95% of NFTs are Worthless
Introduction
Yesterday I subscribed to around 30 crypto mailing lists to stay on top of what is going on. Great minds exist in this outstanding industry who share their knowledge for people to consume.
Before writing this post, I read 3 mailing lists that took me over 1 hour. I immersed myself in an ocean of information that I love to consume, digest, and hopefully use to my advantage.
One headline picks up my curiosity...
95% of NFTs are worthless
It is shocking to discover this statistic, but I don't believe entirely this statement. I agree the NFT space was in a huge hype with influencers at every corner pumping their own collection for a quick buck.
If you wanted to play a simple play-to-earn game, you needed to buy expensive NTFs. The aim was to farm a token, but most of those tokens dropped in value because they built no utilities around their economy!
It is like buying a static thing with no interaction. You have a hard time imagining where the value comes from if you cannot do anything with them.
In the case of a game, you need to buy an NFT to play. The value comes from interacting with your avatar because you can resell it to another player.
The 2021 hype in the market
It is not far away in the timeframe of human history! This year, every market was in the green with a lot of liquidity in the market. People spent an astonishing sum of money speculating on the trend of NFTs.
A moment of FOMO (fear of missing out) where people rushed like in the gold rush era. Wanted to buy a piece of land, collectibles, or powerful armor in a game for interacting in the metaverse.
Now the grim reality is the hype is gone, vanished in the wild jungle. Reality is in a different paradigm where the prices are much lower and fewer buyers in the market.
Can you imagine if you bought a nice collectible at $1000 that lost 95% of its value?
Not a cool feeling!
I believe is not the best investment you have made in your crypto journey.
Where is the market going?
In my mind, NFTs are here to stay without any doubt. The market just needs to find utility and make them more interactive with value built into them. Define a purpose why we need to get them for any type of activity.
The crypto market brings a lot of new buzzwords, and hype, but is very exciting to see the emergence of this technology. NFTs will grow like every technology that humans have invented in the world.
In the beginning, the use cases are simple but develop new ways as time advances.
Last word
It is an exciting technology that brings ownership in the era of Web3. Now we are at the bottom of this market that I believe will rebound with interesting things to do with them.
I am eager to try outstanding games in the market with good NFTs built into them. Maybe as well start collecting cool pieces of art, who knows!
Have an outstanding and beautiful day.
PS: I am not a financial planner, and always do you own research
Thank you for sharing your thoughts on the world of NFTs and the crypto market.
I agreed with you that some NFTs lacked real utility or interactivity which can lead to a drop in their value.
I believe as the technology matures, we are likely to see more meaningful use cases and increased interactivity, making them a valuable part of Web3.
Something I am happy about is the entry point for playing games that interact with NFTs is more reasonable. In the hype, it was just too costly just to try a simple game.
Have an outstanding day!
Thanks for coming out to say the truth and that is why I always feel reluctant to invest in any NFT
I've been rugged so many times. It is painful
Losing and lack of money brings something in one particular part of our brain. Many authors have written about this subject.
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@darkflame(3/15) tipped @chesatochi
Thank you for the information, I feel really down when the price of my pleasure tokens goes down, but I'm sure that one day the time that I hold will become grains of gold. I have to persist and write the best way for me
The NFT buzz was a new altcoin wave that hit around the same time that De-Fi became a buzz word so you had lots of people exploring projects that only had speculative use cases, like price go up, which it would until someone realized their trillion funjoeshibags were worth thousands and could just swap and take all the BTC value. Most NFTs similarly are a way to distribute 'maps' leading to 'art', but don't have any inherent value.