23 million people lost their money when investing in NFTs

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About two years after the Non-Fungible Token technology boom attracted a slew of artists and celebrities, researchers estimate the Non-Fungible Token investments of about 23 million investors have become worthless.

Tens of thousands of Non-Fungible Token were once XEM the latest and fast-growing trend in the technology sector and have attracted many celebrities, artists and even former President Donald Trump's wife, Melania Trump, now This is almost worthless.

According to a new report by dappGambl based on data from Non-Fungible Token Scan and CoinMarketCap, 69,795 out of 73,257 Non-Fungible Token collectibles have a current market Capital of 0 Ether, leaving 95% of Non-Fungible Token collectible holders – equivalent with 23 million people – lost all their investments.

In March 2021, when the Non-Fungible Token market began its peak cycle, cryptocurrency entrepreneur, Sina Estavi made headlines when he spent $2.9 million to buy an Non-Fungible Token of the first tweet from former Twitter boss, Jack Dorsey.

In December 2021, former First Lady Melania launched an Non-Fungible Token collection called Melania's Vision, including a limited edition digital artwork of her eyes.

The report said the sharp market decline involving crypto assets “underscores the need for thorough due diligence before making any transactions, especially those at a high price.” high value".

An Non-Fungible Token work called Bored Ape Yacht Club. (Photo: Reuters)

“In fact, this difficulty should Vai as a sobering check on the excitement that often surrounds the Non-Fungible Token space. Amid stories of digital artworks selling for millions of dollars and overnight success stories, it's easy to overlook the fact that the market is rife with pitfalls and pitfalls. potential losses,” the report emphasized.

The report also revealed that 79% of all Non-Fungible Token collectibles currently remain unsold, due to demand being too low compared to supply in a market that researchers have described as “incipient.” high stakes and full of volatility.”

To analyze the current state of Non-Fungible Token assets, dappGambl researchers XEM at the top 8,850 Non-Fungible Token collections according to CoinMarketCap. They discovered 18% of these top collections were priced at zero, essentially worthless. The report revealed that 41% of top collections are priced between $5 and $100, which may indicate the low value attached to these assets.

Furthermore, less than 1% of collections are worth more than $6,000, a stark change from the multimillion-dollar transactions that dominate the Non-Fungible Token market, which is valued at up to $22 billion in 2021.

The study also analyzed the negative environmental impacts associated with the Non-Fungible Token minting process. Researchers identified 195,699 Non-Fungible Token collections without owners, and minting these Non-Fungible Token required electrical energy equivalent to 27,789,258 kW/h, resulting in approximately 16,243 tons of CO2 emissions.

To compare this emission figure, the report emphasizes that 16,243 tons of CO2 is equivalent to the annual emissions of 2,048 homes. It is also equivalent to the annual emissions of 3,531 cars or the carbon emissions of 4,061 passengers flying from London to Wellington, New Zealand.

Chart of Non-Fungible Token collections grouped by floor price | Source: dappGambl

Additionally, the report revealed the number of dead Non-Fungible Token could be even higher.

“MacContract on Ethereum has a floor price of 13,234,204.2 USD, but its sales are only 18 USD,” the report states, adding: “The difference between the listed floor price is clear and actual sales data shows a significant problem in the Non-Fungible Token market – absurdly high valuations that do not reflect genuine buyer interest or real-world transactions.

Despite the volatility of the Non-Fungible Token market, dappGambl researchers are confident that Non-Fungible Token still have a place in the future. According to them, to survive market downturns and maintain long-term value, Non-Fungible Token need to have appropriate historical value such as first-edition Pokemon cards, authentic works of art, or provide convenience. really useful.

According to Duc Hieu

Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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