A $2.9 million NFT barely fetched $14,000 at a recent auction as NFT interest skyrockets.
NFTs are the latest crypto fad on the internet, an environmentally harmful receipt for images, gifs, microtransactions, etc., but they are not proving popular. In fact, NFT sales are down 92% since September.
According to data collected by The Wall Street Journal, NFT sales have fallen from a daily average of 225,000 to just 19,000 and that number continues to drop. Their popularity is waning despite several game companies jumping into the ring – Konami creates NFT images for its classic games, Ubisoft sells NFT microtransactions, and Square Enix has even sold Tomb Raider, Deus Ex, Thief, Crystal Dynamics, and more. Eidos to focus on blockchain.
Additionally, those who purchased NFTs would find that the value of their purchases dropped exponentially. Co-founder Jack Dorsey’s very first tweet sold for $2.9 million last year in March, but when it went up for auction, bids did not exceed $14,000. Interest wanes.
VGC also pointed out that searches for the term NFT have also declined rapidly, dropping 80% since January. Those with expensive NFTs might better hold on to their precious JPEGs and receipts because people just aren’t looking for them, let alone buying them, although Estavi says this doesn’t necessarily indicate NFTs failing, but rather than the market fluctuating.
But not all game developers are getting into the NFT racket. Jackbox CEO Mike Bilder said he had “no interest”, while 70% of game developers in a survey said they didn’t want to get into NFTs either. One developer even wrote, “How this didn’t get identified as a pyramid scheme is beyond me.”
Despite all this, other industry veterans see a future in NFTs, like Reggie Fils-Aimé who has called himself a “blockchain believer.” Pokemon Go developer Niantic is also “reviewing” NFTs for its new game, Peridot. Either way, interest in NFT is down and Metaverse games have been performing poorly, so the future doesn’t look as crypto as many are making it out to be.
Next: If Only There Was A Way For Game Companies To Know NFTs Were Bad Before The Backlash
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