Probably most people who visit our website are disinclined to invest in these blockchain related assets. Still, NFTs frequently show up in the news, and I can’t resist sharing some stories. After all, the image here (CryptoPunk Zombie) sold in September 2021 for $3.9M. Wow.
More on that later. Let’s start with this story, from Paul Vigna in the Wall Street Journal, May 3rd, 2022:
An NFT of the first tweet from Twitter Inc. co-founder Jack Dorsey sold in March 2021 for $2.9 million to Sina Estavi, the chief executive of Malaysia-based blockchain company Bridge Oracle. Earlier this year, Mr. Estavi put the NFT up for auction. He didn’t receive any bids above $14,000, which he didn’t accept. Mr. Estavi said failure of the auction wasn’t a sign that the market is deteriorating, but was just a normal fluctuation that could occur in any market. The NFT market is one that is still developing, he said, and it is impossible to predict how it will look in a few years.
That’s a 99.5% drop in value. But he will never regret it. Oops.
Another NFT buyer purchased a Snoop Dog curated NFT, titled “Doggy #4292,” in early April for about $32,000 worth of the cryptocurrency ether. The NFT, an image of a green-skinned astronaut standing on what looks like a Hollywood Walk of Fame star, is now up for auction, with an asking price of $25.5 million. The highest current bid is for 0.0743 ether—about $210.
Did you have to read that twice? A $210 bid on a $32,000 last traded value, but the seller is asking $25.5M.
Still, money is changing hands. It may be reassuring, or horrifying, that there’s real cash moving around NFTs, as Bloomberg’s Muyao Shen pointed out in a May 3, 2022 article:
Crypto lender Nexo says it has issued one of the largest loans backed by NFTs in crypto’s history and that two rare CryptoPunks Zombies were used as collateral. Nexo said the 1,200 Ether loan, worth more than $3.3 million, was issued to an unnamed borrower who put up the Zombie NFTs as collateral. The 60-day loan carries an annualized interest rate of 21%. The transaction shows how the financialization of NFTs has gained in sophistication since nonfungible tokens surged in crypto markets last year.
Do you think our real estate fund should sell block chain journaled digital photos of our land tracts as NFTs? Could be hugely profitable. Nah, probably we’ll just stick to the business we know.
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