It does seem like some weak legs to stand on. They do at least seem to have some self-awareness when they say: I think we can safely put the entire NFT market at $0. It existed to trick people...
It does seem like some weak legs to stand on. They do at least seem to have some self-awareness when they say:
Even among the more expensive NFTs, the report notes, such prices may be set “without any bearing on tangible, real demand,” reflecting wishful thinking from sellers and potentially distorting investors’ view of an NFT’s meager inherent value.
I think we can safely put the entire NFT market at $0. It existed to trick people into giving people with lots of Crypto a way to offload their Crypto and make actual money. Now that that option is dead, I imagine it won't be long until we hear an amazing new way the blockchain will solve all our issues.
Not sure we can write off NFTs yet. Compressed NFT usages is still near the highs on Solana (mostly lead by Dialect users), according to this article that came out yesterday:...
The difference is that Grandma is no longer asking if she should do the "nft thing". It's lost it's public appeal and that's good enough. If people want to buy and sell nfts, that's fine. The...
The difference is that Grandma is no longer asking if she should do the "nft thing". It's lost it's public appeal and that's good enough. If people want to buy and sell nfts, that's fine. The problem was the insane pricing and frenzy over the whole thing.
Yeah people do seem to enjoy collecting stuff, and in a world where stuff is increasingly digital it seems to make sense as a kind of generic substrate for interoperability that doesn't rely on a...
Yeah people do seem to enjoy collecting stuff, and in a world where stuff is increasingly digital it seems to make sense as a kind of generic substrate for interoperability that doesn't rely on a centralized source to maintain the ledger.
Most use cases are kind of pointless was the challenge. Everyone wanted this to be a get-rich quick scheme to make a ton of money and that led them to turning it into Beanie Babies. But it's really more like a challenge coin you can have. If a service wants to be able to give people perks based on whether they can produce a specific coin there's uses for that. They're not gonna make anyone rich, just a nice to have technical feature that can enable a common framework for keeping track of entitlements without needing to do a bunch of data sharing and negotiations between different services and accounts.
For example, I could do an esports thing. Suppose you're a big fan of some FGC player and you buy an NFT they mint. This can basically work as a season pass that you can have to subscribe to their stuff across games and developers. And as long as everyone is using the same standard framework for recognizing the NFT, nobody has to fuss too much about maintaining a list of accounts and entitlements. That's legitimately convenient, just a very narrow use case. To actually be useful the NFTs themselves shouldn't have any value. Any value they have should be tied to the basket of entitlements they get you. It's highest value is for use cases that aren't all that valuable. If they were valuable you could count on some centralized broker to maintain the ledger and an ecosystem to exist around it to maintain trust. But if it's kind of small-time and probably not profitable for a business to really keep track of then NFTs that decentralize the contracts and keeping track of stuff do it better.
Even hacktoberfest is doing digital rewards now, instead of t-shirts. But these rewards aren't NFTs, so it's hard for me to figure who has control over them or where these rewards actually live:...
Even hacktoberfest is doing digital rewards now, instead of t-shirts. But these rewards aren't NFTs, so it's hard for me to figure who has control over them or where these rewards actually live: https://hacktoberfest.com/about/#digital-rewards
I play a mobile game that has NFTs like that. I’m not interested in NFTs or Crypto in the least, but the items function as exclusive skins and give a monthly subscription/benefits in game. A few...
I play a mobile game that has NFTs like that. I’m not interested in NFTs or Crypto in the least, but the items function as exclusive skins and give a monthly subscription/benefits in game. A few of those stack with multiple. That said, I was lucky and an active user, so I have 4 and only put about $20 into that.
I'm not surprised people are still trying to scam other people with NFTs. That doesn't mean anyone besides crypto Bros should care. Sure, could NFTs be used for things like concert tickets. I...
I'm not surprised people are still trying to scam other people with NFTs. That doesn't mean anyone besides crypto Bros should care.
Sure, could NFTs be used for things like concert tickets. I guess. Outside of another pandemic though I don't see a reality where NFT value explodes again but people are pretty stupid so I guess anything is possible.
Miles Klee New report from industry researchers finds that 95 percent of the once-hyped crypto assets have hit rock-bottom valuation (tap/click to know more...) In practical terms, that means 95...
Miles Klee
New report from industry researchers finds that 95 percent of the once-hyped crypto assets have hit rock-bottom valuation
(tap/click to know more...)
A team of researchers have crunched the numbers to explain why you don’t see people hawking ugly cartoon apes on the internet as much anymore: NFTs, or non-fungible tokens, once vaunted as a revolution in crypto and digital art, are largely worthless.
“Dead NFTs: The Evolving Landscape of the NFT Market” is a new report from dappGambl, a community of experts in finance and blockchain technology. Upon analysis of 73,257 NFT collections, the authors found that 69,795 have a market cap of zero Ether (ETH), the second most-popular cryptocurrency behind Bitcoin.
In practical terms, that means 95 percent of NFTs wouldn’t fetch a penny today — a spectacular crash for assets that reached a trading volume of $17 billion amid a frenzied bull market in 2021. The study estimates that some 23 million investors own these tokens of no practical use or value.
Remain unsold
What’s more, supply vastly outstripped demand for NFTs. Just 21 percent of the collections included in the study can claim full ownership, meaning around four out of every five collections remains unsold. With buyers becoming more discerning, the report notes, “projects that lack clear use cases, compelling narratives, or genuine artistic value are finding it increasingly difficult to attract attention and sales.”
Their worth today
And, while headlines during the heyday of NFT speculation focused on individual pieces that sold for the equivalent of millions of dollars in crypto, almost none are so exorbitantly priced today. Less than one percent are listed at more than $6,000, and the bulk of the most expensive collections are priced between $5 and $100. Almost a fifth of the “top” collections have a floor price of zero. Even among the more expensive NFTs, the report notes, such prices may be set “without any bearing on tangible, real demand,” reflecting wishful thinking from sellers and potentially distorting investors’ view of an NFT’s meager inherent value.
Assets may evolve
The dappGambl researchers conclude that while we may never see an NFT boom like the one in 2021-2022, the assets may evolve in a way to survive the wipeout. For example, they could be given a specific function, becoming a pass for special event access or a virtual item to be purchased and traded in video games.
Environmental impact
This, however, would not address perhaps the greatest drawback of NFTs, which became a major controversy as they peaked in popularity: their environmental impact. Non-fungible tokens are minted on the blockchain, a process that requires energy, and bought and sold in marketplaces that run on cryptocurrencies “mined” with computer rigs that have a significant carbon footprint. But minting tokens alone carries a cost. The “Dead NFTs” report observes that the nearly 200,000 NFT collections “with no apparent owners or market share” identified by the study caused carbon emissions equivalent to the annual output from 2,048 houses, or 3,531 cars.
Of course, enthusiasts didn’t worry too much about that when NFTs were a hot commodity. And if they ever make a modest comeback, climate concerns will likely be brushed aside again. Can’t let something like that get in the way of the next hype cycle.
It does seem like some weak legs to stand on. They do at least seem to have some self-awareness when they say:
I think we can safely put the entire NFT market at $0. It existed to trick people into giving people with lots of Crypto a way to offload their Crypto and make actual money. Now that that option is dead, I imagine it won't be long until we hear an amazing new way the blockchain will solve all our issues.
Not sure we can write off NFTs yet.
Compressed NFT usages is still near the highs on Solana (mostly lead by Dialect users), according to this article that came out yesterday:
https://www.bankless.com/solana-past-present-and-future
The difference is that Grandma is no longer asking if she should do the "nft thing". It's lost it's public appeal and that's good enough. If people want to buy and sell nfts, that's fine. The problem was the insane pricing and frenzy over the whole thing.
Yeah people do seem to enjoy collecting stuff, and in a world where stuff is increasingly digital it seems to make sense as a kind of generic substrate for interoperability that doesn't rely on a centralized source to maintain the ledger.
Most use cases are kind of pointless was the challenge. Everyone wanted this to be a get-rich quick scheme to make a ton of money and that led them to turning it into Beanie Babies. But it's really more like a challenge coin you can have. If a service wants to be able to give people perks based on whether they can produce a specific coin there's uses for that. They're not gonna make anyone rich, just a nice to have technical feature that can enable a common framework for keeping track of entitlements without needing to do a bunch of data sharing and negotiations between different services and accounts.
For example, I could do an esports thing. Suppose you're a big fan of some FGC player and you buy an NFT they mint. This can basically work as a season pass that you can have to subscribe to their stuff across games and developers. And as long as everyone is using the same standard framework for recognizing the NFT, nobody has to fuss too much about maintaining a list of accounts and entitlements. That's legitimately convenient, just a very narrow use case. To actually be useful the NFTs themselves shouldn't have any value. Any value they have should be tied to the basket of entitlements they get you. It's highest value is for use cases that aren't all that valuable. If they were valuable you could count on some centralized broker to maintain the ledger and an ecosystem to exist around it to maintain trust. But if it's kind of small-time and probably not profitable for a business to really keep track of then NFTs that decentralize the contracts and keeping track of stuff do it better.
Even hacktoberfest is doing digital rewards now, instead of t-shirts. But these rewards aren't NFTs, so it's hard for me to figure who has control over them or where these rewards actually live:
https://hacktoberfest.com/about/#digital-rewards
I play a mobile game that has NFTs like that. I’m not interested in NFTs or Crypto in the least, but the items function as exclusive skins and give a monthly subscription/benefits in game. A few of those stack with multiple. That said, I was lucky and an active user, so I have 4 and only put about $20 into that.
I'm not surprised people are still trying to scam other people with NFTs. That doesn't mean anyone besides crypto Bros should care.
Sure, could NFTs be used for things like concert tickets. I guess. Outside of another pandemic though I don't see a reality where NFT value explodes again but people are pretty stupid so I guess anything is possible.
https://archive.ph/6Cunh
Miles Klee
New report from industry researchers finds that 95 percent of the once-hyped crypto assets have hit rock-bottom valuation
(tap/click to know more...)
In practical terms, that means 95 percent of NFTs wouldn’t fetch a penny today — a spectacular crash for assets that reached a trading volume of $17 billion amid a frenzied bull market in 2021. The study estimates that some 23 million investors own these tokens of no practical use or value.
Remain unsold
Their worth today
Assets may evolve
Environmental impact
Link to the study referred in the article
uh-doi! I never understood why people fell for that scam
Same mechanics as most of these scams I think ("fear of missing out" and "it's the future").