What's popping? The NFT Bubble!
BlueFingers
Posts: 904
The NFT bubble has popped according to this data-analysis article by Protos.com: The NFT market bubble has popped and we’ve got the charts to prove it
TLDR: NFT sales have fallen dramatically over the last four weeks, a near 90% collapse in sales, and about $9.2 million worth of NFTs were sold in the past week which is nearly half of the entire market. NFTs that seems to be piviting from "Art orientated" towards sports memorabilia (who would have thought?).
If you, like me, were wondering why you saw so many pushing NFTs on TV this week, now you know. I hope this is true, but as crypto's are notoriously volitaile, we may have to wait a bit longer to see if this will last. It does look promising though.
EDIT: More article regarding the collapse are being put on the web, for those who are interested:
The NFT Market Has Collapsed, Oh No.
NFTs Are Crashing and Who Could Have Seen This Coming Other Than Basically Anyone?
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Comments
Fascinating. Good news if true.
Yes! There were articles out there claiming the same thing since the beginning of April, but none with a decent analysis. That has changed, and also pro-NFT sites are acknowleding it though, of course, they see reasons to be optimistic. Guess what, me too!
I really do hope this is a clear message. But X for doubt that Daz will change its tune. I do hope so, we all make mistakes .
Awww...that's too bad.
As I am typically only a nice guy to humans I like, I can wholeheartedly state that I hope that all who invested and will invest in NFT will lose a big deal of their money.
That article is interesting and I don't think they're wrong about NFTs sticking around or rebounding. The caveat is that they will probably do so for the same reason they blew up, i.e. being boosted by people with a lot of money. Since this entire thing is only materially valuable insofar as people are willing to spend a lot of money on it, there can be an "NFT rebound" and subsequent sales/investment rush any time someone foots another multimillion dollar purchase. With diminishing returns probably, but still.
I expected this crash but I'm not optimistic that it can dislodge it if people with $69 million dollars to invest want it to be a thing. And if NFTs end up just part of the overall crypto background tapestry, it doesn't really cost companies like Daz anything to keep on it just in case it really does live up to the utopian promises.
Regulation is probably the only thing that would make a long term difference, but there is what I will diplomatically call lack of interest in regulating anything tech-based that actually makes money, at least in the U.S.
You have to take the source in to account though, it's a pretty pro-NFT site (weirdly they have nothing to do with art but are a finance site), that does write to what suits them best, example: they frame the fact that NFTs are bad of the enviroment as a belief.
I think NFTs will not nessecarily have an easy time coming back, but we'll have to see.
In terms of regulations, I think your right it won't be the U.S that will take the lead, as long as the dollar is the default currency of the world there is no economic reason to. However, I have read that countries with weaker currencies are worried about crypto's as it may replace their own currency in some aspects leaving them with less control over their economy. I understood China is worried about loss of control in the long term aswell. So regulations may come from other places and may lead a trend. Still that is all speculation for now.
Money was definitely, 100% not laundered.
Artists made oodles of money.
It's a new song!
Waitaminute! You mean the Emperor's new clothes aren't made with invisible thread??
Tech and finance have two special things going for them... not a lot of people understand how they work.
The world of finance though has regulations (albeit not as many as it used to or should) that more or less encourages most people to sorta play loosely by the rules...
Tech, well not so much... stuff that would never fly in real life, flourishes in the virtual world... Like the fact that you don't really own any of the stuff you buy... if you look into the EULA of most devices and even to some extent certain cars and machines (read about the great John Deere debacle).
If you bought a lamp or a drill and you weren't allowed to change the bulb yourself or the drill bits for the drill were proprietary, people would storm the castle... or more likely just not buy the things... But slap a USB port on the thing call it "sMart" and hook it up to the Internet of Things and the world's your oyster... hell, six months later you can brick the friggin' thing and there's really little as far as consequences (look up half the dead IOT crap from unsecure security cameras to a juice maker that had to be the most expensive joke/scam I've ever heard of)... the USB port is like a magical shield protecting you from liability because once you add it, the product requires you agree to a End User License Agreement, which realistically can (and often does) say anything the manufacturer feels beneficial to them... most people don't read the EULA, and even if they do, they still "Agree" because sending it back is too much trouble.
The same with apps... Wanna get around regulations or regional rules? Make it an app!... Wanna make a few bucks off of dopes who don't understand how stuff works?... make it an app... Wanna displace an existing service or product while offering a far lesser substitute... make it a friggin' app!...
And on top of all that monetize the customer by collecting their data hand over fist!!
Once you link something to the magical world of tech, you can get away with anything... imagine if you tried putting a microphone in a doll that recorded children's conversations and shared the data with company that shared that data with a defense contractor who used it to help "fine tune voice controlled devices", you'd get your ass handed to you and... oh wait, that happened and nothing happened other than the doll was bricked in some countries (Germany banned the doll and ordered people to destroy it because it violated "spying" laws) and the company promised not to do it again... pinky promise, swear on my pet hamster's grave, will never do it again...
Why?... it had a USB port.
Magic.
None of that is going away any time soon.
And I'm afraid Crypto and NFTs are not going away any time soon either.
Why?
Because it's a magical, mystical, mysterious coupling of tech and finance.
People will milk this as long as possible and beyond... as long as there are cryptobros out there wielding acronyms like "NPoS", "RSI" and "TLT" or words like "fiat on-ramp" or "dead cat bounce" there will be people out there who will stare in wide wonder like Phillip J. Fry with a fistful of wing wangs and shout, "shut up and take my money!!!"...
Because of FOMO (Fear Of Missing Out) nobody, wants anyone to ELI5 (Explain Like I'm 5) the actual workings of any of this, or DYOR (Do Your Own Research) or look like a FUDster (someone who spreads Fear, Uncertainty and Doubt because they don't have faith)... they just want to believe there is a magical money machine out there they don't currently have access to and if they follow along with the suggestions and guidance of a bunch of folks who "just wanna help them make money too" (because that's a thing), they'll get their slice of the pie... only that pie is not the pie they are being sold, they are getting a getting a picture of pie with no cash value...
Just look at Muti Level Marketing... that sh*t shoulda died a undignified death years ago, but it's still there... still making the folks at the top of the pyramid a bazillion bucks while the mooks at the bottom are left holding a damp sweat sock... (I was going to say "moist jock strap", but that sounded too crude).
In fact some aspects of MLM has merged with other internet shenanigans and is stronger than ever.
MLM still exists because people can be sold a get rich quick scheme as long as they can point to a few individuals who seem to have gotten rich quickly, regardless if the actual pathway to those riches are being correctly or accurately portrayed, or if they are practical or genuine at all.
Same with NFTs and Cypto in general.
Yeah... sorry for my lack of enthusiasm, but these sort of things don't go away easily, and when they sorta do, they just morph into something stupider or worse.
It would take effort to either fix the wrong/bad parts crypto/NFT or to regulate the bad parts of all things crypto... and I think by now we should all know how those sorta things work out... human nature dictates that we don't start bailing out the water until the deck is level with the surface of sea.
Sorry to be a buzzkill.
Yes. Page saved vs future deletion.
The dream was fleeting and illusory.
But fear not! The damage done to corporate reputations and brand names shall live on just a while longer.
Sadly Crypto fans respect Elon Musk's voice. He's been resposible for crashing it and his own company stock when he thoughtlessly tweets. He recently said he has asperger syndrome. His own company board and the SEC have him in their sights over his tweets affecting and tanking both. He did cause dogecoin to skyrocket months ago and then tanked it with his comments. The SEC may end up penalizing him as his comments have driven Telsa stock up and down over troll like statements. So far I don't think he said anything on NFTs though there have been experts who call it a junk fad investment.
And that exactly undermines crypto proponents argument that crypto is great unmanaged. It will be easy for rich folks and big stakeholders of a coin to pump and dump and toy with it.
Here is a scathing article on crypto and why it is becoming a tool in the hands of the unscrupulous : https://blog.dshr.org/2021/06/unstoppable-code.html
Excerpt :
The externalities of cryptocurrencies include:
I really love to hear an official word from Daz what parts of NFT are still good for artists, as the two are linked and as such it is promoted? Never mind I first have to buy a coin to get my precious NFT which is nothing but a link.
Well I agree with the crypto part, I do not see them going away anytime soon. But NFTs (at least the current generation) will only be around to any affect as long as there is a substantial return with "acceptable" risks, at this moment that does not seem the case IMO. And as NFTs are moving away from the "Art Business" and are moving more and more in to sports memorabilia, it may dilute the potential market even more. Sports memorabilia are more local, people in the US are general not to interested in sports on other continents, same goes for Europe and I imagine Asia. Also that they are hard to define doesn't bode well for them.
And NFTs as crypo currency itself doesn't make sense either as there are better alternatives. I just do not see the business case anymore for NFTs at the moment, hence my optimism.
But time will tell I guess.
I guess I should have said legal business case in my previous post.
Well, you have their implicit statement by their actions the last couple of months, I wouldn't hold your breath for anything official.
So what's the tally on Daz Artists making truck loads of coins and swimming in champagne and adoration thanks to NFT? Please Do Remind Me.
I do have a tally on things I did not buy while otherwise I would have, around $200, at least.
That $200 might almost mint you an NFT, maybe? (I kid - Terrible idea, obviously. Bad joke, too)
Well, El Salvador officially made Bitcoin legal tender, so maybe all the artists who got filthy rich in Bitcoin are on vacation over there trading in their cryptocash for Salvadoran Colóns... Wait, I forgot, they abandoned their national currency in favor of the US dollar as legal tender...
Wait... the US dollars and Bitcoin are the only legal tender there?... That sounds... really... really... susp... SPECTACULAR!
TOTALLY SPECTACULAR!
Well, it's good to see that at least one country isn't worried about the stupid climate or other inconvenient issues and is embracing cryptocurrency so all the formerly starving artists can trade they Bitcoins in for cold hard cash!
No, you're not actually kidding as when DAZ started their NFT games it was figured that it would cost someone a bit more than $150 to buy the cybercoin needed to then make the NFT - and the added transfer fee to sell it was a bit more than $100, meaning that an artist trying to sell a NFT needs to sell it at better than $250 just to break even. I haven't bothered to check to see if the cybercoin to $ has gone up/down much since then, but NFTs are still a bad bet for anyone but the ones selling/transfering them ...
Yikes! 0O
Wasn't aware the exchange rate was THAT much. Just figured it was a means of selling virtual bubblegum cards to earn pocketchange and lunchmoney. o0 No wonder it tanked.
It seems expensive, but people think they're going to make far more money on their sales and resales. Some people have, too - Millions of dollars! But it might be best to think of those people as lottery winners. It seems the market peaked and the bubble burst, but there are still a lot of ongoing efforts to make the NFTs go. From what I can tell, companies like Marvel and DC are getting involved to sell collectibles. Seems like a big waste of electricity and computer hardware to me, but I think NFTs may stick around for a long time.
Greed once again wins. If we had any passion for Climate Change as we have for making Bitcoin bank, we would have been living on a green sustainable planet a long time ago.
People tend to get unrealistic when it comes to potentail profits. Same applies to current (real) stock exchange, not only crytptocurreny or NFT's. In German, there is a term "Gier frisst Hirn" - greed eats brain. In my personal theory, every inhabitable planet in the universe has a constant total of intelligence. Same applies to Earth. The problem: constant total intelligence, population is growing.
That would explain a lot.
Greed always wins and consequences be damned.
I'm pretty sure that if grinding orphans into a slurry and pressing them into a legally tenderable disc that could be peddled as a high value commodity, it would be the next big sensation in investment mania...
Maybe I should pull a Jonathan Swift and write my own Modest Proposal and see if any of investment bros bite for my WaifCoin... WaifDisc... WaifWafers... I'll work it out...
Soylan Green...
Soylent Green is people!
As NFT is still not dead and banned, here some possible good news: Cryptocurrency miners in China are beginning to sell off GPUs for cheap