NFT of Twitter founder Jack Dorsey’s first tweet that sold for $2.9 million is now worth less than $4
When NFTs were at their peak, one cryptocurrency entrepreneur by the name of Sina Estavi decided to purchase the one of Twitter founder Jack Dorsey’s first tweet for $2.9 million.
It was an astounding amount of money to spend to own a digital copy of a tweet.
But Estavi is probably kicking himself right about now as OpenSea data has revealed that the very same NFT is now worth a measly $3.77.
That won’t even buy you a coffee. Forget the soy latte.
According to Mezha, Estavi hoped eventually to sell this NFT for $48 million and send 50 per cent of the proceeds to charity.
But things didn’t go as he planned, as the NFT market collapsed and it saw a significant drop in the value of non-fungible token platforms.
A non-fungible token is a digital identifier recorded on a blockchain, and is used to certify ownership and authenticity.
According to Chainalysis, the average price of non-fungible token sales plummeted by 92 per cent since the beginning of May 2022 (the price fell from $3,894 to $293), as per UPYO Blog.
Earlier this month, the popular NFT collection experienced a nearly 88 per cent decline in floor price since its April 2022 peak, according to Decrypt.
However, many other NFTs are also dropping, including Azuki, another blue-chip project that recently had its floor price sink 59 per cent.
The floor price for Beanz, another collection from Azuki creator Chiru Labs, has also plummeted 77 per cent.
But why do NFTs keep tanking?
Well, Stephen Diehl, co-founder of the Center for Emerging Technology Policy and co-author of the new book Popping the Crypto Bubble, attributes the crashing market to the digital currency being rife with scams.
The saturated market of NFTs has minimal regulatory framework protecting investors and their coin.
He told MSNBC in November 2022: “Crypto exchanges don’t trade regulated financial products like stocks or bonds; they trade unregulated financial assets, which are crypto tokens.
“And these tokens are not subject to the same level of regulation as most other products in the market.
“A lot of the problems that arose out of the recent catastrophe are due to the lack of regulation of these products.”
He said of the FTX collapse: “This was one of the most credible entities in the entire crypto space. It exploded in 48 hours. I’ve never seen a week like this in markets and I look at this stuff all the time.”