NFTs or non-fungible tokens were once all the rage. They are pretty much popular today, but the success of NFT sales has admittedly been reduced over the past several months. This has to do not only with a bullish crypto market.
It also has to do with the impetus nature of NFT sales, where pretty much anything could be turned into an NFT. NFTs have been truly omnipresent and even the most played roulette site in Australia can find them available.
This is not to say that NFTs are bad or even worthless. To the contrary, they have intrinsic value, but people are becoming more familiar with these digital tokens. Sites such as Roulette77.de try to explain how roulette works.
We will now explain why NFT sales have been falling in numbers and sizes over the past several months.
1. People Not So in a Hurry
The fact is that people are not too worried about missing out on an NFT sale anymore. NFTs were promoted as a now-or-never opportunity, but they are hardly that.
Yes, you may not have the most memorable piece of popular culture immortalized on the blockchain under your name, but with so many cool things happening – this does not truly matter at this point any more.
What is more, people have come to understand that NFT sales will happen again – and again, and again. The sector is thriving, and you never know where the next cool thing is going to come from.
Many consumers have understood that on their own and they are now showing an almost leisurely approach to the whole thing. So, what of it, you may wonder? Well, pretty much that is it – with consumers now acting less on impulse and a bit more rationally, NFT sales have taken a noticeable hit.
2. The Seedy Underbelly of NFTs
Unfortunately, not everyone who is in the NFT business is in there to help you get a cool item of popular culture. Many are actually scammers, and this is bad.
Consumers have found out that for some projects, the sole idea is to rake in as much money as they can and disappear -or as it is known, rug pull in crypto slang. Now, rug pulls can be spotted from afar, and users are definitely getting very good at telling which NFT projects or sales are a little off.
However, even when equipped with this knowledge, many people are simply less enthusiastic about buying NFTs – not least because of the bad experiences in the past.
3. Worries about Custody
Now, it’s true that when you spend six figures to purchase an NFT it’s yours. The issue is that this is still a virtual item and it’s hosted somewhere on the internet. Of course, you can store your NFTs offline, but many people are still worried that if the entire blockchain disappears, they would not be able to really make any good use of it.
Most NFTs are available for download in cold storage, but there seems to be a lack of awareness about who owns these NFTs and how. Custody fears are definitely putting a damper on people’s appetite for buying new NFTs.
4. Too Much Mint
Not least, there has been way too many of these NFTs around – pretty much anyone has pushed into the world of NFT – from video game developers to meme creators, to scammers.
The supply has been running steady with huge volumes of digital assets popping up with every project. This has made it less appealing to buyers to participate, as with so many “unique” items around, suddenly paying a small fortune to obtain a single one didn’t seem wise.
5. Overall Crypto Market Depression
Not least, the crypto market has too taken a hit, which is quite normal. This has made people less inclined to purchase and there is nothing particularly surprising in this.