Why Everyone Has Gone Crazy About Monkey NFT Avatars

If you know how the world of art trading works, you will know that in many of these cases the price paid for some works is inflated. On many occasions, the works are used to launder money, or they are simply overvalued to later donate them and obtain juicy tax exemptions.

So, for example, if an artist’s painting is valued after a sale for 5 million, the owner can donate it and deduct a large amount of taxes, even for several years. Thanks to this, you can spend years without paying hardly any taxes. Art appraisers are also involved in the “garlic”, who take a commission in exchange for granting a high value to those paintings.

An example of how important it is to maintain the value of these paintings can be found in Jose Mugrabi. This collector has been the largest collector of Andy Warhol works in history, with more than 800 works. When there was an auction of any work by Warhol, he would go and bid on it. If he got it at a good price, he could get money out of it. However, if someone outbid him, he was ultimately pushing up the value of Warhol’s works, thus increasing the value of his collection.

NFTs make it easy to make fake sales

Now, with NFTs, this has been brought within the reach of anyone who has plenty of Ethereum in their wallet . Imagine that you have 100,000 euros in Ethereum in your wallet, which at the current price is equivalent to about 43 Ethereum.

Now, you decide to create a piece of crypto art in NFT , and you buy it using that 100,000 euros that you have in your Ethereum wallet . You still keep your money in ETH, but now you also have an NFT whose last sale value was €100,000. After that, you decide to put it up for sale for 20,000 euros saying that you are applying a significant discount. Most likely, someone unwise will take it off your hands thinking they are buying something of value. There are profiles like this one that sell simple photos for figures like 50 ETH, which is equivalent to more than 100,000 euros, and others that sell for 2 million euros .

NFTs give you property rights over digital content , such as one of the famous works of monkeys. However, the real value of those objects is null, since the only thing you change in the blockchain is the ownership of a photo or multimedia content that can be saved with a simple right click.

OpenSea , which is where all these NFTs are traded, reviewed all NFTs at the end of January, and found that 80% were plagiarized, fake, or spam . Despite its name telling us that it is a non-fungible token, anyone can save our NFTs and upload them again.

A bubble that will burst soon

So, like fiat money or art, it all depends on the value that people place on something . NFTs can be traded, and for each sale, the creator gets a percentage. The object remains the same, but the value that people place on it continues to rise, and the prices of NFTs continue to rise.

That hasn’t stopped some from gaining enormous popularity. As in any bubble, at first there will be those who join and want to make money with the process. The famous monkey-faced Bored Ape Yacht Club NFTs are 10,000 avatars whose purchase grants benefits to their owners, such as membership in a specific club. In total, its sales have generated 1,000 million dollars in the different exchange operations. And many celebrities use them for profile pictures on platforms like Twitter, which now allow NFTs to be used for that purpose.

Thanks for the suggestions, Twitter. Meet Captain Breezy aka @BoredAndBreezy . Stay tuned for updates from the calm ocean waters. pic.twitter.com/ispcysNfV6

— Jimmy Fallon (@jimmyfallon) November 23, 2021

In this way, we are clearly facing a fad and a bubble that will burst sooner rather than later, but that is making many rich. We will see what will happen when the last person to pay hundreds of thousands or millions of euros for an NFT finds himself with something that nobody is going to want to buy.