He feigned interest in the NFT

In the first half of the 1600s, everyone in the Netherlands wanted me to tulip bulbs. Demand exceeds supply in a very short time, prices rise and the light bulb is considered investmentsauctions are held at The Hague, Harlem, they begin to reserve still buried bulbs, sell real estate in order to be able to purchase the most valuable ones. Then, suddenly, interest drops, no one appears at auctions, prices for bulbs fall, and florists begin to sell them at any price so as not to lose all their investments. Into the 21st century with NFTnon-fungible token, something very similar happens.

They have monetized the concept of scarcity, Nothing new. People bought digital art on speculation, and then the bubble burst. Not only that The cryptocurrency market collapsed caused by the bankruptcy of Ftx. Within 24 hours, Bankman-Fried’s assets disappeared from $16 billion about a billion dollars (the largest loss percentage for a billionaire in recent economic history) no one showed up for auction then, and from January to September 2022, NFT trading volume fell 97%increasing from a total cost of $17 billion to $466 million.

Now the auction house Sotheby’s has been charged along with Paris Hilton, Justin Bieber and Madonna promotion of non-fungible tokens (NFT) Bored Ape Yacht Club: “Sotheby’s Seal of Approval has played an important role in misleading advertising NFT collections as a legitimate investment,” he said. Sean Masson Scott+Scott Law Firm, which represents the interests of investors. “Unfortunately, the publicized Sotheby’s auction turned out to be a prop.” According to the lawsuit, supposedly celebrities “feigned interest in NFTs for profit

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Bored Ape Yacht Club Collection

The Bored Ape Yacht Club is a collection of 9998 Nft, each a design of an anthropoized ape dressed eccentrically, in 2022 a version with golden fur and a sailor’s hat was sold at $2.8 million. Investors are now blaming what they’promoted the series in bad faith“and that he “manipulated the price of the collection by artificially inflating it.” Scott + Scott explained what the investors involved could lose more than 2 billion dollars. “Unfortunately, the over-publicized Sotheby’s auction turned out to be a sham that served as the starting point for a massive scheme that allegedly scammed investors.”

According to an Artprice survey, the total turnover of non-fungible tokens at auctions has grown from $232 million in 2021 to $13 million. According to the Wall Street Journal, $1.9 billion in 2021 turned into $205 million a year later. These are the numbers describing the explosion of the bubble.

Sotheby’s auction

In September 2021, Sotheby’s made online auction in the metaverse for 101 Bored Ape Yacht Club NFTs The collection was sold to an anonymous buyer for $51.7 millionsurpassing all expectations, estimated profits ranging from 20 to 30 million dollars.

The investment value has decreased, as has the number of buyers willing to bet on the NFT market, in 2022 they were 82%, then the percentage fell to 66%, according toHiscox Online Art Report 2023, and the numbers seem to be going down. On the other hand, last year the NFT market shrank by more than 90% due to the collapse of some cryptocurrencies. “Over the past twelve months, we have seen the NFT market fall, mainly due to the fact that investors have become more cautious about the collapse of some crypto-currency and related companies, such as FTX,” he explained. Eva Peribanes, Director of the Art and Private Department. Cryptocurrency market tracker from CoinGecko now check out digital illustrations of monkeys Starting price $52,445.May 2022 was 400,000.

How non-fungible tokens work

OUR Non-fungible tokens they are tokens, tokenized versions of assets that are traded on the blockchain, the digital chain that allows NFTs to have authenticity. In other words, anyone who buys NFTs has the right to claim that this or that object is their property. Blockchain is a prerequisite. It is similar to a public database, but it is decentralized and immutable. It takes into account all transactions that cannot be reversed, more precisely, if you try to do this, the entire network will be taken down. How to Crack Eggs into Dough After You Don’t Pull Them Out

. Thus, it became possible to redefine the concept of ownership, especially in the art market.