- Those massive NFT sales you see on crypto Twitter are not the tip of the iceberg – they are the entire thing
- Research from Bloomberg has found that 90% of NFTs purchased since June haven’t been sold since
- Most NFT buyers will be left holding the baby, and very expensive ones too
The streets of London are paved with gold, the Titanic is unsinkable, NFTs will make you rich. Three myths that at one time or another were believed by a great many people, and three statements that time has proved are far from true. The first two were proved no later than 1912, but the third has only recently come to light. Of course, those who have bought an expensive NFT, just like those who moved to London in the 1300s in search of riches and those aboard the Titanic on April 14, 1912, have probably found the hard way that the reality does not bear out the myth, leaving them holding a six-figure JPEG and wondering how they’re going to tell their wife. Now, statistics bear that out, with Bloomberg revealing that the vast majority of NFT buyers are left empty handed.
Massive NFT are Not Representative of the Market
As with yield farming in 2020, NFTs have taken over crypto Twitter in 2021, with a large number of heavily followed accounts posting their NFT purchases, and more importantly their sales, together with the sometimes vast profits gained from the transactions. This has led to huge numbers of people buying up any old NFT in the hope that it will be bought by someone at a higher price, copying their heroes on social media.
The truth, however, is very different. Bloomberg revealed a few days ago that 90% of NFTs bought in the last 90 days have not had a sale since. Combine this with the fact that the NFT market has crashed by almost every metric this month, and the harsh reality is evident; as Bloomberg’s analyst Gauthier Zuppinger says, the constant flow of ‘good luck’ comes from “a tiny piece of the community and some extremely lucky or well-informed people.”
Don’t Be Left Holding the Baby
The fact is that, as the data shows, almost everyone who buys an NFT is left holding the baby, especially after a market crash. Influencers and stories of multi-million dollar sales make it seem like all you need to do is buy a JPEG of a squiggle and wait, but the reality is very different – those stories aren’t just the tip of the iceberg, they are the entire thing. Don’t be on board the Titanic when it hits.