NFT Fashion Continues Fast
Trends occur in cryptoassets during Bitcoin bullish seasons. For example, privacy coins and ICOs were very fashionable in the 2016-17 Season.
As Bitcoin skyrocketed from $1,000 to $20,000 in 2017, a group of tech influencers fell into privacy hysteria. They claimed that the most important purpose of cryptocurrencies is to hide from the government. For this purpose, they issue new 'privacy coins', which they claim that no one can find your identity or see your financial transactions.
Investors almost attacked these coins. Those who invested early in privacy coins and got rich sprang up in Silicon Valley. 10s of Privacy coins were released and sold in a scramble.
At that time, this friend of yours was writing again. “The main concern of the investor is not hiding from the state and not paying taxes. The main problem is that modern unlimited currencies depreciate with constant inflation. Interest in privacy coins may be temporary,” I was explaining.
At the point we have reached today, the hysteria of secrecy has already ended. The vast majority of the numerous privacy cryptocurrencies that have been mined are gone. Most of the new investors don't even know the ones who continue their lives. Moreover, it turned out that most of these coins did not provide the full privacy they claimed.
A very similar situation has happened for ICOs. In classical stock exchanges, the first time that companies issue their own shares to the stock market, that is, 'public offering', is called IPO in English. Entrepreneurs carrying this to cryptocurrencies started the ICO trend.
Shares of companies that are already established in IPOs are sold. In ICOs, the tokens issued for projects that could get more ideas were sold on simple websites, not even on exchanges.
ICOs based on new tokens, which are usually issued on Ethereum, have become a fashion many times greater than privacy coins. Maybe thousands of ICOs have been made. ICOs have been held, raising $10 million, $100 million, or even billions of dollars.
So what happened after all? When Bitcoin entered the decline season at the beginning of 2018, the coins and tokens that were purchased at high prices from ICOs during the year became almost garbage. Many projects have not been able to produce a real blockchain product with the funds they have collected. In some countries, ICOs have also been prosecuted.
The 2020-21 Season, of course, brought its own fashions. ICOs have turned into IEOs on crypto exchanges, launchpads and even IGOs in games. But the real big fashions have emerged in De-Fi, metaverse, win-play (P2E) games etc.
NFT can be defined as a unique blockchain record. NFTs will be very, very important when blockchains take over the world and most of the economy starts working on blockchains. For example, your identity card, your title deed or insurance policy, etc. will be able to rapidly circulate all digital blockchain networks as NFT. This will bring great resource savings, speed and efficiency to the economy.
However, the NFT craze we are in right now mostly covers works of art or records with collectible value. Seeing that NFTs found buyers for millions of dollars, especially in the times when Bitcoin was on the rise, 1000s of artists from all fields began to issue numerous NFTs, even though they did not know anything about the crypto world.
Just like in ICOs 5-6 years ago, investors are crushing each other to buy these NFTs. It takes expertise to distinguish between NFTs, which are truly art or collectibles, and completely garbage digital records. However, especially small investors who do not have such expertise or do not receive advice on this subject still attack NFTs.
If we look at past experiences, it is necessary to weigh up whether NFTs really have value in terms of art or collection. It is important to remember that NFTs, like all trendy altcoins, can suffer huge losses in a Bitcoin decline season that has perhaps already begun. Some unpleasant examples are already starting to arrive:
Twitter founder Jack Dorsey sold his first tweet as NFT for $2.9 million last year and donated this proceeds to the fight against Covid in Africa.
According to the news of Coindesk, the buyer of this NFT, an investor named Sina Estavi, put the 'artifact' back on sale for $48 million last week. In the process that ended on Wednesday, the highest bid for the NFT of Jack Dorsey's first tweet in the world was only $ 280!…
