Apparently the once-burgeoning NFT market has moved into the, “Hey, maybe there are some deep pockets we can sue in an effort to get back a portion of the money we lost” phase. NFT prices generally have been falling for a long while now, but they’re dropping like a stone as ‘investors’ in the Bored Ape Yacht Club add Sotheby’s auction house to their list of defendants they accuse of wrongdoing:
Neither they nor their attorneys want to understand the disclaimer on NFTs.
Luckily, the attorneys will be smart and require “cash up front”–or they won’t get paid.
NFT prices dropping like a stone?
Wow! I bet nobody saw that one coming.
Too bad there was no way to “short” NFTs…
Also in today’s NFT news…one of the promises of NFTs is that creators can collect royalties each time the NFT is sold.
It was good idea while it lasted.
Who me worry? LOL
The market was down another $2 B in the first six months of the year. We are barely past that by 7 weeks.
You expected volatility? Right? Of course.
The pattern is a four year cycle. Two years up, two years down repeat. The traders are very aware of that. The question at this moment is will the trader act preemptively and buy the market. Eth capitulated on Wednesday. Friday’s sell volume receded.
Even if this goes up it is about as high risk a buy as you can get. So of course human beings are involved.
The BTC chart to see the pattern
If this goes up we are not repeating 2019 where the next bottom was in April 2020. The traders will be seeking a new bull market.
If some of you are correct this is just the beginning of a complete failure for crypto.
What is the difference when we are talking NFTs? If we go into a bull the NFTs will recover and much more. NFTs are not just the art. NFTs are Ethereum based values.
A rare mint on gold has more value than the gold but when gold goes into a mania? How often does gold go into a mania? How often does Eth and BTC go into manias? We are about to find out.
For those who think Eth and BTC have had their mania that was the second mania for Eth and third mania for BTC. Tops in the different phases of this cycle have been happening three months early for a year now. If Eth and BTC go into a bull market now that will be an additional two months early because of trader anticipation.
Separate note my NFTs are finally saturating a market audience. It is very complex choosing the target audience, understanding how to use FB ads manager and making better ad copy.
I have become confident the NFTs will sell. While the ads run I am going by the rule of 7. That means the audience will have seen the ads at least 7 times before some of them buy. That should be in mid to late September. That though is not the end of running ads. The cost by then $420 for some 105k impressions seen by 15k people rough numbers. It may mean going another two weeks then to see if the entire thing pays off. By October they all should be sold.
Good luck Leap!
My understanding is that the recent price collapse in the NFT market is independent of ETH values - the price denominated in ETH has fallen for most NFT collections. For example, the Bored Ape Yacht Club floor price fell about 20% this week in ETH:
Because ETH also fell recently, the dollar-denominated price collapse is even larger. But it seems like this is also something specific to NFT’s, not just the broader crypto ecosystem.
Volatility. Not worth writing off anything.
Eth is testing support. If it succeeds it will go to a new high. If it fails we will have a conversation more along your lines. I would only move the goal post for a bottom to January.
Art as in BAYC cards and CryptoPunks same corporate owners have a problem. Cards are common. Yes those two collections are worth far more for reasons but the tech to create them is less meaningful now.
Cards have become less about art and more about game experience or social experience. That maybe waning as well. Especially for the BAYC. The big stars are not pumping them. The parties in different locations, events, can only matter for so long.
Art itself for art’s sake will find buyers. The CAGR on the better art suitable for investment is 25% in the traditional markets. There is that potential and more over time for NFTs. Not many of them but still some of them.
There are 40k traditional artists in each of London and NYC. Only 60 to 90 artists in each city are taken into the gallery system where values soar. That leaves at least five thousand artists in each city that really were deserving but did not make it.
The NFT world opens up the collectors and artists to more than the traditional gallery space can. The younger collectors are not going nearly as much to the traditional galleries.
In related news, the Bitcoin Ordinals NTF market has collapsed.
I am so glad I never paid enough attention to or investment in all this stuff to have even the vaguest idea what that phrase means.
(something about tulips?)(they are still pretty!)
No expert here on that. I think it is just BTC NFTs.
These guys are cherry picking when to discuss the demise of NFTs and crypto. Proven right they will have made zero dollars out it. LOL
Proven wrong they wont show their faces ever again. LOL
Or we can change the topic later on. LOL
Demise is a strong word! The only facts right now are that NFT trading volume is down about 94% or so, and that prices have dropped a little (~20%) recently. That’s not “demise”, that’s just a very strong decline.
Maybe it’s ever increasing boredom?
“NFT’s? Oh yeah, back then with Trump. Been there, done that…” But then, I’m the idiot who thought Brexit could not happen.
The boredom is very real. The people producing them are all doing the same things, games and events. When do you as in a young guy collect any of these things and start to say $crew playing that game and who cares about seeing a bunch of guys at a party?
David FB maybe you want to see a lot of guys at a party…but for the majority of straight guys when the mix is not 50% women or at least a few…why go? Because you own a card? That wont last for years on end. It might well be done.
Meanwhile artists were making art not cards as art. The art may well be doing extremely well. You do not go to an event or play a game where all the hype was.
Fine art is a great investment. NFTs are the leading edge in fine art. The major younger collectors wont go to Sotheby’s or the Gagosian Gallery all that much if at all. This is the digital age.
It is all about digital art. The “token” is only a canvas if you will. If you buy digital art as an investment as many wealthy young people do then you need a token to make it valuable.
Arguing that the market is done or whatever has nothing to do with art. The card market is in ruins. That is where the fad was.
Yes, you have a point. What will happen with art in our Brave New World is puzzling, and NFTs might be a key part of the answer.
Back in my very poor days working my way through art school I saw somethings in NYC and in West Hartford center. The first were good reputable galleries and everything was in the tens of thousands of dollars. Stacked up and not moving. The next were oil still life paintings worth over $3500. This was 1988. The range for better oil paintings in the burbs was maybe $2500 to $10000 commonly.
I am selling $7000 animations that are investment grade. There is one issue. Using digital equipment I made 200 of them. As investment grade art they really can appreciate. As 200 of them I get less a piece but I get a lot of money for one project. If they sell. I think the ads will work.
The chances of NFTs being part of the answer are very close to, if not actually, zero.
We’ve had a couple long threads on this, but in a nutshell many people believe that by buying an NFT they are buying the intellectual property rights of a digital piece of art. And they believe as you buy and sell the NFTs, the IP rights are transferred and recorded on the blockchain. And in some cases he original artist gets a cut of each subsequent sale. Hence the appeal of NFTs.
But in reality the IP ownership is registered off the blockchain. What happens on the blockchain doesn’t count. On top of that, when you boil it down an NFT is really just proof that you own a URL that points to a .jpeg. The .jpeg is almost never stored on the blockchain, it is usually stored on a centralized server like AWS. Which means you don’t control it.
One appeal of NFTs is that they are supposedly decentralized. But in reality they are about as decentralized as a cheese enema. Players like OpenSea, ConsenSys and Animoca dominate the NFT market. As mentioned above, OpenSea decided they weren’t on board with the promise of perpetual royalties, and ended the program. They can do that because they are the 800 pound gorilla. Great if you are the buyer, sucks if you are the artist.
For some reason when you mention “blockchain” a whole bunch of people show up who want to be separated from their money. It is a fascinating sociological experiment.
Sorry most of that is made up of non issues. The wealthy collectors know they do not often get the IP unless it is stated as such in the contract when sold. Same with buying an oil painting. If the artist wants to sell his or her IP they can. Most wont do so.
The only thing sold is the copy of the art with the token. That token is the property. Just like people trade in Poke Mon cards they trade in NFTs. Further just like people trade in canvases they trade in NFTs. Trading in a canvas or a token everyone understands they do not get the IP. The property is the canvas or in the digital world the NFT.
What people think and what the market will do are two different things just like the stock market.
It is not that big a deal. If I am successful in just selling the NFTs who cares.
I have a younger friend who sells other stuff on a totally different blockchain, WAX I think it is called. It is lower budget. He has sold things generally for about $100. He has made 100s of thousands of dollars in two years.