card,” Vaynerchuk said.
right now we use plastic or QR codes or email confirmations for a lot of things that I think blockchain will absorb because it’s a better technology for these things. It will just take some time, he added. Still, there is some fear about the longevity of the room. Bitcoin hit its lowest level since December 2020 at the beginning of last week, below $ 26,000, and the shares of the listed cryptocurrency brokerage firm Coinbase have fallen as much as 74% since the beginning of the month, the year this week.
The ether price has recently fallen 60% from the top in 2021. Other cryptocurrencies like UST stablecoin, Luna cryptocurrency have also fallen. Stablegains, an application for generating returns through decentralized financing, announced on May 21 on its blog that it is stopping offering services to its customers and inviting its users to withdraw their money from the platform. Stablegains was forced to close after suffering a notable loss of about $ 40 million after the collapse of the cryptocurrency and NFT markets.
Bought 2.9 million, NFT for the first tweet in history, co-founder Jack Dorsey, was only worth $ 10,000 in March 2022. The buyer, Iranian cryptocurrency entrepreneur Sina Estavi, is now struggling to recreate digital assets. In March, the highest bid for Dorsey’s premier NFT was $ 9,968. According to analysts, this shows that the madness over these digital assets is disappearing. Estavi explained that he will not sell his NFT for less than $ 50 million. But the question that analysts are asking is: what interest do people have today in buying this NFT?
At this point, the crushing energy of the room is very short-term. I would say it’s greed. Many do not spend their time on education. The reality is that all this behavior will cause 97-98% of current projects to lose value over the next 24-36 months because the supply and demand curves will not work, “said Vaynerchuk. He is not the first, back in June, Coinbase co-founder Fred Ehrsam had already said that about 90% of NFTs would be worthless in 3-5 years.
Ehrsam had drawn parallels between the advent of cryptocurrencies and the dotcom boom of the 1990s. I would go so far as to say that 90% of NFTs produced are likely to be of little or no value in three to five years. The same could be said of the early Internet companies of the late 1990s, he said. To him, NFTs are no different than any other cryptocurrency project. He said these projects are often born out of craziness from one day to the next. According to him, people will try all sorts of things, but eventually the market will completely collapse.
Many have said they hope the crash marks the end of the concept’s relentless media coverage. Despite the overwhelming evidence that all this was a hoax at best and an impending environmental disaster at worst, many people were too lured by the promise of something new / money, and in a brief moment hundreds of millions of dollars flew around in the world in exchange for videos that people did not have. But that golden age is now over, said one critic.
What is your opinion on the subject?
NFT sales volume hit $ 2.5 billion in the first half of 2021, when the market returned after the crash in May
Stablegains accused of misleading its customers, after notice of closure we stop offering the Stablegains service, please withdraw the remaining funds
Bought for $ 2.9 million, NFT is only worth $ 10,000 from the first tweet in history, showing that the craze for these digital assets is disappearing