Amid the height of the non-fungible token (NFT) market in 2021, crypto entrepreneur Sina Estavi garnered attention by acquiring Twitter co-founder Jack Dorsey’s inaugural tweet as an NFT for an impressive $2.9 million.
At the moment of purchase, the Iranian investor attributed the NFT’s worth to its distinctive nature and its connection to a prestigious company like Twitter.
After two years, the perceived value of the identical NFT has drastically shifted, as indicated by the latest data from OpenSea, with the highest current offer standing at a mere $3.77.
Since 2022, Estavi’s attempts to resell the NFT have proven unsuccessful, with his initial listing price of $48 million failing to generate interest. Despite his promise to donate half of the proceeds to charity, the community remained unenthusiastic, as bids for the asset ranged as low as $280, with the highest offer reaching $6,800. This significant lack of interest disheartened Estavi, leading him to consider the possibility of never selling the NFT.
Amidst a record market downturn in the broader crypto industry, the NFT sector has experienced a significant decline in both activity and valuation. Bids for digital assets have notably plummeted, with blue-chip NFT collections like Bored Apes and Crypto Punks witnessing over a 70% reduction in their floor prices from their peak levels.
SEC Official Criticizes NFTs as Risky Investment
According to former SEC official John Reek Stark, fractionalized links to JPEGs of ‘bored apes’ donning humorous glasses and vibrant hats, or NFTs of Tweets, irrespective of the author, lack the attributes of a sound investment, a practical method of commerce, or a prudent route to financial success. Stark categorically described NFTs as a terrible investment, essentially rendering them worthless.
“A fractionalized link to a JPEG of a “bored ape” with funny glasses and a colorful hat is not a sound investment, sensible means of commerce or prudent pathway to live out the financial dream — and neither is the NFT of a Tweet, no matter who the author is.”
The former SEC official is an outspoken detractor of the cryptocurrency space, often sharing his critical views on the industry through his social media platforms.
The NFT market, once booming, has now seen a dramatic decline in value, leaving even high-profile purchases with diminished worth. Sina Estavi’s attempt to resell his NFT for a substantial profit failed to gain traction, echoing concerns raised by former SEC official John Reek Stark about the true value of such assets in an ever-changing crypto landscape. Despite the challenges, the cryptocurrency industry continues to evolve, with both proponents and critics voicing their opinions on its future.