SNEAK PEEK
- The NFT sector’s current problems and where Vaynerchuck believes it will be in a year’s time are covered in his most recent blog post, which he highlighted through Twitter.
- Vaynerchuck observed there has been a noticeable rise in the (FUD) expressed by the media and social media users.
- He referred back to his assertion from the previous year that “98-99% of NFT ventures” that gained traction during the NFT bubble in 2021 will turn out to be poor investments or “go to zero.”
Vaynerchuck observed that this year had seen a substantial increase in fear, uncertainty, and doubt (FUD) from the media and social media users, who have typically highlighted problems like declining trading volumes and floor pricing.
The reality is that, if you’ve been paying attention, you already know what’s really going on here, and if you’re anything like me, you’re not surprised,” Vaynerchuck asserted.
He referred back to his assertion from the previous year that “98-99% of NFT ventures” that gained traction during the NFT bubble in 2021 will turn out to be poor investments or “go to zero.”
Oversupply, short-term greed, and unreliable operators were the three main problems Vaynerchuck identified as hindering the industry.
The sheer number of “celebrities, influencers, sports leagues, big businesses and individual artists” who hopped on the bandwagon last year, according to Vaynerchuck, was certain to result in supply and demand concerns.
Most are not, he noted, adding that “some have been outstanding ventures managed by true operators who are focused on giving value to their communities.”
There is always a bubble waiting to burst whenever demand cannot and will not keep up with the high level of supply.
Regarding short-term greed, Vaynerchuck contended that the industry has been hindered by too many people rushing to establish companies or trade NFTs in order to make a quick buck, leading to losses from scams and the implosion of projects with weak foundations.
Everyone is too egotistical, moves too quickly, and lacks consideration. Everyone is treating this marathon like a gold rush and a micro sprint, which is why most people will lose, he stated.
Vaynerchuck asserted that there isn’t likely to be another market explosion similar to that of 2021, particularly considering the fact that he doesn’t believe the “macroeconomic picture” will get better in the short term.
Vaynerchuck also compared the cryptocurrency and NFT industries to the internet boom of the late 1990s and early 2000s, during which innumerable businesses failed but the most powerful ones rose to supremacy.
Due to the absurdly high supply, many businesses will fail and disappear, like Pets.com, but some of them—the 1-3% of projects—will succeed and become the Amazons and the eBays. The question is, “How many of you are prepared to put in the necessary research to make wise investing decisions?
