Friday, December 3

Most NFTs aren’t worth a penny (at least, for now): science says so

The phenomenon of the NFTs seems to conquer everything. Conquer the world of cinema, football, video games or the internet. Its progress seems unstoppable, and all those who bet on this technology seem to be clear that this is the future of art and digital assets and content.

That, of course, has raised high expectations about NFTs to invest in and as a way to potentially earn a lot of money, but the truth is that most NFTs have little value. We do not say it, a recent scientific study says it.

Only a select few make money (for now)

The celebrated case of digital artist Beeple is continually put up as a reminder of where NFTs can go. That he sold his NFT for $ 69 million at Christie’s auction house was a real bombshell, but that was rather the exception that confirms the rule.

A study published by The Alan Turing Institute and conducted by researchers at the University of London tried to study whether these assets they really have the value that many assign to them.

Andrea Baronchelli, associate professor of mathematics, and Matthieu Nadini, data scientist, analyzed the sale of 4.7 million NFTs that were exchanged between 500,000 buyers and sellers and that represented almost 1 billion dollars in transactions.

Its conclusion? Most NFTs are worthless. Only 1% of all those tested sold for more than $ 1,500, and 75% sold for $ 15 or less. In fact, they explained “most of these assets don’t even manage to be sold, so they didn’t even make it into our analysis.”

That means the vast majority of NFTs did not even become part of those percentages, which would be much lower if you took into account all those NFTs that are waiting for someone to buy them.

For Mauro Martino, head of the Visual AI Lab at IBM, “people spend money to create the NFT and there it is. It would be difficult to suggest to an artist friend that they get into this segment to get rich, because very few people can make a profit in this market“.

Martino has also been around for a year “mapping the NFT revolution“in a project that resulted in a video and an article in the prestigious Nature. In his opinion, it is not likely that NFTs can make you rich, but studying this technology he realized that NFTs are here to stay.

Via | FastCompany

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