As NFTs became all the rage in 2021, nearly passing the term Bitcoin in Google searches, several people took the opportunity to sell images at exorbitant prices.
One of the most famous cases was the NFT of the first tweet. The NFT is actually a screenshot of a message from Jack Dorsey, founder of Twitter, from March 2006.
“just set up my twttr”wrote Dorsey.
Despite the simplicity of the NFT, investors believed that by purchasing it, they would acquire a piece of Internet history. Bidding went through the roof, with Justin Sun offering $500,000 (R$2.8 million) for the screenshot.
However, the best offer was US$2.9 million (R$13.9 million) and another investor took such an NFT into his portfolio in March 2021. So far the investment is not going well.
The best bid for the NFT from the first tweet is $1.14 and critics are mocking investors
Just over two years after the NFT of the first tweet sold for $2.9 million, the best offer is just $1.14 (1 dollar and 14 cents!)that is, a devaluation of almost 100%.
NFT’s underperformance in the market has clearly attracted critics. Nassim Talebauthor of the books Antifragile and The Logic of the Black Swan, was the first to speak out on social media.
“A sign of mental deficiency is “investing” in NFT. The problem is that it was clear two years ago.”
A sign of mental deficiency is “investing” in NFT. The problem is that it was obvious 2 years ago.
h/t@mpawlo https://t.co/aB0ylIVDko
— Nassim Nicholas Taleb (@nntaleb) July 19, 2023
Another commenter on the situation was John Reed Stark. While not as crass as Taleb, the former SEC executive posted a text to criticize the NFT market.
“The NFT market is fully rigged. Market manipulation of NFTs is not only widespread and tolerated, but encouraged. Fraud is not only rewarded, it also teaches.”
“Whether the NFT bubble bursts is a rhetorical question”continued John Stark. “The drop comes even as countless celebrities blatantly exploit their own fans, blatantly displaying these meaningless fractional JPEG links as a prudent path to financial success.”
The NFT Emperor has no clothes.
Therefore, it’s not at all surprising that an NFT of Jack Dorsey’s first Tweet is now essentially worthless.
A fractional link to a JPEG of a “bored monkey” with funny glasses and a colorful hat is not a good investment, wise means to… pic.twitter.com/GaYNklKdV4
— John ReedStark (@JohnReedStark) July 20, 2023
Finally, Stark noted that people are free to buy NFTs to display them as avatars on social networks, but pointed out that people shouldn’t buy them for financial returns. “Stay away from NFTs, they are a scam”he concluded.
Finally, this is not an isolated case. For example, singer Justin Bieber paid BRL 6.9 million for a monkey NFT in January 2022, but today such a JPEG is valued at only BRL 300,000.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.