In the article “NFTs Aren’t Dead Just Yet (But the MSM Might Be)” by CoinDesk, the recent claim made by Rollingstone.com that NFTs are now worthless is analyzed and critiqued. Despite a study showing that 95% of NFT collections have a market cap of zero ETH, indicating their lack of value, the article argues that NFTs are still alive and active with a weekly trading volume of about $63 million. It acknowledges the existence of collections like Bored Ape NFTs that still hold value and are being traded at respectable prices. The broader message conveyed is that media outlets often resort to extremes and hyperbole, leading to exaggerated claims about the demise of technologies like NFTs. As a useful technology with wider applicability beyond just the art market, NFTs are praised for their potential in tracking and trading various digital and physical items. While the media is criticized for lacking nuance and credibility, the article commends the crypto community for persistently building and developing practical applications despite negative media coverage.
The Claim by Rollingstone.com
Rollingstone.com recently published an article claiming that NFTs, or non-fungible tokens, are now worthless. This bold statement has caught the attention of the cryptocurrency community and has sparked a heated debate. While it is true that some NFT collections have seen their value diminish, it is premature to declare the entire NFT market as worthless.
Study by dappGambl
To provide some context to the claim made by Rollingstone.com, a study conducted by dappGambl found that 95% of NFT collections have a market cap of zero ETH. This statistic suggests that a significant portion of NFTs currently hold little or no value. However, it is important to delve deeper into the reasons behind this phenomenon and consider the broader picture.
Trading Activity and Value of NFTs
Despite the prevalent notion that NFTs are now worthless, trading volume data tells a different story. According to recent reports, the weekly trading volume of NFTs is approximately $63 million. While this figure may not be as impressive as it once was during the NFT craze earlier this year, it still demonstrates a significant level of trading activity.
Additionally, there are notable collections within the NFT ecosystem that continue to hold value and are being actively traded. For example, the Bored Ape NFT collection has gained traction and is currently being valued at respectable prices. These examples challenge the notion that all NFTs have become worthless and suggest that there is still value to be found within the market.
Notable Collections with Value
One of the key findings of the study conducted by dappGambl was that 95% of NFT collections have zero market cap. However, it is important to recognize that this statistic does not represent the entire NFT market. There are numerous collections that have gained significant value and continue to attract investors and collectors.
Collections such as CryptoPunks, Art Blocks, and the Bored Ape Yacht Club have become highly sought after due to their uniqueness and scarcity. These collections have managed to establish themselves as valuable assets within the NFT ecosystem. The fact that these collections are still being actively traded and command high prices suggests that there is value to be found within the NFT market.
Media’s Exaggeration and Hyperbole
The claim made by Rollingstone.com that NFTs are now worthless is a prime example of the media’s tendency to exaggerate and sensationalize. It is not uncommon for media publications to seek extreme positions and use hyperbolic language to capture readers’ attention. While it is true that the NFT market has experienced a downturn, it is by no means dead.
The media’s exaggeration of the situation not only misrepresents the current state of the NFT market but also undermines the potential and usefulness of NFT technology. By focusing solely on the decline in value of some NFT collections, the media fails to acknowledge the broader applications and benefits of this technology.
Wider Applicability and Usefulness of NFTs
NFTs are not limited to the art market, as the media often portrays. While NFTs have certainly made a splash in the art world, their applicability extends far beyond that. NFTs have the potential to revolutionize industries such as gaming, music, real estate, and even identity verification.
In the gaming industry, NFTs can be used to create unique in-game items or characters that players can buy, sell, and trade. This not only enhances the gaming experience but also provides a new way for developers and creators to monetize their work. Similarly, musicians can release limited edition NFTs of their songs or albums, allowing fans to own a piece of their favorite artist’s work.
NFTs also have the potential to transform the real estate industry by enabling the tokenization of property ownership. This would make property transactions more efficient, transparent, and accessible. Furthermore, NFTs can be used for identity verification, ensuring that individuals have control and ownership over their personal data.
The wider applicability and usefulness of NFTs indicate that this technology is far from worthless. It is a powerful tool that has the potential to disrupt and improve various industries.
Criticism of the Media
The media’s lack of nuance and credibility when covering topics like NFTs is concerning. By painting an oversimplified and exaggerated narrative, they fail to provide their audience with an accurate understanding of the situation. This can lead to misinformation and a distorted perception of emerging technologies like NFTs.
Instead of fostering a productive dialogue and informing the public about the potential and risks associated with NFTs, the media often resorts to sensationalism. It is vital that journalists and publications take a more balanced and nuanced approach when covering complex topics like NFTs. By doing so, they can contribute to a more informed and educated discourse.
Positive Developments in the Crypto Community
Despite the negative media coverage and exaggerated claims, there are positive developments occurring within the crypto community. Entrepreneurs, developers, and innovators are actively working on improving and expanding the applications of NFT technology.
Projects such as the Decentralized Autonomous Organization (DAO) are utilizing NFTs to enable collective decision-making and governance within their communities. This demonstrates the potential for NFTs to facilitate more democratic and inclusive systems.
Furthermore, advancements in blockchain technology are making NFTs more accessible and environmentally friendly. Layer 2 scaling solutions, such as Ethereum’s Optimism and Polygon, are reducing transaction fees and energy consumption associated with NFT transactions.
The existence of these positive developments within the crypto community illustrates the resilience and potential of NFTs. It demonstrates that despite negative media narratives, there are individuals committed to building and developing useful applications with this technology.
In conclusion, while Rollingstone.com claimed that NFTs are now worthless, a more nuanced analysis reveals that this statement is far from accurate. While some NFT collections may have lost value, the entire NFT market is far from dead. There is still trading activity and notable collections that hold significant value.
The media’s exaggeration and hyperbole hinder the understanding of NFTs and their wider applicability. NFTs have the potential to revolutionize various industries beyond just art, and their usefulness should not be discounted.
It is crucial that the media exercises more nuance and credibility when reporting on emerging technologies like NFTs. By doing so, they can provide the public with more accurate and informative narratives. Despite the negative coverage, the crypto community continues to push forward with positive developments and improvements in NFT technology.