From millions to mere cents: The meltdown of Jack Dorsey’s first tweet NFT
In a sobering reminder of the fickleness of fortune, the Non-Fungible Token (NFT) of Jack Dorsey’s inaugural tweet has plummeted in value from a staggering $2.9 million to less than $4. Due to recent news about the NFT, it has now surged from $4 to roughly $2,000.
The high-flying purchase crashes
The Iranian crypto entrepreneur Sina Estavi made a splash in the world of digital assets back in 2021 when he snagged the first tweet from Twitter’s co-founder, Jack Dorsey, as an NFT. Estavi, convinced of the token’s unique worth and its association with a powerhouse like Twitter, shelled out a cool $2.9 million for the digital keepsake.
Fast forward two years and the tables have turned drastically. According to recent data from OpenSea, the highest bid for the same NFT last week stood at a meager $3.77, revealing a sharp depreciation in value perception.
Fruitless attempt to sell
From the moment Estavi put the NFT back on the market in 2022 with a price tag of $48 million, he faced an uphill battle. Despite his noble intention of donating half the proceeds to charity, his efforts proved in vain as the bids rolled in – the lowest a paltry $280 and the highest only $6,800. This led to a disillusioned Estavi reportedly contemplating never selling the NFT.
This story isn’t an isolated incident. The crypto market, in general, is undergoing a substantial downturn, with the NFT sector feeling the brunt of the decline. Once-buzzing digital assets like Bored Apes and Crypto Punks have seen their floor prices plummet by over 70% since their zenith. It seems that the once vibrant world of NFTs is taking a substantial hit, with bids for these digital pieces of art dropping precipitously.
Sound investment or hollow hype?
The drastic downfall of Dorsey’s NFT tweet brings to light the wider debate on NFTs’ viability as a form of investment. Critics have long argued that NFTs, even those associated with influential figures, are far from sound investments. As this dramatic downfall illustrates, the exciting world of NFTs can be a high-stakes gamble, and those looking to cash in on digital art should proceed with caution.
