Hey Jessceptics
I've had a rant about NFT's previously, and the more I watch this unfold, the more of an absolute shit-storm I see coming. As the prices of NFT and the convenient public increases, you're seeing a money-hungry swarm of "artists" descend on NFT platforms ready to make their first crypto millions.
We're saving the art world one NFT at a time, giving back their creative rights, cutting out the middle man, bla bla bla bla bla. I imagine some people believe this but seriously has anyone taken the time to look at these FOR-PROFIT VC funded dapps that are NFT platforms?
They're just spinning up these services out of the goodness of their own hearts.
The starving artists will be no more right? NFT's are here to bring value to creative work; yes, I've heard the altruistic pitch all before, and man, what a load of horse shit?
Whenever I hear this altruistic bile being spewed, I know it's just to obfuscate the absolute garbage that is sold as revolutionary. It's like asking someone why did you steal grandmas purse and they like me? Steal? Look at all these bibles in my room; how could I steal?
I've seen this all before; the stronger the altruistic pitch, the smellier the turd you get at the end. The ICO market was full of tokens to save the whales, tokens to solve gender pay issues, tokens for this and that.
NFT's right now is just a new wrapper for the same old shit.
I have absolutely nothing against going on and making money, and by all means, you artists do your thing, get your money, honey. But don't give me this pitch that we're doing the world a favour man, you're just a money-hungry little shit like the rest of us, and NFT's are your gig of choice.
Just because it's art involved doesn't make it all the nobler.
Now, as more people flock into NFT's to get their piece of the digital pie, they're associating their wallets, identities and work with a network that could be fraught with potential scandal along the way.
Remember I mentioned these platforms have a profit motive? Well, when you have a profit motive, you tend to let a lot of things slide for the sake of mo' money.
As they say mo' money, more problems, but they don't say WEN problems arise, usually with any frenzy the good effects hit first, now that we're all good and coked up and on a high. The comedown eventually shows up, and man, is it a brutal cold turkey.
The silent crash
NFT's are a new market, and pricing anything will be a topsy turvy thrill ride; those that have benefitted from this mini gold rush will naturally be biased towards its value, but any market has two sides. The whole appeal of NFT art is that it is "rate" and illiquid. There are only a few available, so illiquidity means prices are bid up as people want these items.
However, the market also has another side; I guess people don't realise prices can go down when all you hear are prices go up. When illiquid assets are dumped on the market, there is very little by way of resistance, and off-loading these things can crash prices faster than they would fungible tokens.
You can easily see prices drop by more than half in an overnight spell in an illiquid market.[3]
But that's dumb; why would anyone sell at such low prices? Gosh, can you wait? I am getting there. For the same reason, people are buying these things at high prices, making sense n a second.
The end game
In the end, there is no end up, this thing will continue in different forms, but this current end game, I see playing out a lot differently. NTF's have become quite the market for wash traders [2] to buy and sell assets between each other and create a record of losses they can use to write off against their gains in other trades and thus claim tax benefits based on blockchain data.
We're also hearing rumours of people using NFT's as a way of laundering funds through an NFT, so they send tainted coins to buy an NFT and then sell it for non-tainted coins.
[1] I see a big call to having these NFT markets regulated, and since few of them are actually decentralised, if any, they will have to comply or be put out of business. Once AML/CFT regulations come to NFT platforms, you can bet your arse the amount of capital flowing through to it will dry up in a major way.
There will be a market for art NFT's, but this big hype will crash and bring about a forced repricing. There will be NFT DEX's that show up, and people will continue in that fashion, but this trend, I think, will hit its peak in 2021 the same way ICO's peaked out in 2017.
Sources:
- [1] - cryptonews.com
- [2] - techcrunch.com
- [3] - cointelegraph.com
Have your say
What do you good people of HIVE think?
So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."
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