Apr 28, 2022
JACK DORSEY’S TWEET SOLD FOR $2.9 MILLION NOW SOLD FOR ONLY $280. ARE NFTs A FAD?
Just when people were starting to wrap their heads around NFTs –its digital art, made by artists and stored online — Twitter founder, Jack Dorsey made headlines and $2.9 million by selling his first ever tweet as an NFT. The tweet on May 21st 2006 read, “just setting up my twittr”. All the proceeds from the NFT sale would then be donated towards COVID-19 relief efforts in Africa.
Crypto entrepreneur Sina Estavi purchased the NFT for a whopping $2.9 million in March 2021. Last Thursday, he announced that he wished to sell the NFT and pledged 50% of the sales proceeds to GiveDirectly, a charity that allows donors give money directly to people living in poverty. He had listed the NFT for $48 million last week. This is more than 16 times the price he had paid for it. The auction closed Wednesday, with just seven total offers ranging from 0.09 ETH ($277) to 0.0019 ETH ($6), which is well below the owner’s bid evaluation of more than 15,987 ETH. The GiveDirectly charity is now expected to receive only $140 — half of what Mr Estavi received as a bid for the NFT.
ARE NFTs A FAD?
As from the sale of Jack Dorsey’s tweet NFT, there is uncertainty in determining a NFTs price. Sometimes, prices are driven by speculation rather than by value. From this, one might say that NFTs are a fad but that’s not the case really.
Unlike cryptocurrencies, NFTs are one of a kind, unique and aren’t interchangeable. In short, they are cryptographic tokens that represent a unique asset on the blockchain. NFTs have grabbed the imagination of the broader public recently with many of the world’s leading celebrities and brands getting into the craze. Celebrities such as Mark Cuban, Paris Hilton, Ja Rule, as well as brands, including the NBA, Adidas and Formula 1, have all gotten into NFTs.
Some of these are eyebrow-raising, especially at their price valuations, so it is hardly surprising that many are calling NFTs a fad.
Although still in early development, linking real world assets with NFTs is something that would pop off soon. This can digitize the way we prove ownership of assets by creating tokenized assets of deeds and that can move illiquid items like houses and lands onto the blockchain. As the world embraces the metaverse, NFTs will become the thing to own. As this would give people access to certain exclusive things in the metaverse.
FINAL THOUGHTS.
NFTs are slowly becoming an integral part of our everyday lives. It plays very well into the human needs of ownership and authenticity — a primary reason why a lot of projects are diving into it. NFTs are great business opportunities for artists, musicians and businesses, as they are a great way of making money. This new internet frenzy has attracted artists, celebrities and top-caliber athletes who have flooded millions and millions of money into the industry and this might be a reason as to why NFTs are here to stay and are far from being fads.
So, are NFTs a fad? Maybe, maybe not. But NFTs are the future of the internet. I can’t really find a better reason to invest in NFTs rather than “Follow the smart money.” Ever wondered why some of the smartest investors on the planet are betting billions of dollars on this space?
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