Whatever Happened to NFTs? Are they still worth an investment?
Over the past year few years, the world has seen an explosion in the popularity of NFTs or Non-Fungible Tokens. These digital assets took the art world by storm, with high-profile sales of NFTs reaching millions of dollars. But now, the excitement seems to have cooled off.
NFTs are unique digital assets that are verified on a blockchain network, making them one-of-a-kind and impossible to replicate. This makes them incredibly valuable to collectors and investors, as they can prove ownership of a piece of digital art or other content.
Personally, I own a few because I like the artwork and have talked to the artists. I dabbled in buying and selling a few from the more collectible projects but barely made my money back (or lost a few dollars trying to ride the wave during the pandemic). One of the biggest draws for me is the sense of community. From live Twitter Spaces to thriving Discord groups, there’s always something happening. Although I’ve been part of a few ‘rug-pulls’ too, where after launch and a quick explosion of sales and activity, the owners delete their accounts and move on to the next one, leaving the NFT-holders high and dry (and very salty).
In fact, after a bit of a sabbatical from NFTs and cryptocurrencies, I watched the ‘value’ of some of the coins go down, which meant the cost of some of the collections I’ve been watching for a while dipped too. One of my favourites, Mindfolk was at 175 Solana at launch ($3,500 USD at the current price, although that’s gone down too), and is now listed at about 3 Solana ($60 USD).
One of the most notable NFT sales of the past year was the sale of Beeple’s digital artwork, “Everydays: The First 5000 Days” for a staggering $69 million at Christie’s auction house. This sale brought NFTs into the mainstream and showed the potential for digital art to be valued just as highly as traditional art forms.
But it’s not just art that’s being sold as NFTs. Musicians, athletes, and even social media influencers are getting in on the action, selling everything from exclusive music and merchandise to tweets and memes. The NBA has also launched its own NFT platform, NBA Top Shot, which allows fans to buy, sell, and trade officially licensed NBA collectibles.
One of the most recognised collections is OkayBears, an NFT project that features 10,000 unique cartoon bear characters, each with its own unique traits, personalities, and accessories. These bears are not only collectible digital assets but also come with real-world benefits such as access to exclusive events, merchandise, and rewards.
The project was launched on August 22, 2021, and quickly gained popularity among NFT enthusiasts and collectors. The team behind OkayBears includes experienced developers, designers, and marketers, who have worked to create a fun and engaging community around the project.
One of the unique aspects of OkayBears is its focus on building a strong and supportive community. The project features a Discord server where collectors can chat, share their collections, and participate in exclusive events and giveaways. The team also hosts regular AMAs (Ask Me Anything) sessions, where members of the community can ask questions and provide feedback on the project.
In addition to the community-building aspect, OkayBears also offers a variety of real-world benefits to its collectors. For example, collectors can access exclusive merchandise, such as t-shirts and hats featuring their favorite bears. They also have access to exclusive events, such as meetups and parties, where they can connect with other collectors and the OkayBears team.
As with many NFT projects, OkayBears has also seen significant appreciation in value since its launch. The initial mint price for a single OkayBear was 0.05 ETH, but the current floor price (the lowest price at which an OkayBear can be purchased) is significantly higher at around 0.3 ETH at the time of writing.
Its focus on community-building and strong design has helped it stand out in a crowded market and attract a dedicated following.
GM. pic.twitter.com/nUi6hNePIS— Okay Bears (@okaybears) March 15, 2023
However, the rise of NFTs hasn’t been without controversy. Critics argue that the market is a bubble that will eventually burst and that NFTs are contributing to the worsening economic crisis. They argue that the high prices being paid for NFTs are a sign of a speculative bubble, much like the dot-com bubble of the late 90s and the housing bubble of the 2000s.
Despite the controversy, the market for NFTs continues to grow. In fact, the first half of 2021 saw over $2 billion in NFT sales, a massive increase from the previous year. And with more and more creators and influencers jumping on the bandwagon, it seems unlikely that the market will slow down anytime soon.
So what does the future hold for NFTs? While it’s impossible to predict the future, it seems likely that the market will continue to grow, albeit at a slower pace. As more and more people become aware of NFTs and their potential, the market will become more stable and less prone to speculative bubbles.
Additionally, we may see more use cases for NFTs beyond art and collectibles. For example, NFTs could be used to verify ownership of real-world assets like property or even cars. This could revolutionize the way we think about ownership and transfer of assets.
One of the main criticisms of NFTs is that their value can be highly speculative and may not necessarily be based on underlying fundamentals. This means that prices can fluctuate rapidly, and it can be difficult to predict whether an NFT will appreciate or depreciate in value.
Additionally, there is currently no regulatory oversight of the NFT market, which means that there is a risk of fraud or scams. Some projects may be scams, and it can be challenging to distinguish between legitimate and fraudulent offerings.
It’s also important to consider your own personal financial situation and investment goals before investing in NFTs. It’s generally recommended that you only invest money that you can afford to lose and that you diversify your investments to manage risk.
NFTs can be a potentially lucrative investment, but there are risks involved. It’s important to do your research, understand the market, and consider your own personal financial situation before investing in NFTs. If you decide to invest, it’s important to exercise caution and be aware of the potential risks involved.
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