Just like the Roman Empire, Sizzler Restaurants and Sara Maree’s Bum Dance it appears the halcyon days of the NFT are over with sales in the NFT art world having dropped 92% over the last six months. Leading NFT artists are scratching their heads, asking, “Who saw this coming?” (Hint: EVERYONE).
But before we get into the ‘how?’, let’s firstly go over the ‘what.’
Non-Fungible Tokens – proof of ownership certificate that proves you own the digital item, be it Twitter’s Jack Dorsey’s first tweet (which originally sold for $2.9 million. The buyer then tried to sell it last month and could only fetch 2.2 of the of the cryptocurrency ether, about $6600. Which a) Is not $2.9 million dollars and b) Is the equivalent of trying to buy a 2.9 million dollar house using Bunnings vouchers that add up to $6600) or this picture by Cryptopunk which sold for $6.63 million and looks like something you would knock up on your kids Magna Doodle and not be upset if as soon as you finished it your kid shook it upside down and started drawing something else immediately.
(Image from https://nftnow.com/features/most-expensive-nft-sales/ which I just screenshotted for free, can keep on my computer, FOR FREE, and didn’t pay $6.63 million dollars for).
So why is this pyramid scheme for gullible rich idiots failing? (besides it being exactly what I just described). Some believe with the world opening back up and people no longer stuck at their computers all day and night, they are looking for different, more fun ways, to spend and invest their money.
Another theory is that the community of people who were buying and selling NFTs were small, and once they either burnt or got burnt by other sellers the ability to resell became harder.
And while NFTs may be dead, they will always live on in the awkwardness of this interview where Paris Hilton explains to Jimmy Fallon what they are and how he could use them.