Almost all new NFTs issued in 2024 turned out to be failures
Date: 2024-11-12 Author: Henry Casey Categories: CRYPTO PAYMENTS
Analysts attribute this to the fact that the excitement around NFTs has significantly decreased, investor confidence in digital collectible assets has decreased, and there is an imbalance between supply and demand for new tokens. Interest in metaverses has also decreased, since a number of large tech companies that had previously actively invested in this segment reported significant losses and began to move away from its further development.
“The low level of interest in most collectible tokens shows that many of them are neither unique, nor useful, nor valuable. Competition in the NFT market is extremely high, and creators are forced to make serious efforts to distinguish their tokens from many others,” the authors of the study note.
Another indicator of the decline in interest in new NFTs is the significant decrease in their value immediately after their release on the market. According to the study, 84% of NFTs issued this year reached their maximum value only at the time of creation, and then sharply lost value, falling by more than 50% in the first three days of trading. Only 0.2% of all new NFTs turned out to be profitable for investors, which highlights a more cautious approach to investing in this segment.
Notably, public criticism of NFTs is also growing. American comedian Joe Rogan recently expressed skepticism about the concept of digital rights, calling NFTs “mere screenshots.” Moreover, Minecraft developers Mojang Studios called on their colleagues in the gaming industry to refrain from implementing NFTs in order to protect the interests of players.
