The NFT of the first tweet is on sale for 48 million, but the auction is bidding

After being bought for $ 2.9 million, the NFT of the Twitter founder’s first tweet is put up for auction again. Problem: nobody wants to buy it. The highest bid does not exceed 2 ethers or 5,000 euros.

This is an important story in the NFT world, as it provides some necessary reminders of an industry that relies on both technology with infinite potential, but also a lot of speculation.

This April 14, 2022, an NFT of the first tweet ever published online is on sale: its owner, entrepreneur Sina Estavi, hopes to earn $ 48 million. It acquired it for 2.9 million last year. In a week of auction, however, Sina Estavi received only about twenty bids, the highest of 2 ether, or about 6,000 dollars (5,000 euros). This corresponds to 0.2% of the amount the owner spent a year earlier to acquire this NFT. And half of what he hopes to get.

Twenty offers for the NFT of the first tweet, well below its purchase price

While fashionable, the term NFT (for non-fungible token) is not always very clear. We remind you that this is not a tangible object, but a proof of the digital identity of a virtual object. One can imagine an NFT as an authentication token. Less abstractly, it is a sequence of numbers, recorded on the blockchain (a sort of book of accounts in which everything is recorded and archived publicly, without the control of a centralized body).

What exactly bought Sina Estavi last March, this is the authentication token from the screenshot of Jack Dorsey’s first tweet. Obviously not wanting to keep it for long, he put it back on sale on April 7, announcing that he would donate 50% of the winnings (about $ 25 million according to him) to charity. Dorsey also has replied with a salty message: why not donate 99% of the amount? “, which the owner eventually said he was ready to do if Dorsey” I wanted it “.

The exchange between Estavi and Dorsey

The problem is that the figure obtained so far is ridiculous compared to what the entrepreneur hoped to get from it. In a week the highest bid had not even exceeded $ 280: it was only from an April 13 article by the Coindesk website, which identified this unusual story, that the amount rose to $ 6,000, with a second auction. .

How can an NFT go from $ 2.9 million to $ 6,000? As in the art market, the value of an object depends on many factors, including the originality of the work, its creator, but also the weight of supply and demand. NFTs that sell out at a high price (such as Bored Apes for example) are for example highly sought after because … they are highly sought after. As in the mechanics of the stock market, the value of an asset sometimes increases simply because enough people believe it will increase even more.

Where does the value of an NFT come from?

Two days ago the first exhibition entirely dedicated to NFTs was organized in Paris: Numerama met a large number of entrepreneurs there (masculine is not used here as a grammatical rule; NFTs are preferred by men) convinced that NFTs are ” a revolution “, forming a large community of self-styled” utopians “.

The technology for recording data on the blockchain could, in itself, allow huge digital advances, particularly in terms of security, or remuneration of the artists – the show Le Meilleur des Mondes on France Culture, of which Numerama writes a weekly report , he also recently welcomed an artist who has seen his profits increase tenfold since starting in NFT.

However, the environment is still full, for the moment, of individuals driven by opportunism and the pursuit of profit: many people invest in the NFT environment for fear of missing the next digital change and missing the opportunity to weigh in a network. of the future, paradoxically touted as a place of horizontality. As with the Metaverse, the NFT world exists because it is said to exist. It may be the beginning of a revolution, and perhaps it is necessary to go through speculation and excessive investment in certain superficial projects so that, in a few years, something solid and serious. However, a virtual token traded for $ 3 million has just lost 99.8% of its value in one year, demonstrating how much the future is still and always a story of faith.

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