The rise and fall of NFTs.

[uneng]

Each bullish season of crypto market is characterized by hype around a determined topic. A long time ago it was cloud mining services, then it has moved to NFTs and blockchain games, and now it's around AIs. It's all about the trend, and nothing about the real value of the crypto being promoted. It's actually fascinating how something priceless and useless was sold for more than 6$ million dollars...

Meawnhile, people at the bottom of this pyramid ends losing the cheap funds they have, expecting to make quick and big profit. Anyway, you can be assured this money went into someone's pockets... Where there are many losing money, there are always a few making profit.

[milewilda]

I still recall the NFT hype of few years ago. It was the most popular form of digital art then, thought it will stand the test of time probably 10 years but unfortunately today NFTs have not only faded, it has lost value. Few years ago when NFTs were making headlines, people bought them at ridiculous prices hoping to get rich quick on the long run. At some point it was sold at fund raising events which was cool.

I still recall when the internet when Justin Sun bought a banana-on-a-wall art piece for $6.2million, in his case he didn’t buy it for profit he said he bought it because the piece represented a cultural phenomenon that bridges art and the crypto community. But presently i think it’s safe NFTs don’t stand a chance to go mainstream anymore, even though they were seen as a key part of Web3 ecosystem then, it doesn’t hold no real utility to make it significant now.

I wonder if OpenSea and Doodles still generate enough revenue from NFTs anymore because now everyone cares more about AI, ChatGPT than NFTs.

Some people been saying or lets say about using up our own common sense in regarding with those ridiculous NFT art prices on which this one basically involves with that money laundering. Ex. with that banana bought by Sun then you could definitely say that who would be the fuck that eating up that banana that cost up millions? or even into those NFT pixelated images do have those ridiculous millions of dollars in value.
When it comes into trend and hype then it did create out that kind of bubble but on the moment that the market being saturated or being flooded out by lots of NFT's then expect that it will burst that bubble and it did happen. Tons of those people who had been collecting those expensive nft's ended up on having that huge loses basing up on what they had invested. For those who do able to get out at the right time then they are the ones who do made out such huge money. Speaking for Opensea or any other platforms out there, then it will be just that normal that they will be trying out to make up such switch up on which it will be basing up according into the trend. In speaking of business then they would be needing to jump from one trend to another if they would be needing up to sustain on which its just that a normal thing for a business to do. If a certain trend is over then trying out to get grasps with the new one and the business continues as simple as that.

[DeathAngel]

It was a passing phase, a fad. NFT artists & creators made a lot of money. Lots of people got fleeced for a lot of money that they will never make back. NFTs are useless, they offer nothing, it’s just a massive scam. Similar to the ICO craze of 2017, NFTs were the trap of the last bull run. Be careful & don’t be a sheep.

[dumpsterhawk]

This is wrong. A digital image can create real value. Just because you don't value it, that doesn't mean someone else doesn't. Just because you can create a copy of the picture, you still do not own the NFT. You can't copy the NFT, no matter what you do. It would be like saying that you can copy dogecoin by making another chain with the same name and picture and then give yourself coins. You have coins called dogecoin in that case, but they are not the real thing. 

Not if it's an image obtained from the Web. I mean, "copy and paste" JPEGs which are submitted by anyone as a "unique NFT" on the Blockchain. Real value comes from creative digital art or unique masterpieces not found anywhere else. NFTs with limited releases (supply) meeting such criteria, would surely become valuable in the long term.

Despite NFTs' potential to transform the collectibles industry, the hype is quickly fading away as people move on to the next big thing. These days it's all about "meme" coins, AI-based tokens, and "shitcoins" (like XRP). The market is so speculative these days, that any "garbage" can quickly gain traction and make a few early holders rich in the process. Utility-driven projects often see a chance for success (except Bitcoin). I hope things change in the future and trends like NFTs and ICOs make a comeback. Crypto land is full of surprises, so expect the unexpected.

The thing is, it can still have value even if it is a widely used image. It is not that simple. The NFT that I create is always going to be unique on the blockchain compared to the NFT you create, even if you use the same image as me. That is the whole point of this technology. Even when things are the same, they can be different from each other.  I'm not saying that this is likely, but I am saying that the valuation thing is possible and that it should be kept in mind. I mean there were probably some examples where some NFTs had value not because of the art that they had, but because of who created them. The extreme example of this is someone famous creating an NFT series with a generic picture. I can totally see this having value, even if it is wrong.

It was a passing phase, a fad. NFT artists & creators made a lot of money. Lots of people got fleeced for a lot of money that they will never make back. NFTs are useless, they offer nothing, it’s just a massive scam. Similar to the ICO craze of 2017, NFTs were the trap of the last bull run. Be careful & don’t be a sheep.

NFTs are not useless, it is a great technology and is widely used in DeFi. Don't confuse image only NFTs with the actual goals behind the technology.

[Josefjix]

Crypto space had come with a lot of hypes that comes and go and so if you are old in the industry you wouldn't be surprised by any downfall of any new innovations that comes up. NFT period came in a way that there was so many creators of different unique designs with little buyers, there were lots of demand but less supply. Everyone wants to sell off their own NFT by creating tons of designs but no one was willing to buy. That was the downfall of NFT.

[zeuner]

The main problem of that failure is that people have used NFTs for the wrong purposes. The technology behind NFTs has many potential applications, and digital art is not the intended avenue and it does not even bring any benefits to that.

Who knows. The thing is that almost no one even tried to explore possible benefits. The vast majority of art-related NFT efforts assumed that throwing NFT on some random piece of of art will magically create something like ownership, fully ignoring that, no matter whether you're talking about fungible or non-fungible, a blockchain won't solve your counterparty risks.

[dumpsterhawk]

The main problem of that failure is that people have used NFTs for the wrong purposes. The technology behind NFTs has many potential applications, and digital art is not the intended avenue and it does not even bring any benefits to that.

Who knows. The thing is that almost no one even tried to explore possible benefits. The vast majority of art-related NFT efforts assumed that throwing NFT on some random piece of of art will magically create something like ownership, fully ignoring that, no matter whether you're talking about fungible or non-fungible, a blockchain won't solve your counterparty risks.

But they did, you need to look around. Some DeFi projects use this in their staking programs. You stake tokens and get an NFT, you can then use the NFT to change the ownership from one address to another without having to unstake. There is also some stuff in fractional ownership and RWA. Research deeper and you will find it

[gunhell16]

I still recall the NFT hype of few years ago. It was the most popular form of digital art then, thought it will stand the test of time probably 10 years but unfortunately today NFTs have not only faded, it has lost value. Few years ago when NFTs were making headlines, people bought them at ridiculous prices hoping to get rich quick on the long run. At some point it was sold at fund raising events which was cool.

I still recall when the internet when Justin Sun bought a banana-on-a-wall art piece for $6.2million, in his case he didn’t buy it for profit he said he bought it because the piece represented a cultural phenomenon that bridges art and the crypto community. But presently i think it’s safe NFTs don’t stand a chance to go mainstream anymore, even though they were seen as a key part of Web3 ecosystem then, it doesn’t hold no real utility to make it significant now.

I wonder if OpenSea and Doodles still generate enough revenue from NFTs anymore because now everyone cares more about AI, ChatGPT than NFTs.

I remember the NFT a few years ago when the price of each one went up, especially during the popularity of axie infinity, NFT's were very expensive, then the NFT that Justin Sun bought was very expensive, could you imagine that, how many generations of my family can live on that price.

Although it cannot be denied that this NFT season has been very quiet, but as others here are saying, there is probably a short season when this NFT will suddenly make noise at a time when the community here is not expecting it. And in my opinion, it also seems like it is really part of the crypto space.

[shinratensei_]

Who knows. The thing is that almost no one even tried to explore possible benefits. The vast majority of art-related NFT efforts assumed that throwing NFT on some random piece of of art will magically create something like ownership, fully ignoring that, no matter whether you're talking about fungible or non-fungible, a blockchain won't solve your counterparty risks.

Some are already exploring the benefits though, through ownership and airdrop identification, most of the NFT that still has value also has underlying use, to access certain community and to be eligible into a project.
Almost all of NFT which value purely derived from the value of the "art" are already going to zero.

There are also ticketing and so on but still on the way.
Even there are many project using NFT to identify pass for validator. The possibilities are still being explored as of now.

[bitLeap]

People are not yet done with the volatility (pump and dump) of altcoins talk more of NFT. The trend was very much serious the year it first got introduced, after which, it's just a very few people that are paying attention to it. If it was really profitable, then the trend will not die off.

The NFT sensation seems to be over, especially now that sophisticated AI technology can easily print thousands of better images. The challenges in the NFT industry are increasingly unavoidable, even now some famous NFTs such as BAYC, Pudgy Penguins, Doodles, etc. are priced very poorly to maintain.

[justdimin]

People are not yet done with the volatility (pump and dump) of altcoins talk more of NFT. The trend was very much serious the year it first got introduced, after which, it's just a very few people that are paying attention to it. If it was really profitable, then the trend will not die off.

The NFT sensation seems to be over, especially now that sophisticated AI technology can easily print thousands of better images. The challenges in the NFT industry are increasingly unavoidable, even now some famous NFTs such as BAYC, Pudgy Penguins, Doodles, etc. are priced very poorly to maintain.

Not exactly what AI can do at the moment, not saying it won't, just saying not at the moment. Because we are talking about a code that basically does the same thing, with small changes, and AI can't do that yet, because it can't even create the same character twice, it would have some small changes. You can make the best looking AI ever, and even openAI, who spent 100+ billion, can't make the same character twice.

Here, we are talking about the same ape, with different clothes, different teeth, different hat, different whatever, but the base is the same. So it's tough, could it be done? You could make it done, but you still need coding, to make sure the rarity situation of NFT's which made them famous, is possible. I am pretty sure it's tough still, and nowadays it is not making money, so it is not worth it.

[dumpsterhawk]

People are not yet done with the volatility (pump and dump) of altcoins talk more of NFT. The trend was very much serious the year it first got introduced, after which, it's just a very few people that are paying attention to it. If it was really profitable, then the trend will not die off.

The NFT sensation seems to be over, especially now that sophisticated AI technology can easily print thousands of better images. The challenges in the NFT industry are increasingly unavoidable, even now some famous NFTs such as BAYC, Pudgy Penguins, Doodles, etc. are priced very poorly to maintain.

AI has no relevance to this, you are mistaken. It does not take long for a designer to make a complete NFT collection, and there are so many designers around hoping to earn some crypto. Also, I would strongly disagree with your claim that AI can print better images. Most stuff generated by AI is terrible. Anyone could already create copies or similar quality pictures like BAYC or the Penguins. What about it? That won't give it value. There are so many copies of any popular character. You need to learn what gives it value.

[doubletheprof]

Honestly NFTS were just a bubble for "investors"

[alani123]

NFTs aren't all that dead yet. Some certain communities did well. But it goes to show that 99% of the projects are way down from initial price that you should never invest long term at a period of boom.

Most NFTs were shitcoins and their teams had no intention to work in the project no matter how much they got paid. The same is true for the majority of  projects many of which raised millions and ended up amounting to nothing. Now there's only a handful which is a combimation of luck and determination but still this handful could anyday lead to another boom because people tend to have survivorship bias.

[MArsland]

NFTs only did well because people thought digital art will be a big deal in the future but here we are a couple of years later and people still prefer hard, physical art than the digital ones. Afaik, no one really care much about the fact that it's digital and being live on the blockchain.

I wasn't intrigued by NFTs and still not interested in them because bad actors took advantage of the space and did a shit ton of NFT mints that no one cares about.

IMO in the end physical artwork is still the winner until now. Maybe in the year of the emergence of NFT it had shifted physical artwork but now we realize that the real artwork is where human intervention is able to create a distinctive feature. NFT now people without skills can make it just using a special prompt but in the real world they can't make anything, I guarantee they can't even paint.

[Abiky]

It was a passing phase, a fad. NFT artists & creators made a lot of money. Lots of people got fleeced for a lot of money that they will never make back. NFTs are useless, they offer nothing, it’s just a massive scam. Similar to the ICO craze of 2017, NFTs were the trap of the last bull run. Be careful & don’t be a sheep.

We can say the same about "meme" coins. Yet, people continue to buy them with the hopes of getting rich quick. Demand for NFTs has declined, but not to a point where it has completely disappeared. Consider how 1-2 years ago, NFTs gained traction on the Bitcoin blockchain through "Ordinals inscriptions". Some people are still buying and holding these thinking they will turn a profit in the long run.

What will ultimately "kill" NFTs will be increased regulatory scrutiny. That's what led to the downfall of ICOs back in 2017. Once governments start to regulate NFTs, it will be game over for the industry for good. Perhaps, NFT marketplaces will be forced to comply with KYC/AML rules to help track down NFT creators (and avoid money laundering/tax evasion)? You can bet popular platforms like OpenSea and Magic Eden will do this. Especially when they're not truly-decentralized. It's an uncertain world out there, so we should expect the worse.

[passwordnow]

So this thread popped again and one thing that I've seen a day ago was about the NFT called 'Beeple'. It was sold for $69M on 2021 and right now, you know how much it costs? $20k.



I guess that the other hyped NFTs from before that were bought expensively also dropped in prices. I think one of the investors and buyers of it is one of the Paul brothers.

[dumpsterhawk]

So this thread popped again and one thing that I've seen a day ago was about the NFT called 'Beeple'. It was sold for $69M on 2021 and right now, you know how much it costs? $20k.



I guess that the other hyped NFTs from before that were bought expensively also dropped in prices. I think one of the investors and buyers of it is one of the Paul brothers.

A lot of projects are down 90% or more from their ATH, so it is not just an issue with NFT art as much as I don't like it. It is an overall trend of devaluation of different things, because everything back then was hyper inflated. The less useful things that hold less real value are going to experience higher reductions. Still, we are only judging this from the outside with limited information. Who is to say that somebody did not conduct some very successful money laundering, tax write off or something else entirely on this loss?

[passwordnow]

So this thread popped again and one thing that I've seen a day ago was about the NFT called 'Beeple'. It was sold for $69M on 2021 and right now, you know how much it costs? $20k.



I guess that the other hyped NFTs from before that were bought expensively also dropped in prices. I think one of the investors and buyers of it is one of the Paul brothers.

A lot of projects are down 90% or more from their ATH, so it is not just an issue with NFT art as much as I don't like it. It is an overall trend of devaluation of different things, because everything back then was hyper inflated. The less useful things that hold less real value are going to experience higher reductions. Still, we are only judging this from the outside with limited information. Who is to say that somebody did not conduct some very successful money laundering, tax write off or something else entirely on this loss?

It is a downtrend for most of them and something that's down 90% from the peak that it has got, I don't think that it will ever recover anymore. Things got hyperinflated before due to the fact that many have been hyped by the NFT market. From the arts, to games and other collectibles. People have monetized everything at that point and that's why all of the people that have entered there empty handed got money when they exit. And those that don't have a clear plan of exit, they're now suffering in losses and you're right that it probably have been a way for money laundering.

[Abiky]

A lot of projects are down 90% or more from their ATH, so it is not just an issue with NFT art as much as I don't like it. It is an overall trend of devaluation of different things, because everything back then was hyper inflated. The less useful things that hold less real value are going to experience higher reductions. Still, we are only judging this from the outside with limited information. Who is to say that somebody did not conduct some very successful money laundering, tax write off or something else entirely on this loss?

Well, most NFTs were speculative driven only by hype. Only a few were otherwise. Because of this, demand for NFTs have fallen sharply. But scammers, money launderers, and tax evaders took advantage of the situation and made fortunes along the way. If NFTs were to make a comeback, it would only be a result of regulators getting their hands on the industry.

Like I've said, regulators could force popular NFT marketplaces (eg: OpenSea, Magic Eden) to comply with KYC/AML. This will lead to increased centralization and limited privacy, but it will give NFTs a much-needed boost. Especially under the eyes of VCs, and institutional investors. I wouldn't say it's "game over" for NFTs yet. We'll see what happens in the long run.