Renowned author Nassim Nicholas Taleb, known for his groundbreaking book “Black Swan,” recently took to Twitter to unleash a scathing critique of the non-fungible token (NFT) industry.
Taleb pointed out the significant drop in value that some NFTs have experienced since their peak, questioning their status as a viable investment choice.
His criticism was sparked by the revelation that Twitter’s co-founder, Jack Dorsey’s initial NFT tweet, sold for a staggering $2.9 million in 2021, now received a mere bid of $1.14.
In his powerful Twitter commentary, Nassim Taleb voiced skepticism regarding NFTs as a sound investment option. He attributed their lackluster performance to the absence of intrinsic value and the speculative nature they inherently encourage.
As the NFT market continues to fluctuate, Taleb’s critical remarks highlight growing concerns about the long-term sustainability of this digital asset class.
The initial tweet by Jack Dorsey, the CEO of Block Inc and co-founder of Twitter, was transformed into an NFT and sold for an eye-popping $2.9 million in March 2021.
However, its recent bid stands at a significantly lower $1.14, showcasing the volatile and unpredictable nature of the NFT market.
Taleb’s comments come at a time when the average sale price of NFTs has experienced a drastic decline, falling over 90% in various cases.
While the NFT market faces contraction and uncertainty, the cryptocurrency market has shown signs of recovery. Ethereum, a prominent network for NFT issuance, recently surged and approached the $2,000 mark.
Industry analysts predict a potential upside potential of nearly 60% for Ethereum. This recovery comes amidst increasing interest from institutional investors, leading to substantial inflows of funds into crypto investment products focusing on major cryptocurrencies like Bitcoin, Ethereum, and XRP.