The NFT craze seems to be ending, with many wondering what happened. The numbers speak for themselves. Many people lost their fortunes investing in NFTs. The question remains: who won in this ridiculous trend?
The first non-fungible token (NFT), Quantum, was developed in 2014 by Kevin McCoy, marking the beginning of the NFT era. But NFTs just became widely known in 2017. On the Ethereum blockchain at this time, various unique NFT collections emerged. But NFTs only became wildly popular in 2021.
At its peak, NFT art sales exceeded $15 million a month, and the most expensive NFT was worth $91.8 million. At that time, the NFT craze was at an all-time high, and people started investing in any NFT they could find. Though 70 percent of Americans still don't know what an NFT is, it did not stop people from investing in it.
There are two reasons why people buy NFTs: business and pleasure. Investors can buy an NFT to flip it later with profit, while others buy some so they can tell people that they have the original of something.
For those who buy them for pleasure, the dip in value doesn't matter much compared to the people planning to sell their NFTs later to recover their investment.
MIAMI BEACH, FLORIDA - APRIL 07: A view of collection during the launch of social investing platform eToro’s first NFT fund, pledging $20 million dollars for acquisition of NFTs from blue-chip and up-and-coming creators alike, at the Bass Art Museum on April 7, 2022 in Miami, Florida. The company celebrated the launch to fete its first collection, with displays including art and NFTs from Beeple, Bored ape Yacht Club, and World of Women, among others. The launch event allowed guests to view the NFTs in a professionally curated setting. The NFT collection can be viewed at eToro.art.
NFTs: The End Is Near
To date, 95 percent of NFTs are reportedly pretty much worthless, which spells disaster for investors. How can you sell something that's not worth the paper they're printed on or the disk space they're saved on?
NFTs rose to fame just over two years ago, and now, the end is in sight. What investors are doing now is putting a stop to NFT purchases and just moving on to other ventures.
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The Winners
CryptoPunks account for five of the 10 most expensive NFT sales so far. Together, that totals almost $61 million. Scores of celebrities fell in line trying to buy NFTs with the expectation of selling them for profit in the future.
Other companies like the Bored Ape Yacht Club successfully sold many of their NFTs at exorbitant prices. Clearly, most of the winners in this craze were the creators and sellers.
Though some buyers and dealers benefited from their deals, most big winners sold their items before the bottom fell out in late 2022. The interest in NFTs died down almost at the same time as the COVID lockdowns ended.
It is almost as if the insanity that made people buy and sell these items was just a side effect of being cooped up too long at home.
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