Apr 4, 2021
Prices for digital collectibles like art and sports memorabilia are sliding, turning the focus back on whether the nascent market for so-called non-fungible tokens is any more than a fleeting mania.
Average prices for NFTs essentially tradable digital certificates that use blockchain technology to prove ownership and provenance of online assets have tumbled almost 70% from a peak in February to about $1,400, according to Nonfungible.com, which tracks a variety of NFT marketplaces.
A burst of interest in NFTs hit a peak last month when a digital artwork by Beeple sold for a staggering $69.3 million. For some, that sum showed NFTs were in the grip of investor excess in a world full of stimulus, and destined to fizzle. Others who study the technology argue the use of blockchain to create scarcity for digital collectibles is a lasting innovation rather than a price fad.
NFT price crash stirs debate on whether stimulus-led fad is over japantimes.co.jp - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from japantimes.co.jp Daily Mail and Mail on Sunday newspapers.
Do You Want To Buy A Bridge? Inside The Strange Fantasy World Of NFTs .
Recently, a piece of collage art entitled “Everydays: The First 5000 Days,” by an artist known as Beeple, sold at a Christie’s auction for $69 million. The Wall Street Journal noted that the price was higher than any that has ever been paid for works of Frida Kahlo, Paul Gaugin, or Salvador Dali. But, before the auction, few outside the digital art world had ever heard of Beeple, which may explain why the bidding started at just $100.
But the sale does not suggest a sudden re-evaluation of his talents. Instead, it is a stunning statement about the medium of the art itself or, more precisely, the lack of it. In fact, “Everydays: The First 5000 Days” isn’t made out of anything you can touch. It is entirely virtual.