CryptoPunks would be less popularAdmin
Times are tough for NFTs too. A non-fungible token from the famous CryptoPunk collection has just been sold at less than 80% of its investment value. The sign of a lack of interest or the consequence of a crypto market on fire and blood? Probably a bit of both. The hype around NFTs in 2021 cannot both withstand the wear and tear of hype and the collapse of Bitcoin and its likes that takes everything in its path. We have experienced euphoria, it is now time for a purge before the start of a new cycle that will retain and relaunch the best projects. However, let us beware of too hasty conclusions.
CryptoPunks are trading at a discount
CryptoPunk #273 has changed hands to 55 ETH ($139,530) on Sunday, after being bought for 265 ETH (almost $1.03 million) in October.
According to the account Twitter from CryptoPunks Bot which lists the latest transactions in this field, it is not the only flagship of the collection launched in 2017 by Larva Labs which has suffered such a depreciation. Of the last 10 CryptoPunks that have been sold, eight have been sold at a loss.
In a crypto market that is experiencing some of the darkest hours in its history – but rest assured, there have been other bloody episodes during its thirteen years of existence from which it has always recovered – the phenomenon is not surprising. There was even no reason for the NFTs to escape the devastating groundswell that is destroying everything in its path.
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Some, however, opt for a less “generalist” version. For them, it is rather the proven decline of digital objects whose trigger was the indifference aroused by the sale of the first Twitter tweet of its founder Jack Dorsey. After having bought it for 1630 ETH (the equivalent of 2.9 million dollars), its holder, the sulphurous Sina Estavi, listed it for sale on the Opensea Marketplace with a starting price set at $48 million. The highest bid to date was $24,741… The only lesson is that greed has its limits.
An NFT market that held up until the ongoing blast
Because, indeed, and until this market shift, this emerging NFT sector had a rather satisfactory start to the year. with growing adoption, driven by collectors and investors who are often located outside of this digital world. The total amount sent by aficionados as of May 1 already showed a total of $37 billion almost as much as for the whole of last year.
In fact, like all segments of the crypto ecosystem, NFTs are subject to fluctuations but without this calling into question, no offense to their detractors, the relevance of their existence. But in a very competitive market where marketplaces abound, it is still necessary to offer something unique that brings something extra to an already plethoric offer.. A condition that Coinbase does not seem to have understood, which launched, in the middle of a general I don’t care, its dedicated platform. Kraken, another major exchange ready to launch the beta phase of its NFT place, will offer it an additional attraction with a crypto loan offer backed by non-fungible tokens.