The non-fungible token (NFT) of Jack Dorsey’s first tweet is struggling to sell, but this isn’t surprising says Dr Lil Read, senior analyst in the thematic research team at GlobalData.
“Though there has been plenty of hype around NFTs in the last year, the market is still young and immature. It’s possible that Dorsey’s first tweet will eventually be worth a fortune, but it’s doubtful that Sina Estavi, who purchased the tweet, would recoup the $2,9-million he paid for it if sold today,” Dr Read says.
“As NFT use cases mature and become embedded in Web3 (the next iteration of the internet), non-NFT-fanatics will realise the potential of NFTs as the next-generation QR code that doesn’t suffer from laughably easy duplication.”
Amrit Dhami, associate analyst in the thematic research team at GlobalData, adds: “NFTs that are part of wider collections and have a trading card or collectible feel, like Bored Ape Yacht Club NFTs, generate more hype and are easier to trade than those representing individual digital assets. NFT collections are more likely to lead to exclusive virtual communities, with high-profile celebrities like Eminem, Madonna, and Neymar currently parading their Bored Ape NFTs as their Twitter profile picture. NFTs of tweets, however iconic, don’t possess the same impact or social kudos.
“Social media has played an important role in propagating the hype around NFT communities by offering a platform for members to flaunt their expensive digital assets. This has started to make NFTs a more mainstream and desirable concept. Meta’s announcement that NFTs were coming to Instagram renewed the excitement and injected longevity into the concept of NFTs.”