There’s an old saying on Wall Street that goes “If your taxi driver starts giving you stock tips, then it’s time to sell.”
In the ICO explosion of 2017, some 800 ICOs have been offered, raising a total of about $20 billion. When the bubble finally popped in 2017, the “market cap” of all crypto fell over $700B, an 85% drop from its peak in January 2017.
Until 2021, NFTs were a little-known, niche segment in the crypto industry.
At the start of 2021, total global NFT sales averaged around 2,000 per day for a total value of a few hundred thousand dollars.
However, at the market’s peak in August 2021, over 200,000 NFT sales were taking place each day, with the total value of sales at one point briefly surpassing $400M.
Now, active NFT wallets appear to have dropped 88% — from 119,000 to 14,000 — since September last year, and individual sales have dropped from a daily average of 225,000 to 19,000, a precipitous 92%. Worse, buyers are dwarfed by sellers by something like five to one.
Charlie Lee -Founder of Litecoin Foundation- previously expressed some bold criticism over the NFT industry, claiming in February that NFTs have “zero cost” of creation. “Because of the near zero cost to create another NFT, the market will eventually be flooded with NFTs from artists trying to cash in on this craze. Supply will overwhelm demand and the prices will eventually crash,” the creator of Litecoin predicted.
The ICO bubble in 2017 didn’t bring the end of cryptos. On the contrary, the market continued to grow over the years. Our industry will become healthier as users become more conscious of NFTs, projects, and creatures.
There are the more recent groupings of NFTs: “Blue chip”, such as Bored Ape Yacht Club, Doodles, Cryptopunks, and Moonbirds, which form part of collections conferring some kind of exclusive privilege onto the holder like access to events, intellectual property, more tokens, and messaging boards. These behave more like common stock, or digital assets like Bitcoin or Ethereum.
Follow the “Blue chip” not “White Rabbit”