After being bought for $2.9 million, the NFT of the Twitter founder’s first tweet is up for auction again. Problem: no one wants to buy. The highest bid does not exceed 2 ethers or 5,000 Euros.
This is an important story in the NFT world, because it provides some necessary reminders about a technology with endless potential as well as an industry that relies on a lot of speculation.
On April 14, 2022, the NFT of the first tweet posted online is for sale: owner, entrepreneur Sina Estavi, Hoping to make $48 million. It bought it for 2.9 million last year. However, in the one-week auction, Sina Estavi received only about twenty bids, the highest of 2 ethers, or about $6,000 (5,000 Euros). This corresponds to 0.2% of what the owner spent a year ago to get this NFT. And half the amount he hoped to receive.
Twenty offers for NFT of first tweet well below purchase price
Although trendy, the term NFT (for the non-return token) is not always very clear. As a reminder, this is not a tangible object, but a proof of digital identity of a virtual object. You can imagine an NFT as an authentication token. Less abstractly, it is a string of numbers registered on the blockchain (a kind of ledger where everything is publicly recorded and stored without being controlled by a central body).
what exactly did you buy Sina Estavi last March, this is Jack Dorsey’s authentication icon in the screenshot of his first tweet. Frankly not wanting to keep it too long, he put it up for sale again on April 7 and announced that he would donate 50% of his earnings (about $25 million, according to him) to charities. Dorsey also answered with a salty message: why don’t you donate 99% of the total? “the owner finally said he’s ready to make the Dorsey” wanted “.
The problem is that the amount achieved so far is ridiculous compared to what the entrepreneur hopes to achieve. Within a week, the highest bid had not even exceeded $280: After an April 13 article on the Coindesk site noticed this unusual story, the amount rose to $6,000 in a second auction.
How can an NFT go from $2.9 million to $6,000? As in the art market, the value of an object depends on many factors, such as the originality of the work, its creator, as well as the weight of supply and demand. NFTs that are caught at a high price (such as Bored Apes) are, for example, highly sought after because they are… so sought after. As with stock market mechanisms, an asset’s value sometimes increases simply because enough people believe it will increase further.
Where does the value of an NFT come from?
Two days ago, the first demonstration entirely dedicated to NFTs was held in Paris: Numerama met a lot of entrepreneurs there (masculine is not used by grammar rule here; NFTs are overwhelmingly preferred by men). revolution “builds a large self-proclaimed community” utopians “.
The technology of recording data on the blockchain, in itself, could allow for enormous digital advances, especially in terms of security or artists’ wages – the Le Meilleur des Mondes show on the Culture of France, in which Numerama wrote a weekly chronicle, also that his profits have increased tenfold since he recently started NFT. welcomed an artist who saw it.
However, for now, the environment is filled with individuals driven by opportunism and profit seeking: many people are investing in the NFT environment out of fear of missing out on the next digital change and the opportunity to weigh it in a future network. Paradoxically, it was touted as a place of horizontality. As with the Metaverse, the world of NFTs exists because it is said to exist. This could be the start of a revolution, and maybe we have to speculate and overinvest in some superficial projects to be able to do something solid and serious in a few years. Still, a virtual token that traded for $3 million has lost 99.8% of its value in a year, showing how the future is still and always a story of faith.
Source From: Google News