The speed of the market turnround is arresting but believers think these assets can outlast the current crash.
The most speculative of all speculative assets, NFTs, are crashing. The value of a cryptocurrency index created by researchers has dropped 78% from its peak in October. This is a more significant decrease than in tech stocks or bitcoin.
This is awkward for celebrity hawkers and businesses who have spent months promoting NFT projects. Many are only now revealing their plans. Instagram announced earlier this month that collectors would be able to share their NFTs on the platform. Spotify announced a week later that it was testing a feature that would allow musicians to market their NFTs.
Right now, the only thing you can do with NFTs is use them as a profile image. As a result, NFTs with a real-world benefit (such as a connection to a well-known artist) are popular. Viewers who purchase a KillRoy NFT, for example, will be able to see director Kevin Smith’s latest flick.
The hope is that NFTs will demonstrate the use of cryptocurrencies and blockchain technology, which has long been a source of contention among crypto enthusiasts. NFTs are essentially digital contracts that allow you to prove ownership of anything without the use of an intermediary. In theory, they could be used for anything.
Followers believe that the present sell-off is only temporary. They’ve seen this happen before.
