The NFT advocate Gary Vaynerchuck revealed oversupply, greed, and inferior creations as the factors that plunged the NFT market to its lowest.
Vaynerchuck’s review of NFT performance revealed that increased uncertainty and fear eroded the trading volumes. His market outlook report conveyed via his blog post on December 12 highlighted that most NFTs experienced plummeting price levels.
Vaynerchuck ruled out the plummeting floor prices as an abnormality. He added that the current performance justified his prediction at the onset of 2022 that most NFT projects that thrived during the 2021 boom will soon become bad investments.
Challenges Confronting NFTs
Vaynerchuck explained that the prediction is fuelled by three critical issues: subpar creations, short-lived greed, and surplus. The VeeFriends creator admitted that oversupply is the greatest hindrance to the NFTs market. He argued that most influencers, artists, and celebrities joined the NFT wagon. The massive entrants destabilized the supply and demand principles for a young NFT segment.
The report showed that while some NFT projects delivered value, those led by poor creators failed the test. He observed that supply had outstripped demand for NFTs, thereby revealing short-term greed. Vaynerchuck highlighted that the rush by many individuals to make profits subjected the community to huge losses and scams. Similarly, it became inevitable for the rushed projects characterized by poor fundamentals to implode.
Vaynerchuck lamented that selfishness made artists, celebrities, and sportspeople treat the NFT marathon as a micro sprint, thereby acting selfishly. His arguments echoed findings from a June survey by blockchain software developer DEXterlab. The poll featured 1300 Twitter users, where 64.3% of the respondents confirmed the desire to earn convinced them to purchase NFTs. Surprisingly, 42% of the respondents confirmed earring profits from the purchase.
Vaynerchuck lamented that the ease of launching NFT projects explains the high number of creators with insufficient knowledge of business operations, community building, and stimulating demand. He regretted the crowding caused by such creators had eroded the NFTs’ viability.
NFTs Status in 2023
Vaynerchuck dismissed speculations of a bullish NFTs landscape in early 2023. He considered it unlikely to reignite the 2021 market boom.
Moreover, he recalled that NFTs’ performance in 2022 matched the dotcom bubble burst that crumbled most internet startups.
While the majority will crush out, he admits that a few projects will rise to dominate the NFT segment. He acknowledged VeeFriends’ success in ranking 20th in the NFTs collection with a $241.8M sales volume since its establishment in 2021.
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