Jack Dorsey, a social media mogul, has seen the value of his first NFT tweet plummet to under $4. In March 2021, Dorsey auctioned the tweet. The brief bidding war involved Justin Sun, the founder of TRON, and Sina Estavi, the CEO of Bridge Oracle. Eventually, the tweet was sold for a staggering $2.9 million.
Sina Estavi, an Iranian crypto entrepreneur, caused a sensation by acquiring Jack Dorsey’s initial tweet as an NFT. Estavi firmly believed in the exceptional value of the asset and its connection to a significant player like Twitter. He triumphed with the highly sought-after post, wherein the ex-Twitter CEO announced his act of “just setting up” his “twttr”.
Nonetheless, the NFT’s value has since plummeted to a mere $3.77. Estavi faced an uphill battle when he reintroduced the NFT to the market in 2022. The crypto entrepreneur had attached a hefty price tag of $48 million. Despite his noble intention of donating half the proceeds to charity, his efforts proved futile. Meager bids trickled in, reaching a low of just $280 and a high of only $6,800. This outcome left Estavi disheartened, and he reportedly contemplated holding onto the NFT indefinitely, refusing to sell.
While certain NFT-like applications, such as Bitcoin Ordinals, store the digital asset itself on the blockchain, Ethereum NFTs often include a URL that points to the file on a server. A common risk is that the link may decay if the server’s owner relocates or erases the file. In the case of Dorsey’s tweet, the NFT will indicate a valid URL only for as long as Twitter’s servers remain operational.
NFT Investors Are Taking Huge Hits
This tale is not an isolated occurrence; the crypto market, as a whole, is experiencing a significant downturn. The NFT sector, in particular, is bearing the brunt of this decline. Once-thriving digital assets, like Bored Apes and Crypto Punks, have witnessed a staggering 70% drop in their floor prices since their peak.
The crypto winter inflicted substantial devaluation upon the NFTs of various celebrities. Azuki NFTs belonging to YouTube personality Logan Paul experienced a sharp decline. Also, Justin Bieber’s BAYC NFT, purchased for $1.3 million, now holds a value of approximately $60,000.
The once-vibrant realm of NFTs is facing a severe blow, with bids for these digital artworks plummeting precipitously.