{"id":451006,"date":"2022-05-22T09:42:58","date_gmt":"2022-05-22T06:42:58","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-nfts-lost-their-lustre\/"},"modified":"2022-05-22T09:42:58","modified_gmt":"2022-05-22T06:42:58","slug":"how-nfts-lost-their-lustre","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-nfts-lost-their-lustre\/","title":{"rendered":"#How NFTs lost their lustre"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2b57c3af81f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2b57c3af81f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-nfts-lost-their-lustre\/#%E2%80%9CHow_NFTs_lost_their_lustre%E2%80%9D\" >&#8220;How NFTs lost their lustre&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CHow_NFTs_lost_their_lustre%E2%80%9D\"><\/span>&#8220;How NFTs lost their lustre&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2022\/enthusiasts-promote-nf.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/2022\/enthusiasts-promote-nf.jpg\" data-sub-html=\"Enthusiasts promote NFTs as a user-friendly entry into the crypto space.\">\n<figure class=\"article-img\">\n            <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2022\/enthusiasts-promote-nf.jpg\" alt=\"Enthusiasts promote NFTs as a user-friendly entry into the crypto space\" title=\"Enthusiasts promote NFTs as a user-friendly entry into the crypto space.\" width=\"800\" height=\"530\"\/><figcaption class=\"text-darken text-low-up text-truncate-js text-truncate mt-3\">\n                Enthusiasts promote NFTs as a user-friendly entry into the crypto space.<br \/>\n            <\/figcaption><\/figure>\n<\/p><\/div>\n<\/div>\n<p>A slew of celebrity endorsements helped inflate a multi-billion dollar bubble around digital tokens over the past year, but cryptocurrencies are crashing and some fear NFTs could be next.<\/p>\n<p>                                                                                NFTs are tokens linked to digital images, &#8220;collectable&#8221; items, avatars in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>s or property and objects in the burgeoning virtual world of the metaverse.<\/p>\n<p>The likes of Paris Hilton, Gwyneth Paltrow and Serena Williams have boasted about owning NFTs and many under-30s have been enticed to gamble for the chance of making a quick profit.<\/p>\n<p>But the whole sector is suffering a rout at the moment with all the major cryptocurrencies slumping in value, and the signs for NFTs are mixed at best.<\/p>\n<p>The number of NFTs traded in the first quarter of this year slumped by almost 50 percent compared to the previous quarter, according to analysis firm Non-Fungible.<\/p>\n<p>They reckoned the market was digesting the vast amount of NFTs created last year, with the resale market just getting off the ground.<\/p>\n<p>Monitoring firm CryptoSlam reported a dramatic tail-off in May, with just $31 million spent on art and collectibles in the week to May 15, the lowest figure all year.<\/p>\n<p>A symbol of the struggle is the forlorn attempt to re-sell an NFT of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> founder Jack Dorsey&#8217;s first tweet.<\/p>\n<p>Dorsey managed to sell the NFT for almost $3 million last year but the new owner cannot find anyone willing to pay more than $20,000.<\/p>\n<p><b>The year of scams<\/b><\/p>\n<p>Molly White, a prominent critic of the crypto sphere, told AFP there were many possible reasons for the downturn.<\/p>\n<p>&#8220;It could be a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> decrease in hype, it could be fear of scams after so many high-profile ones, or it could be people tightening their belts,&#8221; she said.<\/p>\n<p>The reputation of the industry has been hammered for much of the year.<\/p>\n<p>The main exchange, OpenSea, admitted in January that more than 80 percent of the NFTs created with its free tool were fraudulent\u2014many of them copies of other NFTs or famous artworks reproduced without permission.<\/p>\n<p>&#8220;There&#8217;s a bit of everything on OpenSea,&#8221; said Olivier Lerner, co-author of the book &#8220;NFT Mine d&#8217;Or&#8221; (NFT Gold Mine).<\/p>\n<p>&#8220;It&#8217;s a huge site and it&#8217;s not curated, so you really have no idea what you&#8217;re buying.&#8221;<\/p>\n<p>LooksRare, an NFT exchange that overtook OpenSea for volume of sales this year, got into similar problems as its rival.<\/p>\n<p>As many as 95 percent of the transactions on its platform were found to be fake, according to CryptoSlam.<\/p>\n<p>Users were selling NFTs to themselves because LooksRare was offering tokens with every transaction\u2014no matter what you were buying.<\/p>\n<p>And the amounts lost to scams this year have been eye-watering.<\/p>\n<p>The owners of Axie Infinity, a game played by millions in the Philippines and elsewhere and a key driver of the NFT market, managed to lose more than $500 million in a single swindle.<\/p>\n<p><b>&#8216;Like the lottery&#8217;<\/b><\/p>\n<p>&#8220;As soon as you have a new <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>, you immediately have fraudsters circling,&#8221; lawyer Eric Barbry told AFP.<\/p>\n<p>He pointed out that the NFT market had no dedicated regulation so law enforcement agencies are left to cobble together a response using existing frameworks.<\/p>\n<p>Molly White said strong regulation could help eliminate the extreme speculation but that could, in turn, rob NFTs of their major <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eal\u2014that they can bring quick profits.<\/p>\n<p>&#8220;I think less hype would be a good thing\u2014in its current form, NFT trading is enormously risky and probably unwise for the average person,&#8221; she said.<\/p>\n<p>NFTs are often likened to the traditional art market because they have no inherent utility and their prices fluctuated wildly depending on trends and hype.<\/p>\n<p>But Olivier Lerner suggested a different comparison.<\/p>\n<p>&#8220;It&#8217;s like the lottery,&#8221; he said of those seeking big profits from NFTs. &#8220;You play, but you never win.&#8221;\n                                                                                                                        <\/p>\n<hr\/>\n<div class=\"article-main__explore my-4 d-print-none\">\n<p>                                            Nike sues shopping platform StockX over sneaker NFTs\n                                        <\/p><\/div>\n<hr class=\"mb-4\"\/>\n<p class=\"article-main__note mt-4\">\n                                                \u00a9 2022 AFP<\/p>\n<p>                                        <!-- print only --><\/p>\n<div class=\"d-none d-print-block\">\n<p>                                                 <strong>Citation<\/strong>:<br \/>\n                                                 &#8216;Enormously risky&#8217;: How NFTs lost their lustre (2022, May 22)<br \/>\n                                                 retrieved 22 May 2022<br \/>\n                                                 from https:\/\/techxplore.com\/<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>\/2022-05-enormously-risky-nfts-lost-lustre.html<\/p>\n<p>                                            This document is subject to copyright. 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A slew of celebrity endorsements helped inflate a multi-billion dollar bubble around digital tokens over the past year, but cryptocurrencies are crashing and some fear NFTs could be next. NFTs are tokens linked to digital images, &#8220;collectable&#8221; items, avatars&#8230;<\/p>\n","protected":false},"author":1,"featured_media":451007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/scx2.b-cdn.net\/gfx\/news\/2022\/enthusiasts-promote-nf.jpg","fifu_image_alt":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-451006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sciencee"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/451006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=451006"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/451006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/451007"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=451006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=451006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=451006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}