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Crypto investor brands ‘most’ NFTs ‘worthless’ after bubble begins to deflate
Bitcoin and cryptocurrency prices have been on a roller coaster over recent months, surging to never-before-seen highs before crashing back. Billy Bambrough explores crypto assets and where things might be heading.
The price crash, wiping around $1 trillion from the combined crypto market, has also seen the newly-inflated non-fungible token (NFT) bubble burst- with NFT sales down 90% from their peak, according to NFT data provider NonFungible.com. NFTs are blockchain-based digital certificates that can be assigned to virtual or physical assets such as works of art. Tweets and internet memes, including viral YouTube videos, have been sold as NFTs, however, they rarely convey any legal rights.
“NFTs are like ICOs,” said Keld van Schreven, the co-founder of KR1, a London-listed digital asset and blockchain project investment vehicle, pointing to the 2017 initial coin offering (ICO) craze in 2017. ICOs are a largely unregulated way of raising funds that gained popularity in 2017 and saw companies sell digital tokens to eager investors only for the value to evaporate. “No one is talking about ICOs now,” added van Schreven. “No one will be talking about NFTs in the future.”