It's also important to keep in mind that fraud is rampant in NFTs, such as the same person faking transactions by essentially buying his own asset with a flash loan. This means that the paper trail is left behind but no sale actually happens.
The most expensive NFT to date was the result of such a fraud.
This is a testament to the dumb money being invested into crypto. Mark my words, the Bitcoin crash is going to be brutal and will be remembered as one of the largest bubbles the market has ever seen. The complexity of blockchain technology is nothing more than an obfuscation of a Ponzi scheme. It's no different than any other scheme claiming to use quantum technology.
Actually, this is not correct at all. Every Bitcoiner I know thinks (most) NFTs are a scam, a grift, a fad... If you said "Cryptocurrency" enthusiasts, sure.
The blockchain itself is nothing bad or wrong, it's an interesting piece of technology in fact. The issue is that the current valuation of the whole crypto market is based on future, hopeful and unrealised potential, based on shaky foundations and questionable politics, not on actual value. Which is fine, but it starts to be an issue when laymen buy into it because they see a high price and think this must mean high value. And thus it increases, and more hopefuls and people with more money than sense keep the party going and more suckers are pulled in. But while the price has increased a million-fold over the years, the value has remained the same.
While these 3 things are quite old, the blending of these technologies -- to create censorship resistant, trustless, eternal, decentralized peer to peer ledger that cannot be altered is actually quite new and interesting. It shifts the entire power model from authorities to the users. Revolutionary!
If you really believe it is not interesting, that is fine too! The technology is opt-in and voluntary. You can throw as many rocks all you like.
I'm gonna at least offer the possibility that this story doesn't have much to do with NFTs at all. Rather, it's just the story of a young BIPOC artist whose art and story are resonating people. After all, she has gotten a lot of recent publicity. I don't purport to know much about art, but it wouldn't be the first time I've been bewildered by its valuation.
That said, "NFT-hype" is almost certainly causing at least some price inflation here, but I don't think the levels of fraud suggested by other commenters are likely.
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[ 3.2 ms ] story [ 60.7 ms ] threadCongrats to whichever family member managed to succeed in this project using a child as the face of it!
The most expensive NFT to date was the result of such a fraud.
https://www.cnet.com/news/why-this-cryptopunk-nft-sold-for-5...
Relevant link: https://en.wikipedia.org/wiki/Wash_trade
I'd bet that if someone bothered to trace the wallets used in the transaction, they'll find out they start and end at the same person.
But Bitcoin.. Bitcoin is something else.
Most people who aren't wealthy do not participate in NFT trades, and most adults don't even know what it is.
At this point, there's too much institutional money and development momentum to go back two years ago.
If Bitcoin was to drop below 20k, it would probably be bought instantly as it would be considered a great deal.
Yes, it certainly feels like a Ponzi scheme.
If you really believe it is not interesting, that is fine too! The technology is opt-in and voluntary. You can throw as many rocks all you like.
1. Completly made up, written by a company involved in NFTs. The image is generated by AI
2. Real, but actually a money laundering scheme
3. Real, and people are really stupid
4. Real, but nowhere near $6M was actually collected
Can't tell which one it is, but neither would really surprise me.
That said, "NFT-hype" is almost certainly causing at least some price inflation here, but I don't think the levels of fraud suggested by other commenters are likely.