In a recent episode of The Simpsons, Homer tries to get rich quick by turning his son, Bart, and himself into NFTs (Non-Fungible Tokens). But a floating pizza cat breaks the news that “the NFT craze is over.” It’s a funny story about the crypto world, and it makes us wonder: Are NFTs still a big deal?
The Rise and Fall: NFT Market Analysis
NFTs are like special certificates bought with online money. They’re linked to pictures or videos, but having an NFT doesn’t mean you own the pictures. It’s more about having a special status as the official owner, recorded on the uneditable blockchain.
Recent news tells us that the NFT market, which used to be super busy, has slowed down. It hit the lowest point in October, which people are jokingly calling “Floptober.” The total value of NFT transactions dropped a lot, going from $12.6 billion to $1.39 billion.
Industry Getting Smaller: Tough Times for Big Players
Not only has the market value gone down, but the NFT world is also getting smaller. Yuga Labs, the people who made the famous Bored Ape NFTs, recently said they had to let some people go. Bored Ape Yacht Club, a famous set of NFTs, used to sell for millions because famous people like Jimmy Fallon and Paris Hilton bought them.
The starting price of Bored Ape NFTs was high, around $268,000, but now it’s dropped to $56,000. This shows that artists and collectors are feeling the change.
Collector Stories: Winners and Losers
Taylor Whitley, who collects and makes art, had to sell six out of seven of his Bored Ape NFTs because the offers were not good anymore. Even though it’s a bit sad to sell when things are not going great, he made a lot of money when he first invested. He sold one recently and got back 1,000 times more money than what he put in.
Angie Taylor, an artist from Scotland, saw the value of her art drop from $8,000 to around $600. She had to go back to her part-time tutoring job to make money. But she knew this might happen, so she was ready for it.
Buyers’ Time: Finding Good Deals
Even with things going down, there are still people who want to buy. Little Fish, a person who invests in online money, got a piece of art called CryptoPunk for $663,000. He thinks it’s a good deal because a year ago, the person who sold it to him said no to an offer of $1.18 million.
Conclusion: NFTs Going Up and Down
NFTs had their time when everyone thought they were amazing, but now it’s a bit different. Some people face problems, but others see chances to get good things for less money. The world of NFTs is like a rollercoaster ride right now!