The word 'bonce back' here is a clear proof the non fungible token (nft) industry once bounced. When new projects emerge in the crypto industry, fear of missing out (fomo) and hypes are always first time experience. We all saw it happened when developers realized bitcoin was selling on the rooftop.
Thousands of cryptocurrency projects flooded the market with promises, visions and missions. A lot bought the hype and investments turned to be potential market loss (financial), shitcoins turns dust and till date I must say, there are projects that may never resurface; this is not about being in a deep sleep, they are completely dead. Sorry if you are still holding such bags.
One of the industries that has remained uncertain in the eyes of investors has been NFTs. Although the history of NFTs can be dated back to 2017, we all saw the market boom in 2021. To be precise, August 2021 saw this industry at its peak reaching a trading volume of $2.8 billions, thanks to celebrity investors who headed the surge with hopes of a safe haven to express and store value.
You probably must have heard of some of those high sales like A tweet by Jack Dorsey, the founder of Twitter, which sold for $2.9 million. I know you might be thinking it should have been you turning a few write-ups on a computer page to millions. Hahaha, it was Jack Dorsey, others of such fortunes include, Etherok's digital painting of rock which sold for $1.3 million dollars, Beeple's images which sold for $69 million and several others.
The thinking looked right? Yet the later outcome was wrong, we saw the market plummet to unexpected positions. A report in 2023 showed that close to 95% of collectible NFT projects are now worthless, I mean having a market capitalization of zero.You know what this means, money changed hands in an unfavorable manner.
The fall of NFTs can be attributed to several factors such as technological misunderstanding, tech insecurity,fraud, Fake products, price hypes and many others you can think of. The market was really overcrowded with 'uncertain certainties' if I may say. Projects were duplicated and sold to investors. The market brainwashing was so high and the moment investors came to their senses, boom! The knife fell.
Nevertheless, the big question remains, is there still a future for NFT? When will the bounce back occur?. Misunderstanding a technology does not mean it's wrong, you'll only get wrong results and the moment you get to understand it, then the right application will kick it back to winning ways. This is what just happened to NFTs, it was at its baby phase and we all know babies need to mature before they find the true value of themselves.
Have you ever sat back to relook at the true meaning of NFTs? There may be several definitions out there but let's just in a few words call it 'a blockchain tech recorded system that certifies ownership digitally'. This means owning rights to products or services and beyond because there is a unique digital identifier that represents the ownership of that digital assets.
Mostly it has been attributed to artifacts but a clear understanding shows NFTs grow beyond such a niche. Yes, the artifacts industry is too small to cage NFTs. Do you know the empowerment artist and creators have been opened to in this process? Big industries and firms could make use of NFTs adding value and rewards to every product and service that comes from them.
The technology behind this industry guarantees a bounce back and this time it will not be about FOMO and hypes but rather efficient adoption. Blockchain technology has given out unending opportunities on how developers, artist, creators and businessess who have been in the shadows can surface. NFTs sit just right when the industry will be swept clean of unhealthy players.
Come to think of it, you could sell 1btc for 1btc (making it fungible) but the reverse is the case for non-fungible tokens, it exceeds beyond price piercing into the uniqueness of digital assets. It will take some time to gain the needed confidence anyway, but without doubt, a smart investor can start planning early for this industry bounce back.
The baby phase for this industry is over and what follows from here will be the true value and use case of it. More needs to be done when it comes to trustworthiness and sourcing of this digital asset. For instance, the issue of regulations within several States, regions and countries will need to be properly emphasized. Spotting out fakes and duplicates may still look a challenge yet curbing and corrections are certain.
As I earlier said, you shouldn't be surprised when things go bad at early tech development, it happened in the cryptoverse and we've probably seen a lot of correction to better this ecosystem (digital). The belief that NFT is a dead project is to me more of a sentiment that lacks research and proper understanding of the tech behind the industry. Do your proper research, even when buying a pack of biscuits, you have to check the ingredients and expiry date. Chasing FOMOs and hypes has its consequence yet technological embracement is a different ball game entirely. Knowing the high demand of NFT in the near future will expose you to opportunities beyond its early rise and fall.
To conclude, let me add, there should be no letting down as to the potentials of what NFT can offer to several industries. The inception may not have worked out as planned yet much assurance must be placed on the technology. We need to check and correct early adoption errors to bring this industry back to life soon. There might have been losses that triggered fear uncertainty and doubt (fud) for this industry that is why I keep saying, do your own research, you will be inspired by the later.
