NFTs and The Greater Fool Theory of Investing
Years ago, my chairman became an NFT enthusiast. At one point, he assured me “I’m not joking.” I responded: “That’s what I’m afraid of.”
NFTs are a manifestation of The Greater Fool Theory of Investing. Like disco and yacht rock, they had their day. But eventually, the fools are left holding the bag:
“Flash forward a year, and the vast majority of NFTs are now virtually worthless, according to a report by dappGambl. An NFT of the first ever tweet – from former Twitter CEO Jack Dorsey that read “just setting up my twittr” – that sold for £2.3 million in 2021, is now worth around £1,200. In August, it was reported that a group of collectors who had invested in Bored Ape NFTs were filing a lawsuit against the numerous celebrities (including Fallon, Hilton, Justin Bieber and the auction house Sotheby’s) who they believe had falsely marketed the artworks and intentionally inflated their price.”
Click the link to read about five NFT “investors”: what went wrong, what they’re going to do next, and how they feel about the future of NFTs.
Post mortem on NFTs
NFTs are a manifestation of The Greater Fool Theory of Investing. Like disco and yacht rock, they had their day. But eventually, the fools are left holding the bag:
“Flash forward a year, and the vast majority of NFTs are now virtually worthless, according to a report by dappGambl. An NFT of the first ever tweet – from former Twitter CEO Jack Dorsey that read “just setting up my twittr” – that sold for £2.3 million in 2021, is now worth around £1,200. In August, it was reported that a group of collectors who had invested in Bored Ape NFTs were filing a lawsuit against the numerous celebrities (including Fallon, Hilton, Justin Bieber and the auction house Sotheby’s) who they believe had falsely marketed the artworks and intentionally inflated their price.”
Click the link to read about five NFT “investors”: what went wrong, what they’re going to do next, and how they feel about the future of NFTs.
Post mortem on NFTs
For those who do not know what a NFT is (like me): NFT is short for non-fungible token. Thank you, no NFTs for me!
Note that owning an NFT doesn’t allow you to prevent other people from duplicating (or even selling duplicates) of the image. It is only a block chain version of buying naming rights to a star, from some random star “registration” company. I have zero sympathy for people who lose money trying to sell something worthless to a greater fool.
NFT’s, just another indicator that there is too much money at the top.