December 19, 2022
By Sharan Kaur Phillora
The Vee Friends inventor predicted supply and demand challenges due to the number of celebrities, corporations, and artists joining NFT. Oversupply, greed, and poor projects, according to famous entrepreneur and NFT proponent Gary Vaynerchuck (Gary Vee), caused the NFT market to crash last year.
Here’s what we know:
On December 12, Vaynerchuck tweeted a link to his most recent blog post, which discusses the current issues in the NFT industry and where he feels it will go in the coming year.
Vaynerchuck, commenting on the state of the market, emphasized that there has been a large amount of fear, uncertainty, and doubt (FUD) from the media and social media users this year, with reasons such as declining trading volumes and floor pricing being regularly highlighted.
Vaynerchuck argued, “The truth is, if you’ve been paying attention, you know what’s really happening here – and if you’re like me, you’re not surprised.” He pointed back to a statement he made a year ago in which he asserted that “98-99% of NFT firms” that gained traction during the NFT bubble in 2021 would prove to be terrible investments or “go to zero.”
Vaynerchuck blamed overstock, short-term greed, and incompetent operators for this forecast. He said last year’s influx of “celebrities, influencers, sports leagues, huge corporations and individual artists” caused overstock.
In terms of short-term greed, the sector has been impeded by too many individuals rushing to make a fast profit from creating companies or trading NFTs, resulting in losses to scammers and enterprises with bad fundamentals implosion.
He expressed that since anybody can establish an NFT project, “there’s suddenly a big number of individuals with no actual expertise of things like business, long-term community development, culture, day-to-day operation of a workforce, and generating demand.”
When asked about 2023 predictions, he stated that the “macroeconomic environment” won’t turn optimistic in 2023, making another market boom improbable. Moreover, Vaynerchuck compared the crypto and NFT industries to the internet boom of the late 1990s and early 2000s, during which many businesses failed, but the strongest rose to prominence.
He ended with positive sentiment, saying that “NFTs aren’t going anywhere. I still believe they’re here to stay – forever.”
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
