The NFT Craze Continues: Million Dollar Tweets?

The idea behind NFTs are simple, buy and sell ownership of unique digital items, which can be tracked using the blockchain. The relevance is in its rarity.

By
Wilfred Victor
on
March 8, 2021
Category:
Breaking News

Introduction

Non-fungible tokens, popularly known as NFTs, seem to be taking center stage of the blockchain community’s attention. A lot hypes has fourmed and it’s starting to look outrageous. On the one hand, it shows how the community has developed and matured with blockchain features and ecosystems. On the other hand, it has started to look outrageous when Tweets are being sold for ridiculous prices. Is this sustainable?


What are NFTs?

Non-fungible tokens, unlike the fungible ones, are tokens that are not divisible or splittable, Most are deployed on the Ethereum blockchain, which hosts more than 50% of all NFTs available, followed closely by the Wax blockchain, another NFT focused chain. Its relevance is in its concepts like arts, artifacts, gaming, and inventories. Right now, NFT’s are flying off the shelves, with NFT Tweets selling for over seven figures.



Jack Dorsey NFT Tweet

The NFT Tweet that triggered the recent NFT Tweet-craze is attributed to famed Twitter CEO Jack Dorsey, who reportedly attempted to sell his first Tweet as an NFT - a digital good that lives on the Ethereum blockchain.

The famous Tweet, which was Tweeted on March 21, 2016, has gathered a massive impression with 130k retweets and 151k likes. Despite the Tweet being available for the public right from when it was first Tweeted, Jack is attempting to sell through a platform called valuables - an NFT marketplace. This act has set off a chain of reaction, and the current craze for Tweet NFTs has just begun.


A Chain Reaction

Following Justin Sun, tech entrepreneur and Tron blockchain owner, bid $2 Million for Jack Dorsey’s first Tweet. Tweet NFTs began to gain serious attention, with many crypto influencers attempting to sell their Tweets of specific periods. The latest Tweet NFTs sold were Binance CEO CZ Tweet, which was auctioned and sold for 4 ETH, approximately $6600.

Taking a quick look through v.cent.co, we could spot various Tweets up for sale.



How Does This Work?

A Tweet creator decides if they would like to mint it on the blockchain, creating a 1-on-1 autographed version. Before the author accepts an offer, anyone can counter the offer and the highest bid gets the minted Tweet.


Mixed Reactions

A lot of people believe that NFTs are the next rave of the market. But not without mixed reactions that have trailed the Tweet NFTs activity on Twitter. A couple of users have expressed enthusiasm in the process and have actively declared their support for what seems to be the next rave of the bull market;

Others have shown utmost disgust, calling it a waste of money, especially with its high price tag.

Whatever the reactions, NFTs in any form: Tweet, art, artifacts, or gaming are a concept here to stay.


The Downside

NFTs are immutable, but fake artifacts, arts, and collectibles are starting to become commonplace. Rarity and scarcity are the ideas that drive the adoption of NFTs, but a complete deviation of the original intention is becoming quite prevalent too. For example, people are beginning to create NFTs, sell their Tweets only for the monetary value and not for the intrinsic value such “valuable” should possess ideally. It defeats the original purpose of NFTs, which are created firstly for their rarity, value, and applications.


Concluding Thoughts

The idea behind NFT’s are novel, and a lot of projects are starting to adopt and integrate them into their roadmaps. Whole new projects and companies are beginning to implement forms of NFTs in their goals and values.

The idea behind NFTs are simple, buy and sell ownership of unique digital items, which can be tracked using the blockchain. The relevance is in its rarity. The fact that no two copies of the same idea can ever be made or duplicated.

The downside may not come with a heavy impact, but it could cause a loss of value of what NFTs are meant to achieve.  This hype can result in abuse of the core purpose, eventually leading to a loss of money when the hype dies down. Therefore, users should understand the asset class they are looking forward to owning correctly for its primary purpose and not solely for the speculation on future monetary and resale value.


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Wilfred Victor

Ace finds himself as a blockchain enthusiast who is focused on growing with the entire crypto sector. He is an energetic and passionate writer who believes that all things are achievable.