Topic: Hype around NFTs have dropped a lot - page 2. (Read 388 times)

It's not really a production cost. The "cost" isn't fixed, it varies with difficulty, and difficulty reacts mostly to three things: electricity costs, technical progress (Moore's Law), but mostly the Bitcoin price itself. Thus there is some circular logic in the argument that Bitcoin has value because it has a production cost. Because the production cost does also depend on price ...

In addition, NFTs have also a (small) production cost if we follow that theory: transaction fees. Of course the idea of NFT investors is that NFTs should yield a profit. But for the Bitcoin miners, actually that's the same; they often hold some BTC in reserve and speculate with a higher price, and above all those who mined early, before the emergence of the big "mining industry" (let's say pre-2015) in many cases held all of them for later. So according to this price theory, Bitcoin and NFTs aren't that different.

But I actually agree that Bitcoin has a much clearer intrinsic value than NFTs.

In my opinion, Bitcoin's value is described relatively well by the "social network theory", i.e. the more people use it as a payment network, the more value it accrues. Bitcoin encompasses also the blockchain, i.e. the infrastructure to transact. NFTs do not really support this infrastructure, and their social network is much more limited.

Bitcoin has a production cost! You need to invest in an expensive mining right to be able to mine it. Also there's a recurring cost of electricity and colling. So when an asset has a production cost, it will have value. Because a miner is not going to give away Bitcoins for free.

NFTs do not have any production cost. It can be created for free and can be listed for free. No value at all whatsoever.

Investors' pursuit of short-term profits rather than the real value of the projects caused unsustainable price increases in the market.
When prices started to fall with the bubble effect, there was a decrease in volumes.
Because NFTs were sold at prices that had no value and none of them had functionality. Perhaps in the future, the perception of NFTs may change and reshape.

To answer your question, most NFTs really had no value and survived only on hypes and when the hype finally died down, it died with them.

I've been looking at Magic eden for a while tho. I really did see it on the pre-trade counter when I was searching for some available coins for pre-trade.

Official listing is actually today on Bitget tho.

To many good opinion been posted here and those are actually good reasons why NFT hype dropped a lot at current date.

Also I think many people now already done with those scams happening in that scene that's why there's less discussion about this and people is showing lack of interest on new NFT projects around.

Lastly I will not recommend people to invest now on NFT since all of them becoming a shit hole now just like other scams around.

Token hype in general is a temporary thing simply because all tokens under any name are completely useless. Since they don't offer any utility in the real world (apart from being something people bet on), they don't have any long term potential. As they get dumped, people abandon the scene entirely therefore the hype ends and tokens start dumping.

I don't think it has ended completely though. When the bitcoin bull market starts moving faster and bigger (like mid 2017) we will see a lot of newbies come into the market which will be potential victims for altcoins scammers who will create a new "brand":

This is the one, NFT's have absolutely nothing at all, and that's why I think we should consider how things could change and we should definitely consider how wasteful that period was and how people just freely gave money away for no return. Makes absolutely no sense why they actually believed that some ape on some digital screen would worth hundreds of thousands of dollars.

I mean it was obvious from the start and yet they still  believed in it. And the worst explanation I got was "bitcoin normally worths nothing neither, we make it worth something", without realizing, bitcoins are all the same, we all have same bitcoin, the idea of a unique screenshot or image being worth a lot was different and they didn't even realize that.

Because NFT is a hoax and doesn't provide any real value for money - that's why!

I can sit with my laptop and can create thousands of images of a repist looking monkey using Adobe illustrator and then flood the market using Polygon chain for free. What value it will provide to the buyer?

It's a hoax and nothing else! People seem to have realized it finally!

What do you expect from NFT that is criminally founded, alot of money laundering cases around NFTs which to me is very easy to get through with by the bad guy's to concealed their stolen funds, so the atmosphere around NFT is quite unsecured for both investors and the government at Large, and NFT is build on hype's just like memecions and the like of them, so for sure, their popularity will be limited to time when the hype is still very loaud and hot, but right now, no real investors will consider investing in NFTs because of the lack of sustainable ecosystem and lack of real time user case for NFTs and majority of the new NFTs lately are all scam like, so the motivation of investors have died down at the moment.

Currently, memecions is the hype of the moment, just as NFTs hard their time in the past, memecions projects have taken over the scene and their also should be allowed to rain untill the fade out in the future, so for now let NFTs become silent and we move, nothing that involves so.much fraud can leave long so let NFT die it natural dead.

One thing I always thought to be hilarious is that in most cases, people were actually buying a link to some resource on a website, not the resource itself (e.g. an image). This has all sorts of issues, for example, when the website/company gets down or even changes the website structure, then your NFT becomes worthless.

While that's a bit different since we have solutions like inscriptions, uniqueness is never guaranteed. Even if you are the first person buying a certain inscription, then that could be simply a copy of art from some non-blockchain resource.

The real issue is, thus: NFTs only work if there is some entity guaranteeing its uniqueness and that associated features (e.g. in a game) will work. But: Can't these entities simply sell the "NFTs" on their website? So in most cases it's a typical example for "you don't need a blockchain for it".

Well I think there was alot of hype around the NFTs when they did just become new. There was a lot of celebrities that was buying the NFTs and I do think it made them more interesting for people to own them.
I do remember people was paying Millions of dollars for these digital pictures. I did never think it was worth the investment. For me it was better to just buy Bitcoin and hodl. I only did buy 1 nft but it was not for alot of money and now it is not worth anything. 
https://www.cmcmarkets.com/en-gb/explore/celebrity-nft-index

The decline in hype on NFT is real, everyone used to talk about it, but now it seems to be slowly fading. Maybe because of the new hype like meme tokens or new categories of altcoins. I have my own view on why the hype on NFT is decreasing, it is due to 3 basic things.

1. NFT have no real use, they are just limited edition images.
2. Challenges on the legal side.
3. NFT stand for short term hype over long term vision.

The three things I mentioned above are the main problems that NFT should solve, when those three problems can be solved, I think the hype for NFT could last longer & be more sustainable.

currently some NFT started to have some traction again after announcement of pudgy penguin airdrop which promises to distribute some good portion of the token to other community as well.
trading volume on certain NFT that's predicted to get some reward from PENGU is increasing, but I don't know how long it will last, NFT in general, aren't that great anymore in term of overall activity, but that's what make it better, NFT finally find its real genuine use instead of becoming another meme 2.0 that's all about pump and dump.

most of NFT utility right now tightly tied with identification or some sort, mainly repurposed for airdrop and authentication.

It's just a cyclic matter that every trend that becomes popular every bull run becomes weaker after a year or so. And that's why we've seen these NFTs and other trends that have come to the market to drop. Go back years more and you will also recognize how the ICO market became at the peak and then eventually have dropped because of too many scams and that's a normal scene to see that these hypes drop around. So, if these comes again on the upcoming days. I'd warn people to study more about the project that you're looking at that produces that NFTs. That's just some friendly reminder.

The hype isn't like 2021 but we can't deny the fact that NFTs have been doing well lately. As a matter of fact, the whole market has been parabolic and some of those capital has found its way to NFTs. If I'm not mistaken, even Bored apes have seen a 50-100% price growth in the last 2 months alone. Not just bored apes. Others as well.

I don't think we'll get the kind of hype we got in 2021 but it's still something. I personally don't like nfts because of their illiquid nature. For instance, I have gaming nfts on ronin that I've been trying to sell for a month.

Only people that are new in the crypto space will think the hype isn’t going to die down. In the crypto space, everything is seasonal, and NFT season has passed. Around 2021, NFTs were just hyped during that time, and the hype has died down. I will say 2021 was just the season for NFTs, and lots of people took advantage of it, people made lots of money during that period, and now nobody is talking about NFTs again. All those NFTs don't have any use case, just the same way meme coins are having hype currently, it’s just temporary, it’s going to die down. Scammers took advantage of the NFT hype to scam lots of people.

The hype for most NFTs with no use cases is over. They were used for standard pump-n-dump stuff. They are useless digital assets that they raise the price to sell to the next sucker. The last one to buy loses. This kind of craziness happens in different things every cycle. With millions of people trading for a quick buck hoping to make big money, the ponzis in the financial markets never end, they just change their form.

Because every bull run and hype needs a correction, and higher that bull run is, more radical will the correction be. And NFTs got way too high too fast. They weren't as much liquid as altcoins, so one could get stuck with those.

They were also less understood then altcoins, so people sold all kind of snake oil with them, just like with blockchain solving everything, suddenly it was nfts solving proof of possession.

None of the real world financial adoption came true. Turns out that owning a token isn't a legally binding contract, so none of the talk about tokenized stocks and shares made sense. People only tokenized synthetics, and those were problematic.

People had also a short memory. There was a mycelium ico back in 2016, where they sold shares as "colored coins", which were precursor to NFTs. Soon after it turned out that's not something you can legally do. But somehow no-one talked about that. NFTs were just creating too much money, so people shut their eyes to reality. No one cared about legal hurdles, or the fact that the concept was silly to the core. That doesn't mean it won't be rising again, because people love silly things.

But that market volume also contained money laundering, because suddenly that was easier then ever. Just create a collection and buy it from your left pocket with money from your right pocket. Every purchase were pseudonymous and people paid ridiculous sums from them already, so it wasn't far fetch to claim that someone bought a pixelated rock with $200K.

My personal opinion, this happened for 3 main reasons
1. Most NFT's projects do not have real functional utility but collective item
2. Unlike real life collective items, too many NFT is coming every year, make it less scalable and lessen its rarity.
3. The money laundering issue around it.

How the hype around NFTs has decreased massively since 2021 where it was at the peak of popularity and even celebs were buying NFTs left and right. Anyways, why am I bringing this up? I was going through the pre market for Magic Eden and I actually went to check the marketplace and it reminded me of how I used to browse Opensea everyday in 2021 lol

Well , if you're still a memecoin person you'll know of Magic Eden, you know it's popular for it's multi chain functionality and that enables it to make and receive payments in a flexible manner, so it makes 5thye whole market place user friendly. It's no wonder the premarket has decent volume, around half a mil in vol

What do you guys think was responsible for that drop?