One of the biggest trends of the previous year was the popularity of NFT tokens. In December, we wrote an article about the most expensive non-exchangeable tokens sold in 2021, and work was ranked first, priced at close to USD 100 million.
The former Twitter CEO and current CEO of Block (formerly Square), Jack Dorsey, created the NFT token based on his first tweet in December 2020. Several months later, the painting became the subject of a $2.9 million deal.
When it was re-listed for sale, no one offered more than $ 280 for it. Additionally, the highest bids on the most popular NFT trading platform – OpenSea – amount to about $ 10,000, a 99% decrease in value. How did this happen?
Jack Dorsey’s NFT is losing value
As the NFT market boomed in March 2021, monthly sales on OpenSea soared to nearly $150 million. The trend for non-fungible tokens had begun just two months earlier, when the Iranian cryptocurrency entrepreneur Sina Estavi purchased Dorsey’s NFT for $2.9 million.
Although the $2.9 million price tag for NFT from Dorsey’s first tweet cannot be justified, it is possible to perceive Dorsey’s first tweet as historic in nature.
A representative of the NFT trade group, Mitch Lacsamana, comments, “What is the utility of this NFT? Does Jack Dorsey take you to Silicon Valley for dinner? What is the real value proposition here? Time has shown us that this value doesn’t exist.”
The NFT was subsequently auctioned for 14,969 ethers, or about $50 million at the current exchange rate. At first, no one would bid more than $280 for an item. Estavi says “no one knows” why the stakes are so low.