cryptoglobe.com
On the microblogging platform Twitter Nassim Nicholas Taleb, the popular author of the groundbreaking book “Black Swan,” criticized the burgeoning non-fungible token (NFT) industry, pointing out the incredible drop in value some tokens have had since their peak.
Through his tweet, Taleb launched a potent barrage of criticism against NFTs, asserting their suboptimal status as an investment choice. He attributed this to their inherent absence of intrinsic value coupled with the escalated degree of speculative behavior they promote.
Taleb’s tweet was in response to one posted by another user that highlighted the initial tweet of Twitter’s co-founder and current CEO of Block Inc, Jack Dorsey was sold as an NFT for a staggering $2.9 million in March 2021, while its most recent bid stood at a relatively meager $1.14.
One sign of mental deficit is "investing" in NFT. The problem is that it was obvious 2 years ago.
— Nassim Nicholas Taleb (@nntaleb) July 19, 2023
h/[email protected] https://t.co/aB0ylIVDko
Taleb’s scathing criticism comes amid a substantial downturn in the NFT market, with the average sale price of these tokens having falling over 90% from its peak in various cases. Taleb had, back in April, said that the “NFT thingy” was “starting to burst.”
Dorsey’s first tweet, after being converted to an NFT, initially attracted a bid of $2.5 million, but after being put back on sale in 2022, its asking price was $47.7 million.
While the NFT market has been contracting, the cryptocurrency market has been recovering. Ethereum, one of the most poular network on which NFTs are issued, has recently risen to test the $2,000 mark, and a popular analyst has recently revealed he sees an upside potential of nearly 60%.
As CryptoGlobe reported, institutional investors are seemingly increasingly turning to cryptocurrencies, as crypto investment products have recently seen a significant influx of funds, with products focusing on Bitcoin, Ethereum, and XRP leading the pack.
Ethereum’s net flows year-to-date remain negative, with investors moving $63 million out of these products so far this year. Similarly, products focusing on multiple digital assets have seen $200,000 of inflows last week, but $35 million of outflows throughout this year.
Featured image via Pexels.