Is the NFT market going through a crisis?

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The NFT market has begun to resent after the total failure of the attempt to resell Jack Dorsey’s first tweet, bought last year for almost 3 million.

NFT sector in crisis

When Sian Estavian Iranian cryptocurrency businessman, bought last year, on March 21, 2006, the first tweet in history, which the founder of the social network jack dorsey had decided to auction as NFT.

Many had described the operation as an investment in the future. Estavi had paid almost 3 million dollars to become the digital owner of the first tweet in history.

Dorsey himself donated the proceeds from the sale to African charities through a dedicated organization, GiveDirectly.

NFT Auction Failure Linked To First Tweet

Perhaps this can also be a consolation for the Iranian buyer who a few days ago tried to put the NFT up for sale again, but with very little luck.

The highest offer received was only $7,000, 99.5% less than the purchase price.

The incredible thing is that the owner of the NFT would have put it up for sale in OpenSea at a base auction price of $48 millionperhaps thinking of exploiting the emotional wave of the news of Elon Musk’s entry into the social capital and his subsequent bid to acquire control.

In short, this is perhaps the first real failure of a market that had tremendous growth in 2021, as recent reports also show.

The volume of operations exceeded the value of more than 24,000 million dollars, according to data from the specialized firm DappRadar.

But there are plenty of cases of million-dollar NFT sales, starting with records like Beeple’s famous collage “The First 500 Days,” which it sold for $69.3 million at a Christie’s auction.

Diversification of the NFT portfolio

Industry Outlook

But the question that arises spontaneously after seeing the resounding failure in the resale of the NFT in Dorsey’s tweet is whether this growth can be consolidated and maintained over time, or whether it will turn out to be a lightning bolt or the umpteenth technological bubble in history.

The fact that the world’s two most famous auction houses, Sotheby’s and Christie’s, have also entered the market should be a guarantee that at least in the art and collectibles sector there could be a lasting market.

Michael Bouhanna, Co-Head of Digital Sales at Sotheby’srecently said:

“I don’t think NFTs will completely replace real works of art, but we need to get into a different perspective. A process somewhat similar to the one we experienced when photography emerged as a new medium and when it was later recognized as an art form is taking place. We are experiencing a crossover phase, in which contemporary art is, within which artists who only operate in the virtual world must also be taken into account.

On the other hand, the NFT market It is mainly made up of people under 40 years of age who are very familiar with the innovations that this technology brings, which is revolutionizing many sectors. such as the world of art, sports and gaming in particular.

Its potential as an investment is still difficult to understand, as it is still a world partly to discover and explore.

The digital possession of an asset or a work of art is still a new concept and not easy to explain, and the mechanisms to convert it into a long-term investment, such as a work of art or a true collector’s item, are yet to be understood.

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