The Ponzi NFT market is collapsing as people realize
That stupid images of cartoon rocks are never going to have intrinsic value
Since reaching its peak late last summer, the market for non-fungible tokens (NFTs) has cratered.
Images that were worth (supposedly) thousands or even millions of dollars are now being pushed for a tiny fraction of that with no buyers. It seems that NFTs, at least in their current use applications, are mostly a bust.
Much like the Beanie Babies craze of the mid-1990s, NFTs were hot for a brief moment, but already seem to be on their last legs. It turns out that nobody wants to shell out hefty amounts of cash for pictures of rocks, for instance.
Last August, a report from crypto-collectible Ether Rocks was going for upwards of $300,000 a pop. All they were was clipart that someone could draw in Microsoft Paint in about three minutes.
Today, those same Ether Rocks are basically worthless – or rather, they always were worthless, even if people were paying astronomical prices for them at the time.
“Investors are justifying the value by arguing that these are Non-Fungible (as in, one of a kind that cannot be duplicated),” reports Zero Hedge.
“The irony is that this is exactly the same argument investors in Beanie Babies made stating that their toy was going to be one of a kind that others will buy for a fortune down the line.”
“It’s the classic case of the greater fool theory where you are buying an overpriced asset in the hope that someone will be willing to pay even more for it later on.”
Could NFTs potentially be used to back digital assets?It is not just NFTs that have no intrinsic value. For the most part, the entire crypto world is backed by digital 1s and 0s, and many popular coins have plummeted in recent weeks to multi-year lows.
