The vast majority of NFTs are now worthless, new report shows
The vast majority of NFTs are now worthless, new report shows
Two years after tech trend that swept up artists and celebrities, researchers estimate 23 million people hold worthless investments
Gee, if only there was some way to have seen this coming before hand...
Actually I didn't have many hopes in humanity when it started to happen. It's a bit comforting, not much though with other things around.
🌍👨🚀🔫👨🚀
Were they worth anything to begin with?
A better question would be, did anyone ever even buy them to begin with?
This means that 79% of all NFT collections – otherwise known as almost 4 out of every 5 – have remained unsold.
That is, most of the NFTs included in the OP statistic were listed for sale by their creators, and never recorded a sale. Another important detail is that even for the ones that did record sales, there's no real way of knowing if those sales were real. You can easily make another crypto wallet and buy an NFT from yourself. For more elaborate wash trading, you can find someone with an established wallet to collude with. There are obvious reasons to do this too; building up a history of increasing sale prices could potentially dupe someone into thinking an NFT is a good investment, or you could launder money by selling an NFT to a 'dirty' wallet you also control.
Probably some portion of the market was "real", but the volume is almost certainly much lower than anyone is reporting. Statistics like what the OP article is quoting are just about totally meaningless.
no
Just because something is unique doesn’t mean it’s valuable.
Some people are just discovering this.
It's not even that it's unique. It's just one particular system associates you with something. It's basically those star registry scams. Except you're not associated with a star by one particular scam organization. You associated with an image of a cartoon ape by a scam organization! But there's a trendy technology involved so idiots think that makes it somehow legit.
6444&'"_@@¶&5tyj7tfsdyoohoof
Behold my one of a kind unique string of characters. Me I own this tangible property. But lo! For only 0.42069lol "BTC-lts33" (a REAL and stable currency that is NOT speculative AT ALL) I will maintain a CSV on my server (
192.168.6.9/wp-admin/test/test2/myPage.php) I will serve you a guaranteed locally unique identifier (starting at "3" (I'm holding on to the other two strings for a rainy day)) that points to the row with this string, so you can show off that YOU are the sole owner of this totally unique investment property.This server is guaranteed up, with 100.00000% uptime since this morning
Try telling that to sports memorabilia collectors though.
"Look at my hockey jersey!" "Yeah, so? I have the same one." "Yeah but you're wasn't signed by Wayne Gretsky."
Or even trading cards, or comics. Or hell, even plain w-shirts with a brand logo on it for $250. People assign arbitrary values to stuff all the time. I don't understand it at all, but there's a whole ton of people that just eat that shit up like it's candy.
That arises at least somewhat more organically around a real interest that millions of people have been enjoying and obsessing over for generations. So it's not fair to say it's totally arbitrary.
The logo stuff is weird though. That's definitely more "Veblen" like the high price point is itself a flex and desire for, if not true luxury, then the appearance of opulence.
Each one of my shits is unique, but just as valuable as an NFT
It can have real value if you use it to fertilize a square meter of dirt and plant corn on it. Shit + water + seeds = food.
🔫️ Always have been
They were always worthless
Not to the people targeting the suckers out there…
And they still are!
NFTs were the perfect technology to identify people who didn't understand crypto. The only reason Bitcoin et al. even almost work is that nearly anything can be a medium of exchange... so long as it's fungible. Which is the F theses Ts are N.
But if all you saw was numbers going up, and you don't know what a Ponzi scheme is, yeah sure it makes total sense to buy a genuine commemorative plate of the Brooklyn Bridge. Why's everyone on your case? It must be worth money! It's (a receipt for a link to a picture of) the Brooklyn Bridge!
Fanbros compare stocks, but stocks are slices of a real company. You control one-zillionth of an actual business. If you own enough, that company will do what you say, because you are literally their boss. No amount of "authentic" Brooklyn Bridge tokens will ever mean you get the bridge.
Everything signifying that the exchange was worth your money is a fiction created by the people who took it. That's how scams work.
The value of tokens on the Blockchain are ostensibly related to the value of the apps that stake/work supports. NFTs were just another attempt at creating some real app/service value which didn't have all the difficulty or intrinsic value problems that being a payment processor does.
The core problem is the same though. Speculative value of the tokens can't really exceed the actual intrinsic value of the underlying Blockchain apps. For such apps to actually work as intended, more thought needs to go into anti-speculation mechanisms.
NFTs were a drunken hackathon project that got wildly out of hand. They don't even do the one thing they intended - storing tiny images. They had to settle for links.
Payment processing has literally nothing to do with NFTs.
Y'know how Inglorious Basterds spends ages humanizing individual Nazi soldiers? You get whole-ass backstories for some of them. Meanwhile the allied hit squad and resistance saboteurs are brutal, merciless, dishonest, petty, and sometimes just plain dumb. It's like making a whole movie about the casual war crimes at the beginning of Saving Private Ryan. By giving audiences every possible opportunity to empathize with these enemy forces, Tarantino was asking if there was any point where they'd feel bad about about killing Nazis, and the answer is a pretty resounding "no."
NFTs are like that for scams. Every possible excuse for taking them seriously has been stripped away, and some people simply do not care. You don't get anything. You don't really control it. It has no intrinsic function, purpose, or value, beyond what you already had before paying for it. It's a receipt for a link to a thing that does not matter in the first place. But you slap words like "genuine" and "decentralized" on there, and it breaks people's brains.
There really is an "official" NFT of the Brooklyn Bridge. Which means nothing. There's no relation. It's technically not the classic bridge-selling scam inasmuch as nobody's selling you the bridge, but they are absolutely taking your money in exchange for fuck-all.
Awesomely described - you have a way with words... mindbleach.
If value is completely dependent on speculation how the fuck do people expect to make money?
Crypto Booms: "This is the future of money. You can't lose."
Crypto Busts: "I'm just interested in the tech it's not about money."That is some high grade cope. Highly refined. 99.99% pure cope.
Those are two different communities that are interested in crypto. Some of the crypto bros used the pro-decentralized peoples logic to cope… but there are both.
I’m surprised there aren’t more of the decentralized endorsers here, amongst a community of technically literate people using FOSS software.
Greater fools.
Of no surprise to anyone.
To be real, even cryptobros would tell you the vast majority were useless as soon as they were minted.
It's why they pushed them so hard. They hoped we were stupid enough to buy into it and make them richer.
Perhaps they’d have retained value if they had been attached to quality art rather than awful-looking algorithmically generated complete trash.
No, they wouldn't have. Because owning a link to a thing doesn't mean anything, no matter what that thing is. They were only valuable because people didn't understand NFTs and wanted to get rich quick.
Wait. They were actually worth something!?
Who would have thought?
and nothing of value was lost
Well a lot of money transferred to grifters that's for sure.
They always were.
Now?
O rly! 🦉
I can imagine being desperate to hit it big, but at least but a lottery ticket or something. That way, the school system (or whatever) gets a few bucks, instead of the fucking Trumps.
This is the best summary I could come up with:
Tens of thousands of NFTs that were once deemed the newest rage in tech and dragged in celebrities, artists and even Melania Trump have now been declared virtually worthless.
NFTs, or non-fungible tokens, are a form of crypto asset that is used to certify ownership and authenticity of a digital file including an image, video or text.
The report comes nearly two years after the craze for NFTs swept up celebrities and artists alike, with many rushing to purchase NFT collections of the Bored Ape Yacht Club and Matrix avatars.
The drastic downward market shift surrounding such crypto assets “underscores the need for careful due diligence before making any purchases, especially one of high value”, the report said.
Researchers identified 195,699 NFT collections with no apparent owners or market share and found that the energy required to mint the NFTs was comparable to 27,789,258 kWh, resulting in an emission of approximately 16,243 metric tons of CO2.
In order to survive market downturns and have lasting value, NFTs need to be either historically relevant such as first-edition Pokémon cards, true art or provide genuine utility, they said in the report.
The original article contains 650 words, the summary contains 189 words. Saved 71%. I'm a bot and I'm open source!
I hope someone got paid a lot of money for this ground breaking report.
Cryptobois be like
Given that they can be generated effectively for free, this is hardly surprising or particularly meaningful. I can generate ten thousand new images with my AI art generator for basically zero cost and I don't expect any would be economically valuable, but that doesn't mean there aren't some images that are valuable.
69,795 out of 73,257 NFT collections have a market cap of 0 Ether
LMAO!
It must have been really hard for the underpaid researcher to put this report together while doubling over in laughter.
Not Fart Token
NFTs will fix future financial fraud by utilizing blockchain tech to keep public trades accountable. True audits
Doesn't have to be a JPG
Not sure I’d say ‘will’ because the people who have to implement it are the same people that benefit from the current system.
I'm not against this. And as far as I can tell it isn't a get rich scheme. I mean the tech companies implementing and maintaining it would probably make a killing, but that goes for any enterprise that supports big finance.
NFTs, like crypto in general, is nothing more than a ponzi scheme.
Only it's worse because there is no one to go after when it collapses. As you can see with the NFT collapse... there is no "Madoff" you can identify to send to prison.
NFT's never made much sense to me, at least in the way people attempted to use them.
Maybe they'd be useful as additional proof of ownership of a physical object? Like if they issued one when you bought a car, and you could use it as proof of ownership if you lost your title. That's probably a bad example as I imagine there's already safeguards in place for this in most places. And probably some other issues that haven't occurred to me. Still, conceptually I think it makes sense.
NFTs are stupid AF for most of the tasks people currently use them for and definitely shouldn't be used as proof of ownership of physical assets.
However, I think NFTs make a lot of sense as proof of ownership of purely digital assets, especially those which are scarce.
For example, there are several projects for domain name resolution based on NFT ownership (e.g you look up crypto.eth, your browser checks that the site is signed by the owner of the crypto.eth NFT, then you are connected to the site), as it could replace our current system, which has literally 7 guys that hold a private key that is the backbone of the DNS system and a bunch of registrars you have to go through to get a domain. This won't happen anytime soon but it is an interesting concept.
Then I think an NFT would also be good as a decentralized alternative to something like Google sign in, where you sign up for something with the NFT and sign in by proving your ownership of it.
In general though I find NFTs to be a precarious concept. I mean the experience I've had with crypto is you literally have a seed phrase for your wallet, and if it gets stolen all your funds are drained. And then for an NFT, if you click on the wrong smart contract, all your monkeys could be gone in an instant. There is in general no legal recourse to reverse crypto transactions, and I think that is frankly the biggest issue with the technology as it stands today.
No they're shit at that too.
Proof of ownership is this big complicated thing with lots of safeguards. If someone steals your title, you still own your car, and you can get this fixed.
If someone steals your nft, it's gone. The entire point of the Blockchain is there's no central authority that you can appeal to who will do the work to check that transactions are legitimate.
Anything that happened stays happened, unless the entire community explicitly roles back the Blockchain.
That's their intended purpose, but idiots made a bunch of images and sold them for stupid amounts of money to other idiots and that's the ONLY aspect 99.99% of humanity will ever know about it because the media went full fucking bore to convince everyone, every day, every hour, that that's all they are.
Ehhh. The ones that were always worthless are now actually valued. The ones with some purpose for existing, I assume not as much (see: none that are just simple files).
How to say, "I'm a rube," without saying it out loud. Not a tear will be shed for these doofs.
