In 2021, when the market for non-fungible tokens (NFTs) was at its height, prominent cryptocurrency investor Sina Estavi made news by paying $2.9 million for Twitter co-founder Jack Dorsey’s first tweet in NFT form.
Dorsey’s investor made his purchase based on his perception of the NFT’s value due to its rarity and its relationship with a prestigious firm like Twitter.
Two years later, the best price for the same NFT has dropped drastically to just $3.77, per the most recent statistics from OpenSea.
Estavi has been unsuccessfully trying to resell the NFT since 2022 when he first listed it for $48 million. Estavi has previously stated that he would give fifty percent of his earnings to charity.
The NFT’s promise of a good deed did not get the community excited, since the lowest bid for the asset was $280 and the highest bid was $6,800. This made Estavi so sad that he supposedly said he would never sell the NFT again.
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NFT Market Continues to Cool as Crypto Prices Collapse
At the time of going to print, Estavi had not responded to a request for comment from CryptoSlate.
Since then, the NFT industry has suffered a further reduction in activity and valuation, and bids for digital assets have substantially dropped due to the larger crypto market’s historic market collapse. The floor price of popular NFT collections like Bored Apes and Crypto Punks has dropped by over 70% from their all-time high.
In the words of former SEC officer John Reek Stark, “A fractionalized link to a JPEG of a ‘bored ape’ with funny glasses and a colourful hat, or the NFT of a Tweet, regardless of the author, is neither a sound investment, a sensible means of commerce, nor a prudent pathway to financial success.”
John Reek Stark, a former SEC enforcement employee, called NFTs a “terrible investment” that “basically has no value.”
To paraphrase one Twitter user: “A fractionalized link to a JPEG of a “bored ape” with funny glasses and a colourful hat is not a sound investment, sensible means of commerce, or prudent pathway to living out the financial dream—and neither is the NFT of a Tweet, regardless of who the author is.”
The former SEC officer is an outspoken opponent of cryptocurrencies, routinely sharing his thoughts on the subject on social media.