According to the creator of VeeFriends, the number of celebrities, brands, and artists jumping on the NFT bandwagon will cause a supply and demand problem.
Prominent investor and NFT advocate Gary Vaynerchuck – also known as Gary Vee – has said that over-indulgence, greed, and bad services are the main reasons why the NFT market has fallen so much.
On December 12, Vaynerchuck took to Twitter to reveal his new blog post, which examines what’s happening now in the NFT industry and where he thinks it’s headed next year.
Commenting on the state of the market, Vaynerchuck said there has been a lot of fear, uncertainty, and doubt (FUD) from traditional media and social media this year, often featuring the words such as sales declines and declines. down. price. “The truth is, if you’re paying attention, you know what’s really going on here — and if you’re anything like me, you’re not surprised,” Vaynerchuck explained.
He recalled a prediction he made a year earlier, in which he said that “98-99% of NFT projects” that gained traction during the NFT boom in 2021 will end up being large investments or “failing” or “empty”.
Problems with NFT
In explaining this forecast, Vaynerchuck pointed to three key issues driving the stock market: oversupply, short-term greed, and mediocre buyers. Regarding obesity, Vaynerchuck argued that a large number of “celebrities, actors, athletes, big brands, and artists” have jumped on the bandwagon in the past year. can cause supply problems.
“Some have been amazing projects led by good people who are focused on creating value for their communities – many are not,” he wrote, adding that:
“Demand isn’t going to be able to support this extraordinary level of supply, and every time that happens, there’s a bubble waiting to burst.”
Regarding short-term greed, Vaynerchuck argued that the company has prevented many people who rush to make quick money by starting a service or trading NFTs, causing losses due to fraud and illegal operations base. “Everyone is selfish, hasty, and thoughtless. It is a marathon, but everyone considers it as a small sprint for gold, so many will lose,” he said. wrote. In June, blockchain software company DEXterlab surveyed more than 1,300 people on Twitter about their NFT buying habits during the period from late May to early June. He found that while 64.3% of respondents said they bought NFTs “to make money”, less than 42% had made a profit during the survey. Meanwhile, on the issue of bad services, Vaynerchuck suggested that since anyone can start an NFT service, “there are now a lot of people who don’t have a good knowledge of things like business, and -build a long-term community, culture, daily work. of the employee and create demand.
Where is NFT headed in 2023?
Looking ahead to 2023, Vaynerchuck argued that it is unlikely that there will be another market boom like that in 2021, especially since he does not see the “bottom line” turning in time.
In addition, Vaynerchuck compared crypto and NFT companies to the Internet boom of the late 1990s and early 2000s, when many companies collapsed when the most powerful took over. “Because of the ridiculous amount of money, many services will fall to zero like Pets.com, but there will be some – in 1-3% of services – which will be Amazon and eBay. The main thing is … how many of you are willing to do the homework it takes to make a good investment?”
Vaynerchuck got into NFTs back in early 2021 and went on to launch his debut project VeeFriends in May of that year. He has been involved in many projects since then. According to data from CryptoSlam, VeeFriends is a collection of 20 NFTs in terms of all-time market value, at $241.8.AQ
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