No news is definitely not good news when it comes to pricing Non Fungible Tokens, or NFTs. These have been in the headlines recently. In most cases, those stories have been about one new NFT record after another being set. Suddenly, however, NFTs are not in the news, which leads one to assume that they are not posting any new records at the moment.
Perhaps it might be more accurate to say that they are not posting any new record highs. Instead, many darlings of the NFT space have been very quietly, how do you say, dropping like a rock. Yet these are rocks which nobody seems to hear falling. The owners of the tokens now selling at heavy discounts certainly hear them falling, but nobody out in the rest of the world seems to be paying much attention.
Does this mean that NFTs were just a fad like swallowing live goldfish in the 1920s? Nobody believes that. Instead, it means that the industry is consolidating after a period of fervent rise. When things started heating up, there were many people who threw some spare speculative funding at it to see if it would go viral or not. At first, it seemed to do just that. This warranted another dose of risk capital entering the arena.
As things inevitably began to lose enthusiasm after that first frantic burst of creativity, it was only logical for some players to cash in their chips and wait for the next new thing to come along. In that regard, they never believed in NFTs as anything other than a speculative play which paid off handsomely for them. If pork bellies had been rising faster, that’s where their chips would be placed.
Others believed more strongly in NFTs as a viable concept and hodl-ed to the point where they started to lose money and confidence. At that point they cut their losses. The result of this temporary abandonment of the project by those in search of mega-gains has been to put a silent, and dropping, floor onto the price of NFTs for now. Yet this is only for now. Consolidation is taking place. New recruits are joining the cause and the banners will soon move forward again.