It was 2020 and everyone was being forced into the digital world. This article essentially encapsulated the problem with the hype of the time: "Soon after the purchase, the NFT craze died down, liquidity plummeted, and digital collectibles became hard to sell at sky-high valuations."
Logan tweeted: "A year ago, I spent $623,000 on an NFT. Today, it’s worth essentially nothing. I’ve immortalized this mistake in 99 Originals with an exact replica helmet & outfit." (https://t.co/OzBRdQPxUKpic.twitter.com/srD2h4SgO7)
What Makes an NFT?
NFTs (Non-Fungible Tokens) are unique items that cannot be interchangeable with other NFTs like cryptocurrencies can. The perceived value of NFT-based digital art and other items lies in several factors:
- Scarcity and authenticity because the items cannot be duplicated, and you own a one-of-a-kind piece.
- Collectors' value, because it is only pricey if others also value it that way monetarily.
- A form of artistic expression and a platform to support artists, as well as make a clear boundary from copyright infringements that artists can be subject to.
Trends can cause Impulse Buying
With the NFT world trending due to media buzz, celebrity influence and speculation over its market potential (also possibly being a much-needed distraction from the Covid-addled world), irrational sale prices became prevalent. Whether as a means of fraud or simply taking advantage of the flux, companies who jumped on the band wagon clearly had much to celebrate from this windfall.
On the individual's part, whether it was FOMO (Fear of Missing Out) or simply having a cool new tech art to brag about, or a legitimate investment in the market to see where it led, pouring money into uncertain and unstable new-fangled things just bleed the wallet out. It's a painful experience for some but hopefully it will be a learning and turning point from our mistakes in finance management.
In investments, there needs to be a certain sense of discernment and prudence. Let's not give room for impulses or emotional buying, but to live with a sober and rational understanding of all things. Vault@268 is determined to store your assets for long-term, while ensuring your collectibles remain in mint condition and continue to increase in valuation. Get in touch with our sales rep to inquire about a private safe deposit box - 67377 268, vault@268.com.sg
Logan Paul's $623,000 NFT is now worth $10... What Happened?
What made youtuber Logan Paul's NFTs become worthless? (https://coincodex.com/article/22981/logan-paul-nft/)
It was 2020 and everyone was being forced into the digital world. This article essentially encapsulated the problem with the hype of the time: "Soon after the purchase, the NFT craze died down, liquidity plummeted, and digital collectibles became hard to sell at sky-high valuations."
Logan tweeted: "A year ago, I spent $623,000 on an NFT. Today, it’s worth essentially nothing. I’ve immortalized this mistake in 99 Originals with an exact replica helmet & outfit." (https://t.co/OzBRdQPxUK pic.twitter.com/srD2h4SgO7)
What Makes an NFT?
NFTs (Non-Fungible Tokens) are unique items that cannot be interchangeable with other NFTs like cryptocurrencies can. The perceived value of NFT-based digital art and other items lies in several factors:
- Scarcity and authenticity because the items cannot be duplicated, and you own a one-of-a-kind piece.
- Collectors' value, because it is only pricey if others also value it that way monetarily.
- A form of artistic expression and a platform to support artists, as well as make a clear boundary from copyright infringements that artists can be subject to.
Trends can cause Impulse Buying
With the NFT world trending due to media buzz, celebrity influence and speculation over its market potential (also possibly being a much-needed distraction from the Covid-addled world), irrational sale prices became prevalent. Whether as a means of fraud or simply taking advantage of the flux, companies who jumped on the band wagon clearly had much to celebrate from this windfall.
On the individual's part, whether it was FOMO (Fear of Missing Out) or simply having a cool new tech art to brag about, or a legitimate investment in the market to see where it led, pouring money into uncertain and unstable new-fangled things just bleed the wallet out. It's a painful experience for some but hopefully it will be a learning and turning point from our mistakes in finance management.
In investments, there needs to be a certain sense of discernment and prudence. Let's not give room for impulses or emotional buying, but to live with a sober and rational understanding of all things. Vault@268 is determined to store your assets for long-term, while ensuring your collectibles remain in mint condition and continue to increase in valuation. Get in touch with our sales rep to inquire about a private safe deposit box - 67377 268, vault@268.com.sg