The Fate of NFTs: Once High, Now Priceless: Okezone Techno

JAKARTA – NFTs (Non-Funible Token) has caused a stir in the world during the Covid-19 pandemic from 2021 to 2022. This NFT is a digital asset, a precious object with a value that cannot be exchanged. Unfortunately, the popularity of NFTs appears to be coming to an end. Many people have lost fortunes investing in NFTs.

In 2014, Kevin McCoy created Quantum, the first non-fungible token (NFT), ushering in the NFT era. However, NFTs only became known to the public in 2017 and became popular in 2021. In their heyday, many original NFT collections began to appear on the Ethereum blockchain.

At the time, NFT artwork sales peaked at nearly US$15 million per month or the equivalent of IDR 240 billion, with the most expensive NFT reaching a price of IDR 91.8 million US dollars, or the equivalent of IDR 1.4 trillion. Following the peak trend of the time, people began investing in any NFT they could find.

There are two reasons that drive people to buy NFTs. Those who have business reasons will invest in reselling the NFTs they own to make a profit.

Meanwhile, there are also those who buy NFTs just for fun. They don’t care about the declining sales value of the NFT, but rather the right to own the original item.

Reporting from dappGamblOn Tuesday (10/03/2023), as many as 69,795 of the 73,257 NFT collections found had zero capitalization in Ether. This figure shows that 95% of worthless NFT collections representing over 23 million investors worldwide are losing money. Even these stories of selling digital art that made it an instant success are useless because the market is full of pitfalls and potential losses.

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Who benefits from the NFT craze?

So far, CryptoPunks account for five of the ten most expensive NFT sales. The total collection could reach US$61 million, or IDR 9.1 trillion. Many celebrities are looking to purchase NFTs in hopes of selling them for a profit in the future.

The company Bored Ape Yacht Club has also managed to sell many of its NFTs at exorbitant prices. Most of the winners of this madness are the creators and sellers of the collections themselves.

While some buyers and retailers profited from their deals, most of the big winners sold off their assets before the bottom fell out at the end of 2022.

The decline in the level of public interest in NFTs was also followed by the end of the lockdown due to the Covid-19 pandemic. The virality of the NFT world is like a side effect of the boredom of those who have been confined to their homes in recent years. (Taja Aurora Bianca)

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