In a recent report issued by the crypto gaming platform dappGambl, it has come to light that a significant number of collections featuring NFTs (non-fungible tokens), the blockchain-based digital assets, now hold a market capitalization perilously close to zero.
DappGambl conducted a comprehensive analysis of 73,257 NFT collections, encompassing an eclectic array of digital artifacts, from zombified simians to endearing pixelated avatars and everything in between. The unequivocal verdict from dappGambl was that the "overwhelming majority of NFTs lack intrinsic value." Astonishingly, out of the collections scrutinized, a staggering 69,795 were found to possess a market capitalization hovering near zero Ether, one of the top ten cryptocurrencies.
This disconcerting revelation implies that a whopping 95% of NFT collectors are currently holding assets devoid of any substantial value. DappGambl, reflecting on these disheartening figures, extrapolated that this could potentially encompass more than 23 million individuals whose investments have now been rendered worthless.
NFTs initially surged in popularity due to their distinctiveness, setting them apart from conventional cryptocurrencies like Bitcoin and Ether. Possessing an NFT meant owning a digitally exclusive asset, the ownership of which could be unequivocally verified. Many NFT enthusiasts prophesied that this innovation would revolutionize fields such as art, fan memorabilia, music, gaming, and more. These tokens could be traded repeatedly, with some fetching bids reaching into the millions of dollars.
The NFT market experienced a bullish streak in 2021, with the highlight being the sale of "Everydays: The First 5000 Days" by Beeple—a vivid collage comprising around 5,000 images—for an astounding USD 69.3 million.
The NFT craze transcended the confines of the crypto realm, as even social media behemoth Meta endeavored to popularize NFTs, which they dubbed "digital collectibles," across their platforms. Meanwhile, payment industry giant Visa ventured into NFT territory by purchasing a "CryptoPunk" NFT for USD 150,000, seeking to gain a deeper understanding of the technology and its user base. Notably, several Hollywood celebrities either launched their own NFT collections or vocally endorsed them.
DappGambl issued a cautionary note in its report, stating, "This stark reality should serve as a somber reminder amid the exuberance that has often surrounded the NFT space. In the midst of stories about digital artworks fetching millions and tales of overnight success, it's easy to overlook the lurking pitfalls and potential losses."
However, some exceptionally popular NFT collections, such as the 'Bored Ape Yacht Club' and 'Mutant Ape Yacht Club,' centered around stylized simian visages, still maintain market capitalizations well above the USD 100 million mark, as reported by CoinMarketCap.
Decline in New Frontline Jobs in India in FY23 Due to Macroeconomic Challenges: Report
Thailand Expects USD 5-Bln Investment from Tech Giants Tesla, Google, and Microsoft, says PM
