NFTs are by no means a new trend in the crypto industry, they have been here for a couple of years now, but they seem to have picked up full steam this year with a lot more people taking interest. We’ve seen some of the biggest names like Gary Vee become big advocates for the power of NFT’s and everyone from footballers to movie stars and artists release NFT’s. It has been a most rapid ascension for the industry as we see NFTs selling for hundreds of millions of dollars and some valued at billions. Long forgotten NFTs like EtherRocks that have been there since 2017 are making comebacks and now have a floor price of over $120k. We also saw Beeple sell his monumental “Everydays - The First 5000 Days” for over $69 million with many more going for several millions. CryptoPunks have gotten to OG status in the NFT space and we’ve seen many others like Bored Apes, Penguins, PolyPunks and a lot of others grow to be regarded as valuable investments. I have followed the NFTs market with interest over the years but I will be the first to confess I only recently began collecting NFTs for myself.
First of all the NFT run right now in some ways reminds me of Defi summer 2020 where we saw so many projects literally launch and pull crazy 10 to 20x runs. While many projects with solid potentials did big things during the run, many scams also blossomed and when the run ended many were left holding dead bags. The NFT market is in its boom stage and so many works are selling for ludicrous amounts that are in my honest opinion unjustifiable. Like Defi summer ended on a not-so-good note with many projects, I think we will see something similar with NFTs also. While the floor prices go up, the floor prices are only prices that people can buy at. You also need people to buy it though, when there are no buyers the NFTs just stay there with the absurd prices the owners bought it at but with no one to buy it of them.
Make no mistakes however, buying NFTs are fun and in a way makes you feel better than buying altcoins. I began buying NFTs last week and under 24 hours of my exposure to Opensea I had bought 4 NFTs and I was spending lots of hours a day on Opensea browsing through the NFTs there. Buying NFTs is a very addictive game and I believe it will bring in more people to crypto than even Defi did. The reason for this belief is actually simple, Defi could be said to be a bit complex for noobs. The DApps are complicated and sometimes unusable and the concepts can’t be easily understood by anyone who hasn’t been into crypto for a while. But with NFTs its basically just buying artworks you love and the love for Art is transcending and will appeal to more people than the “Future of finance” will.
While I believe we will make a lot of money in the short term flipping NFTs like a lot of people have done so far. It must also be said that the NFT game can be very addictive and that will get a lot of people burnt when the hype dies down a bit. The NFTs growth will continue but at some point in my opinion it won’t be as profound as it is right now. In the meantime before we get to that crescendo, I will keep spending insane amounts of time on Opensea and keep looking to make life changing money through these artworks, some of them beautiful pieces and some of them in my honest opinion hideous works that shouldn’t have seen the light of day. Like the title said however, these are just my thoughts, merely that and nothing else.
