Hello to you all, there’s been plenty happening in crypto recently, including some doom-laden major media headlines relishing in the downfall of NFTs.
But are the haters correct to claim that most NFTs are worthless, and were they right all along about our favorite JPEGs?
Read on to get the real picture.
A research report by dappGambl has been published, and it makes the eye-catching claim that 95% of all NFTs are now worthless.
This finding was picked up by mainstream media outlets including Rolling Stone (which itself featured a Bored Ape on its cover back in 2021), and attracted attention from gloating commenters who, for whatever particular reason, really don’t like NFTs.
But is the claim true? Are 95% of NFTs actually worthless?
The answer to that is yes, around 95% worthless is probably accurate, but there are two critical factors that the haters are missing:
Huge numbers of obscure and unknown NFTs have been minted.
And the key point:
Most NFTs were worthless at the peak of the bull market.
A 95% worthless scenario is exactly what you’d expect in any easy-to-access creative format, and particularly when newcomers are rushing in.
In that situation, the majority of what’s made will get no attention while a small slice becomes valuable, and the best course of action is to identify where the value lies, and if you’re buying, then buy the 5%.
Collections like Bored Apes and CryptoPunks are down a lot from their peaks, but even after crashing are still trading for tens of thousands of dollars, having cost about $200 on launch in the case of Bored Apes, or being distributed for free in the case of CryptoPunks.
Or to put all this another way: 95% of bands never sell an album, 95% of paintings are never bought, 95% of novels remain unknown, 95% of new restaurants… ok, you get the picture.
