Rolling Stone magazine yesterday proclaimed that non-fungible tokens (NFTs) are “finally totally worthless,” quoting a dappGambl study as the reason for “why you don’t see people hawking ugly cartoon apes on the internet as much anymore”.
The study found that up to 96% of NFTs have little value. The authors of the report, entitled ‘Dead NFTs: The Evolving Landscape of the NFT Market‘, claimed that out of 73,257 NFT collections, 69,795 had a market cap of zero Ether (ETH).
The mag added: “In practical terms, that means 95 percent of NFTs wouldn’t fetch a penny today — a spectacular crash for assets that reached a trading volume of $17 billion amid a frenzied bull market in 2021. The study estimates that some 23 million investors own these tokens of no practical use or value.
“What’s more, supply vastly outstripped demand for NFTs. Just 21 percent of the collections included in the study can claim full ownership, meaning around four out of every five collections remains unsold. With buyers becoming more discerning, the report notes, “projects that lack clear use cases, compelling narratives, or genuine artistic value are finding it increasingly difficult to attract attention and sales.”
According to dappGambl researchers, the market may never see an NFT boom like 2021/22, but that “the assets may evolve in a way to survive the wipeout”.
They add: “For example, they could be given a specific function, becoming a pass for special event access or a virtual item to be purchased and traded in video games.”
Meanwhile, the crypto community on X has hit back at the Rolling Stone article by linking previous coverage from the magazine that supported the same assets they’re now debasing.
Over on Reddit, reaction to the mag has been mixed. According to one Redditor: “I wouldn’t say totally worthless. You can still look at the jpgs and remember the good times, and that must be worth something.”