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NFT sales plummet

NFT sales have fallen by more than ninety per cent bringing deals to a twelve-month low. The collapse in their sales comes at the same time that the broader crypto market is in turmoil. Some currencies have seen their values wiped out, and there are reports of investors losing their life savings.

One Ukrainian man converted almost all of his family’s money into the crypto ‘stable coin’ Terra. Unlike most cryptocurrencies, stable coinwas not meant to be a risky investment. They were supposed to maintain a fixed value of one US dollar. They were allegedly stable because of the amount of crypto that backed these currencies, but when the run on that market started, the back-ups also failed. When this happened, Yuri Popovich, who lives in Kyiv, $10,000 were worth less than $500. When the Russians invaded, Popovich realised that the value of Ukraine’s currency could be devalued and was also worried about banknotes being stolen by the invaders. He says that he has still not told his wife.

But not just stable currencies and speculative crypto coins have lost their shine. Non-fungibletokens (NFTs) have also been caught up in the story. NFTs are typically unique pieces of digital art. Between August and November last year,NFT sales were often reported as being in excess of 200,000 units a day. In June, the daily figure was down to around 19,000 a day and may fall further. It is not just the volume of NFT sales that is down; the value has also fallen through the floor. The market peaked at more than $4 billion in June 2021. According to market tracker NonFungible, this is now below $800 million.

NFTs were hyped as the next big thing. Projects like Bored Ape Yacht Club fuelled the market,and celebrity owners got involved. These included Justin Bieber, Eminem, and Madonna. Nike and RTFKT launched a line of virtual sneaker NFTs called CryptoKicks, which sold for well above six-figure sums. The advantage is that you could collect sneakers without them taking up space in your wardrobe. Former First Lady Melanie Trump got in on the craze and launched her own NFT venture. Her NFT allowscollectors to buy a digital painting of her eyes.

With all these big A-list celebrities getting excited about NFTs, you might think more of them would have been snaffled up by their fanbase. However, data from Chainalysis, a blockchain analysis platform, reveals that NFT ownership is limited to a few hundred thousand people. While 300 million people worldwide usecryptocurrency, only a fraction are involved in NFTs.

The fall in NFT sales can in part be attributed to the crypto market crash, but this is not the only factor. The cryptocurrency market fell from a value of almost $3 trillion at its peak to below $900 billion at its latest valuation. This is not the first time the crypto market has crashed, and it probably will not be the last. It is hyped as being the best way to get rich quickly, but it has also been criticised for having no real commodity value. Many experts say it is not investing but gambling. If you like to have a gamble, why not enjoy the gameplay at the best online casinos, with lots of fun gaming options to choose from, including table games and slots.

Emily Wigoder, CEO of the NFT agency Ad Astra, is reporting that NFTs are still a relatively new technology, and their benefits have not yet been fully realised. She is of the opinion that they could have a vast range of uses across almost every industry. She says that the plummet in the market is a cooling-down period after the initial excitement. As the NFTs still retain all of their aesthetic value, there has been no actual loss in their value.

The advice for owners of NFTs is not to panic but to consider the best products to invest in and enjoy them as artworks, not commodities.

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