Is NFT overrated?
As a follower of crypto news, there is something that constantly makes me scratch my head about every now and then. One that could change the I look at notions like "art", "beauty", and "value".
I'm of course talking about NFTs...And I'm probably not alone...
I'm sure that many of you guys are looking with popping eyes at the crazy prices we see for some random NFTs.
For instance, last April, we saw the "Disaster Girl" meme selling for $473k
Yea, it is a funny meme and everything but is it really worth about half-million dollars?
You may be saying that it is just a single outlier case, but the mere fact that there is a lot of similar non-effort images selling for incredible amounts of money...
Just last month, An "ether rock" invaded the crypto headlines after it was sold for 400 ether, or about $1.3 million at the time.
I know that beauty is often in the eyes of the beholder, but truly I still can't seem to understand what makes the most basic JPEG image worth that amount of money...No matter how you look at it, It's just a simple image of a normal rock. Even a ten-year-old can draw better than it.
To top it all, a few days ago, PleasrDAO purchased the original image of Doge as an NFT for 4 million dollars and then split it up into billions of individual tokens "in order to allow others to get a slice and have part-ownership of the artwork", which has given it a new valuation of $300 Million dollars!
In all seriousness, upon seeing these ridiculous valuations, one could start doubting themselves.
What on earth is going on? Is it me who lost the ability to see "value"? is there any money laundering going on there? or is it just a short-term bubble that could burst at any time?
Well, allow me to share with you guys my thoughts on the matter...
NFT is no doubt a revolutionary space that has the entire ability to change the traditional art world forever. That said, I still have a feeling that the main kicker of those huge evaluations is something beyond "art"- something instinctive in the depths of human beings, which is arrogance and ostentation.
Think about it. Are those buyers who are willing to throw hundreds of millions of dollars for an image of a rock, dog, or whatever- really doing so just because they like looking at it? Or they do this because they think it gives them the prestige needed to brag in front of their fellow millionaires?
I happen to think the latter, at least for most of the cases...
Just a single tweet of an "influencer" on a random NFT is more than enough to push those who love stature flexing to buy that NFT to tweet about it too... That way, they have the "bragging rights" among their billionaire gangs.
"Oh, you have paid one million dollars for a simple image? You’re so rich, man. Can't imagine how many mountains of money you're stacking"
So many people want to be told such phrases. They want to be highly respected and revered. This usually comes at a price, and oddly enough, the price itself may be the reason why they so much want it
I really can't think of another way that "justifies" the outrageous prices of some NFT products that randomly pop up out of nowhere. And it is in fact something not limited to NFT. Just take a quick glance at the traditional are market to find out that there is no shortage of unreasonable valuations too. And this is by the way the main reason that some people buy top-brand products such as Rolex, Rolls-Royce, or Apple. Not for its material superiority, but because of the esteem, it brings among the rich...
Despite all that though, I do not think NFT is a bubble that could burst at any time because while there are hundreds of people buying NFTs for bragging, there are thousands(and millions to come) who really appreciate art and are willing to engage with it for the long term. Moreover, NFT has already opened the doors for artists and designers to reach people directly without any interference from any third party. We have come to this point and the clock never turns back. So yes, I strongly believe that the NFT space is here to stay...
This is my mere humble opinion and I'd like to hear yours...
PS, Unless otherwise stated, all images in this post are either my own design or from free photo-sharing sites (e.g. pixabay.com)
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I think the real value of NFTs will be in gaming. Once big gaming companies realize the power they give to their customers they will never look back.
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There are already big companies engaging with NFT and I think more has yet to come...
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These might be fake trades, although Justin Sun did spend an outrageous amount for a silly rock. Justin Sun trying to help Tron gain attention, anything he does is a marketing move.
He is not a moron, but sometimes marketing needs something better to work, not rocks. If this was a message that anybody can create an image like a 5-year-old and sell it for big money, then I don't think it reached any target group.
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Marketing tactics or not! Whatever can take his bloody hands off pumping and dumping Hive tokens just to make Hive look bad works for me. So if there are more people who are being distracted by these meaningless shiny toys rather than bugging the hell out of other projects just because they have nothing else to do can jump on the NFT wagon as far as I’m concerned.
Eventually, NFTs with real utility will surface while those meaningless ones will be left behind. Meaningless NFT’s are only better than meme tokens with no utility. Meaningless NfTs only stand a better chance of going extinct because a utility can easily be tied into it and fly rather than on useless meme tokens.
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I couldn't agree more! 👍
No matter how great any space is, there are always abusers and bad actors spreading here and there. But just as you've said: real utility will surface while those meaningless ones will be left behind
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Justin is not alone, there are hundreds of buyers doing the same. And they are not "fake" trades because they are already recorded on the public blockchain, but I agree that it could be a marketing move of him.
Of course not. Not every body is able to make huge money for a simple image, but the ones I mentioned in the post are all true ✔. And there is no messages here, I'm just sharing some news and thoughts with others...
Than you for stopping by
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There is too much washtrading with fake volumes in exchanges already. The expression from one pocket to another has a huge meaning within crypto.
This is common NFT tactic to boost sales and volumes. Unless of course someone performs blockchain analysis and has access to names connected with addresses. Some NFTs were found in 2020 to be pumping artificially with fake trades.This is how the NFT "craze" started, by whales wash trading at OpenSea.
When I called the trades fake of course I didn't mean the transactions didn't happen, that would be a huge and naive error.
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Ummm, you have a good point. There might be some nasty whales boosting sales and prices in order to gain the attention of naive newcomers. Not good for the long-term reputation of the NFT nitch and crypto in general.
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You are only surprised about the outrageous price of NFT's because you are only seeing the ones belonging to popular companies and celebrities. There are NFT creators that are struggling to get people to patronize them despite the fact that their creation is cheap.
To even sell such NFT after buying is something that is very difficult.
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You're totally right. That's the whole point of the post.
While there are small artists struggling to get some attention by creating great pieces with cheap prices, a lot of " art collectors" are busy following up on influencers' purchases even if they were just a rock!
Thanks for stopping by
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I could see use-cases created for all sorts of NFTs, similar to how games like Splinterlands uses them as cards to play against each other. Staking, NFT-Fi via loans and reward tokens - basically some sort of NFT metaverse in which the bizarre stone NFT becomes a cog in a wheel of futuristic value creation. The first signs are on the horizon.
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Splinterlands is for sure a good place to enact one of the real uses of NFTs. And I hope that many other blockchain-based games will come up in the future
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I don’t see any value on NFT that does nothing. A mere JPG or PNG is not enough for me to spend money on it. But I have spend a lot of in NFT with a utility like Alien Worlds or Splinterlands.
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NFT has huge potentials that can be used for in the future such as gaming, ownership, design, or art...But I doubt that a mere image of a rock can be considered "art"
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No NFTs are not overrated; they are hyped up and over priced right now.
There is a tremendous future for NFTs, but not down the path we are going. They will denote ownership of assets that are backed by network effects. This will be likely pertaining to gaming or other virtual assets that are utilized.
They will also be the defacto form of Intellectual Property. That said, there has to be something intellectual first, a situation that is not present in the environment of today.
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This is exactly what I believe...
NFTs open the doors wide to huge potentials in the future, but I think it's being exploited for quasi-scams things today, especially when a popular company promote something of non-value as an NFT
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I kinda feel like the fact the article has to ask this question says it all. Virtual goods and intellectual property is not a new concept it's existed for well over 20 years now. Crypto has rebranded it into yet another pyramid ponzi scheme. It's just another bubble that will burst. another scheme to pump up prices. It's nothing really there. Now there is a future in virtual goods but nothing in crypto so far presents that properly. Perhaps some point in the future nft's will be very valuable. that doesn't do any of us any good now. The problem is the nft projects that may be the valuable useful ones aren't the ones that's around today. So if they aren't the ones that's around today. Then as an investor that doesn't help you.
Sure it's bitcoin billionaires playing with their thumbs and pumping up nfts for gimmicky reasons, however that's all it is. there is no real demand for it.
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This overvaluation has always been there in the art world. NFTs are just bringing it mainstream. It is more the legend that builds up around the piece that brings the value. It is more an investment that you will find a bigger idiot to buy from you. Let them at it as it is helping a whole group of artists monetize their work in a more democratic way.
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