I saw this on Tiktok when I was scrolling this morning, and I got somehow alarmed since I know a lot of people who invested in NFTs. Even my cousins dedicated a huge chunk of their savings to buy their own NFT so I got worried when they said that almost 90% of NFTs are now worthless. What do you guys think of this? Would it be possible to recover?
At one point, I also had high hopes for NFTs. I wanted to buy one in the past, but I just didn’t have enough money to do so.
I also invested in some NFT, luckily nothing too expensive.
The problem with the NFT space is that it’s to easy for anyone on the street to release a collection, which is exactly what happened. Everyone saw that Yuga made a ton of money, so every kid and scam artist in the world saw an easy route for some quick cash. The scammers just released collections and promised utility and big returns, then pocket the money and disappear. The kids think they can build someone big and cool and release a collection then suddenly realise they have no business experience and have no idea what they’re doing, so like the scammers they take the money and disappear.
Then there is the actual bluechip NFT companies/collections, like DeGods, BAYC etc. They’re actually building and fulfilling utility promises etc, but unfortunately the prices have tanked due to the market being over saturated by the scammer and kids collections. As many people have been burnt by the scams they lose interest and leave the NFT space. I have bought into 3 collections that have been total scams and now I’m stuck with some worthless JPEGS. I’ve also bought into other collections that have been great and I’ve made a little money flipping the JPEGS.
Saying that, I do think there is a future for NFT as the tech moves forward and the customer base get more savvy hopefully it’ll help battle the scammers. It’s also highly correlated with the crypto market, which is down bad at the moment.
I suppose the rules are the same for any kind of trading, do your research and due diligence before parting with any money.
So sorry to hear this, Pauley! And thank you for sharing this even though it might have been a bit of a sensitive topic (especially for a lot of traders who don’t want to talk about buying into scams or sumth).
I definitely agree with what you said about a lot of inexperienced people creating their own NFTs and just taking the money before disappearing. Are you holding on to your NFTs, hoping they will regain their value in the future? If you don’t mind, what do you plan to do with them moving forward?
I currently only have 25 NFT in my collection. I’m planning on keeping a few, such as the one I use for my pfp here on BabyPips and all the others are currently for sale on Opensea. I’m not too precious about if I sell them or not as when I bought them I used the investing rule ‘don’t invest what you can’t afford to lose’.
If I do sell them I think I’m going to move the funds over to my stock portfolio and buy some more shares.
Oh wow. That’s a lot of NFTs. But it’s great that the low prices today don’t affect you as much as it affects some people. My cousin invested a part of his savings into NFTs so he got hit a bit harder by the recent decline in prices.
Oh man. Have you asked them about it recently?
I tried creating digital art in 2020 to turn into NFTs and then realized how much minting fees are lol. I made a tiny bit of money flipping 2 cryptokitties back in 2017 and that’s about my NFT experience.
As with all things, I think there’s def a good chance for a crypto comeback and that means NFTs too. Who knows when though…
following is a picture of a monkey (nft) that sells on ebay for $99.00
what makes a picture of a monkey worth $99?
you can buy it if you want to, just like you can buy an oil painting of a monkey, its the same thing.
basically, nft’s are a scam and a hoax.
Many cryptocurrencies are down 90+% since their peak in late 2021. So this is completely possible. Recover for most existing NFTs won’t be possible. The hype is over. If and when it comes back, it will be for the shiny new thing.
Yeah, agree. It’s been a rollercoaster ride in the crypto and NFT world. It’ll be interesting to see what the next “shiny new thing” is.
It was clear from the start that NFT is a yet another way to scam people smartly. The key issue with NFT is very controversial argument what makes their intrinsic value so high - so called “certificate of authenticity”, i.e. record in blockchain. While it does prove that some digital art belongs to you, NOBODY CARES that you are the real owner of some digital picture or video and can confirm it. However without it it’s just a digital picture which can be easily copied and which you can find tons in the internet.
Tbh, we barely talk about it nowadays. I can imagine it’s a sensitive topic for them too so I make it a point to not bring it up.
There are definitely a few mixed in there that are scams But I feel like there are still ones that are legit (and they’re probably the ones that remain to have value to this day.)
Yeah. That makes sense. What do you think should’ve been done in the past so that NFTs didn’t end up like this?
Maybe something AI? HAHAHA
Definitely makes sense. It was also a bit confusing to understand how NFTs gained such high values even though everyone just wanted to make and launch their own.
I think you’re missing the point of the technology. You don’t care that someone owns a piece of digital art, but many other people do care. But this is just the start of the technology and for me the digital art is just the tip of the iceberg and more testing the waters rather than the only thing blockchains will be used for. While the art isn’t for anyone, all the things that are being tested in the background is what’s important, such as the blockchain capabilities and importantly the security. I firmly believe that a lot of our securities will slowly be moved over to the blockchain, from currencies, legal contracts, ownership documents for every day things such as cars, property etc etc.
My Dad remembers in the 1960/70’s when credit cards were introduced, a technology back in those days which seemed as outrageous as what blockchains seem to some people, like yourself today. Everyone was sceptical about credit cards and said it would never replace money in your pocket, they were wrong and now its the norm. In fact I never carry money, only my credit cards, and some of those are digital on my phone.
I remember back in 2009 and the invention and release of BTC the first digital currency, I didn’t buy into it, and didn’t invest into it. Now the egg is on my face. If I invested just £100 in BTC in 2009 and left it in my digital wallet, I would today have over £2.5 billion.
I think these technologies need to be looked at in the bigger picture. Yes, to you at the moment NFT are worthless and pointless. But in 10 years time, perhaps those worthless pictures may be seen as hugely valuable and collectable items as they have been used to pioneer a new technology.
True. I mean I’ve lost a chunk of money on crypto too lol but happy to discuss I guess.
Yeah. The future holds a lot of possibilities when it comes to AI developments.
Hopefully there’s still a way forward for these NFTs, but with a system that’s more established so they don’t have to lose their value very quickly. I’ve shared an article about EVTs which are supposedly what’s next for NFTs but there haven’t been a lot of updates re those either.