Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
In March 2021, Jack Dorsey, co-founder of Twitter, captured attention by auctioning his inaugural tweet as a non-fungible token (NFT) for an impressive $2.9 million. The NFT, which signifies a digital ownership certificate, was purchased by Sina Estavi, the CEO of Bridge Oracle, who aimed to resell it for $48 million, with half of the earnings designated for charitable purposes.
Since that time, the value of the NFT has plummeted. As of July 20, the highest offer for the NFT is a mere $3.82, according to OpenSea, one of the leading NFT marketplaces. This significant drop indicates that many traders and collectors believe the NFT is worth considerably less than its initial sale price.
The steep decline in value not only reflects trader sentiment but also underscores the inherent volatility present in the NFT market. Much like cryptocurrencies, NFTs represent a relatively new asset category, and their worth often hinges on speculation. As a result, NFT prices can vary widely, sometimes soaring to millions of dollars in brief timeframes.
In contrast, Dorsey’s first tweet as an NFT, a straightforward screenshot of his original message “just setting up my twttr,” has contributed to the reduced perception of value. Although it was minted on the Valuable platform, a blockchain-based social media site, and sold on OpenSea, the actual tweet remains under Dorsey’s ownership. Thus, the NFT holder technically possesses only the digital ownership certificate, while the tweet itself stays with Dorsey. This understanding may have influenced the perceived value of the NFT.
Related Posts
Due to the recent drop in bids, Estavi’s intention to donate half of the proceeds to charity through the GiveDirectly organization may face significant limitations, as the current bids are only in cents.
This sharp decline in the value of Dorsey’s NFT reflects the broader condition of the NFT market, which experienced a decrease in trading activity following the downturn in cryptocurrency prices in 2022. Notable collections such as CryptoPunks and Bored Ape Yacht Club (BAYC) saw considerable reductions in their floor prices.
The floor price denotes the lowest price at which an NFT item can be sold in the marketplace. For example, the BAYC floor price fell by over 90% from its peak of $600,000 during the 2021 Bull Run, indicating the market’s instability and vulnerability to swift changes.
In summary, Jack Dorsey’s first tweet NFT stands as a clear illustration of the unpredictable nature of the NFT market. While NFTs continue to attract interest and intrigue, they remain a speculative asset class, and their values can be prone to significant fluctuations based on various influences. As the market evolves, a clearer understanding of the long-term viability and worth of NFTs may develop.
The post NFT Market Crashes: Jack Dorsey’s First Tweet Now Worth Just $3.82 appeared first on BitcoinWorld.
