Is the NFT market in crisis?

We started thinking about a crisis in the NFT market after the total failure of an attempt to resell Jack Dorsey’s first tweet, Bought last year for nearly $2 million.

The NFT sector is in crisis

NFT . wallet
NFT portfolio diversification

when sian estavi, An Iranian entrepreneur in the field of cryptocurrency, last year received the first tweet in history, dated March 21, 2006, which was founded by the founder of Social Jack Dorsey I decided to auction it as an NFT.

Many have defined the process as an investment in the future. Estafi could have paid the price 3 million dollars To become the digital owner of First tweet ever.

Proceeds from the sale were donated by Dorsey himself to charity for African residents thanks to a specialized organization, GiveDirectly.

NFT auction fails for first ever tweet

And maybe this is also consolation for the Iranian buyer who tried this a few days ago Re-register NFT for saleBut With a little luck.

The highest bid received was only $7000, 99.5% less than the purchase price.

The amazing thing is that the owner of NFT put it up for sale open sea To the Base auction price $48 millionperhaps thinking about harnessing the emotional wave of the news Elon Musk’s entry into capital and its subsequent display of control.

In short, this is perhaps the first real market failure that occurred in 2021 Huge growthas shown in recent reports.

The trading volume exceeded $24 billion, according to the company’s specialized data DappRadar.

But there are many cases of NFT Millionaire Sales, starting with records, such as the famous Beeple Collage “The First 500 Days”, It sold for $69.3 million at Christie’s auction.

Industry Perspectives

But the question that automatically arises after seeing the resounding NFT resale failure of Dorsey’s tweet is whether this growth will hold up over time, or whether It will turn out to be a flash in the pan or another technology bubble in history.

The fact that the two most famous auction houses in the world have also been launched in the market such as Sotheby’s and Christie’s should be a guarantee at least in The art and collectibles sector can have a perpetual market.

Michael Bohana, Co-Head of Digital Sales at Sotheby’s, He recently said:

“I don’t think NFTs will completely replace real works of art, but we have to take a different perspective – he continues – a process similar to what we experienced when photography became a new medium and when it happens later., it has been recognized as an art form. We are going through an intersection, where there is Contemporary art, where artists who work only in the virtual world must also be taken into account.”

On the other hand, the NFT market mainly consists of people under the age of 40 who are aware of the new innovations introduced by this technology which has revolutionized many sectors, Like the world of art, sports and games in particular.

However, its potential as an investment is still difficult to understand, and it still is A world to be discovered and partially explored.

Digital possession of a good or business is still a new concept and is not easy to explain, and it is still to be understood what and how the mechanisms can make it A long-term investment, such as a work of art or a real college item.

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