During the peak of the non-fungible token (NFT) market in 2021, crypto entrepreneur Sina Estavi made headlines when she bought Twitter co-founder Jack Dorsey’s first tweet as an NFT for $2.9 million.
At the time of its purchase, the Iranian investor attributed the NFT’s value to its uniqueness and its association with a valuable company like Twitter.
Two years later, the perception of the value of the same NFT has changed significantly with the best bid currently standing at just $3.77, according to the latest data from OpenSea.
While Estavi has been trying to resell the NFT since 2022, his efforts have been futile as he listed the digital asset for $48 million. Estav promised to donate half of his earnings to charity at the time.
But offering a philanthropic gesture didn’t sway the community towards NFT as bids for the asset were as low as $280, while the highest bid at the time was $6,800. This greatly discouraged Estavin, who reportedly said he may never sell the NFT.
Estavi did not answer him CryptoSlate’s request for comment as of press time.
With the broader crypto market undergoing a record market decline, the NFT sector has seen a further decline in activity and valuation since then, and bids for digital assets have fallen drastically. In fact, blue-chip NFT collections like Bored Apes and Crypto Punks have seen more than 70% reductions in their price floors compared to their peak levels.
According to former SEC official John Reek Stark, a fractionalized link to a JPEG of a ‘boring monkey’ in funny glasses and a colorful hat, or the NFT of a Tweet, regardless of the author, is neither a sound investment, a sensible tool of trade, nor a prudent path to financial success.
Former SEC enforcement officer John Reek Stark DESCRIBED NFTs as a terrible investment that is basically worthless.
“A fractionalized link with a JPEG of a ‘boring monkey’ in funny glasses and a colorful hat is not a sound investment, sensible trading tool or prudent path to realizing your financial dream – and neither is the NFT of a Tweet, regardless of who the author is.
The former SEC official is a vocal critic of crypto who often comments on the industry on his social media pages.
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