As with many other areas of the internet, everything related to the metaverse and NFTs is booming right now. However, when investing money in this type of virtual element, we should take certain precautions or inform ourselves well.
We tell you all this because, as it is becoming known at the moment, the first failures in NFT investments are already beginning to be glimpsed. In fact, at this time and based on a series of studies related to all this, one in three NFT projects has little or no commercial activity. With this, what we want to tell you is that on average one out of every three NFT collections have failed over time. This means that they generate little or no trading activity, which for some users can become a serious problem.
And that’s not all, as another third is trading below the amount it cost to mint those virtual currencies. To give us an idea of all this, about 8,400 collections made up of 19.3 million NFTs on the Ethereum blockchain have been analyzed to obtain this data. Thus, as failed projects of this type accumulate , the losses for both companies and end users accumulate. It must be taken into account that right now NFTs have become one of the benchmarks for cryptocurrencies. Therefore, there are people who seek to take advantage of this growing interest from other less informed users.
If we focus on this type of tokens in particular, generally the prices of digital certificates of authenticity usually represent objects of art or collections.
Many invest in NFT without knowing the market
Believed to be one of the world’s largest NFT holders, an anonymous user known as WhaleShark, is surprised. The main reason for this is that he considers that the money is running too fast and there are many ignorant of the market that are investing at the moment. In fact, we can say that there have been some big investments that initially made big headlines. An example of all this can be found in the purchase of Bored Apes by celebrities like Madonna for more than 500,000 dollars. But over time it is beginning to show that they have not been the best investments.
Precisely because of all this, the general sales of NFTs have decreased recently. In the last month, sales have decreased by around 40% compared to the previous month. To give us a rough idea, trading volume on OpenSea , the largest NFT market, is down 67% in the last 30 days. It must be taken into account that, after the initial boom and explosion of these virtual goods, some resounding failures and monetary losses have been seen.
Hence, many investors around the world are beginning to consider the benefits that NFTs could bring in the future. For many experts, this new market is now beginning to enter a phase of stabilization after the peaks reached in the past year. One of the fears is that the value of these tokens could plummet if the creators do not come up with new plans.