NFT’s are not in the toilet!

[Leap1]

@MarkR

FTX, having declared no withdrawals and bankruptcy, makes people who have lots of crypto stored at FTX very nervous. And they would like to get their crypto out of there as quickly as possible. Turns out that Bahamas has a regulation requiring allowing withdrawals. So looks like people are buying NFTs in the Bahamas at HUGELY inflated prices. Then, the seller of the NFT withdraws that crypto from FTX, and kicks back some of it through a different exchange to the buyer. There’s a story on CNBC about a guy who bought an NFT (worth $9 last time it traded a few weeks ago) for $10M. The supposition is that the seller then transferred ~$9M in crypto to the buyer on a working exchange, and the buyer ends up paying a “fee” of ~$1M for this service. I suppose the buyer figures, better $9M now versus $0 for a while, and maybe $5M when the bankruptcy unwinds in a few years.

That is not feasible. Not feasible at all. Thanks for nothing CNBC.

If I buy $9 NFT for $10 million in Eth from my $10 million in cash to have the Eth…and give the seller $1 million to take my $9 million…I have lost $10 million. I now have an NFT that will revert to $9 or so when I want to sell it. It wont magically hold any value.

There are NFTs denoted by art that has value. Like a Picasso has value. Or like a Mondrian has value. But a $9 NFT will never have value much beyond $9…as far as the art goes.

And if the buyer was smart enough to know which art on an NFT has a much higher value then he only buys that NFT.

The entire thing is a shaggy dog story. It is not doable. It is laughable.

Of course in a panic some people might be losing $10 million more.