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NFT Values are Sinking with the Plummet in Stock and Crypto Prices

Posted By Craig Whitley     May 18     32 views     0 likes     0 comments
If you're a collector of non-fungible tokens, or NFT's, changes are high that you're underwater in your investment.  NFT values have plummeted in recent months, as some of the new has worn off the hot NFT market, but their values tend to follow what cryto and stock values are doing in general. 

Investors never though that bitcoin would show strong correlation with stocks and equities, but it has.  While the stock market has been tanking, bitcoin's value has sunk well over 50% since it's peak closing price of $67,617 on November 8, 2021, the price of crypto's most valuable token has dropped below $30,000 several times in recent trading days.

When bitcoin sinks, all crypto sinks along with it. Although I feel sorry for crypto investors (me being one of them), I worry greatly about the state of the NFT market.  I purchased a number of NBA Top Shot NFT's when they came out, 12 to be precise.  Eleven of the 12 are far underwater, trading at 20% to 50% of the value I paid for them.  The twelve NFT is trading very close to my $325 purchase price.

I also own another 26 NFT's that are Ape-themed, which is hot, but I don't have the right artist.  I can't even get a bid on the ones I have up for auction on OpenSea.  The state of NFTs is sad, but the hype is probably as great as ever.  Here's what you need to know:

In an Exchange Wire article by Hannah Dillion on May 9, she painted a very said picture for NFTs.  Quoting part of her article:  "The market for non-fungible tokens (NFTs) is sinking at an alarming rate. Data website NonFungible reports that, since peaking at around 225,000 in September 2021, daily sales of NFTs have sunk to 19,000. The drop marks a staggering decline of 92%.

The decline of NFTs, which are digital tokens made up of blockchain, comes as interest rates rise across the world, stifling risky bets across financial markets. In this current economic climate, NFT owners are discovering their investments have significantly dropped in value; Sina Estavi, chief executive of blockchain company Bridge Oracle, purchased an NFT of Twitter co-founder Jack Dorsey’s first post on the platform for USD$2.9m (£2.3m) in March 2021. His efforts to auction the NFT just over a year later generated offers below USD$14,000 (£11,000), a sobering contrast to the USD$50m (£40m) Estavi anticipated."