“Black Swan” author Nassim Taleb believes that the hype around non-fungible tokens is dissipating due to rising interest rates
‘Black Swan’ author Nassim Taleb thinks the non-fungible token craze may be coming to an end, according to a recent tweet.
The Lebanese-American mathematical statistician is convinced that higher interest rates will make the bubble burst. The U.S. Federal Reserve’s ongoing monetary tightening is expected to exert pressure on risk assets.
Taleb pointed to the fact that the NFT value of Jack Dorsey’s very first tweet has all but lost its value.
Crypto entrepreneur Sina Estavi caused quite a stir last March after shelling out $2.9 million for the 15-year-old “just setting up my twtt” tweet. It was sold via an auction on the “Valuables” platform, which is run by Cent. Dorsey then announced that he would donate the proceeds from the sale to charity.
As reported by U.Today, Estavi recently decided to sell his rare NFT. Initially, the contractor demanded $48 million for the exclusive copy of Dorsey’s first tweet.
However, the attempt to sell the NFT spiraled into a disaster shortly after the start of the auction. Estavi became the subject of ridicule on social media after only attractions minuscule offers in the range of low hundreds of dollars. The businessman was then forced to remove the initial price tag. At press time, the highest bid is only $18,221, meaning that the NFT has lost more than 99% of its value.
Estavi told Reuters he wouldn’t sell the NFT to anyone because he thinks it’s the “Mona Lisa of the digital world”. The auction could end up being cancelled.
NFTs exploded in popularity in 2021, but many naysayers warn that this hype might not be sustainable.
