Do NFTs have value?
NFTs and the broader crypto space provide an excellent look into value and how humans come to agree on it. For years the art trade has tossed around billions of dollars in the pursuit of “true value”; bids climbing higher and higher breaking new records every year. With everything from monkey pictures to real estate having success in the NFT marketplace, it’s probably obvious that something like Jack Dorsey’s first tweet would sky rocket. However, someone eventually lies at the end of the transaction chain.
Sina Estavi bought Dorsey’s inaugural tweet for $2.9 millions dollars then looked to flip it for close to $50 million. The highest bid received since posting has been $3600. A cautionary tale indeed pointing to the fickle nature of speculative value assets. We could look at this ask of $50 million dollars and scoff, but is it that outrageous? I’ll also ask the following; what if we had seen the opposite result? For instance, “Man sells Jack Dorsey Tweet NFT for $50 million dollars”. Different reaction perhaps, but no less cringe inducing.
The point is no real valuation guidance in the NFT space. For those looking to collect items out of pure love of collecting, it’s pretty straight forward: pay what you want. But for those looking to invest in NFTs, it’s critical to understand NFT valuation lies solely in what someone else is willing to pay for an asset with no revenue stream, legal rights, or even exclusivity. Proceed at your own risk.
