Popular entrepreneur and NFT advocate Gary Vaynerchuck (also known as Gary Vee) says oversupply, greed and substandard projects are the main reasons why the NFT market has plummeted over the past year. claimed to be.
On December 12th, Vaynerchuck highlighted his latest blog. Position Via Twitter exploring current issues in the NFT sector and where he thinks the direction for next year will be.
I hope this article helps some of you. Feedback is humbling. Why I said 97-99% of NFTs go to zero – Gary Vaynerchuk https://t.co/BmhO7OUGdH
— Gary Vaynerchuk (@garyvee) December 11, 2022
Commenting on market conditions, Vaynerchuk highlighted that there has been a significant amount of Fear, Uncertainty and Doubt (FUD) this year from media and social media users. decrease in trading volume When lowest price.
“The truth is, if you’re paying attention, you know what’s really going on here. And if you’re like me, you won’t be surprised.
He echoes a prediction he made a year ago when he claimed that “98-99% of NFT projects” that gained attention during the 2021 NFT boom would end up being bad investments or “zero.” pointed out.
Problems with NFTs
In explaining this forecast, Vaynerchuck highlighted three key issues hindering the market.
As for oversupply, Vaynerchuk argued that the multitude of “celebrities, influencers, sports leagues, big brands and individual artists” who jumped on the bandwagon last year would create supply and demand problems.
“There are some great projects led by true operators who are focused on providing value to the community, but most are not,” he wrote, adding:
“Demand has not and cannot keep up with that extraordinary level of supply. Whenever that happens, there is a bubble waiting to burst.”
As for short-term greed, Vaynerchuck said the industry has been hampered by too many people trying to make quick money by launching projects and trading NFTs, resulting in a collapse of fundamentals. Allegedly leading to fraud and project loss.
“People are too selfish, too fast, too uncaring. It’s a marathon, but everyone treats it like a micro sprint or a gold rush, and most people lose.” ‘ he wrote.
Blockchain monitoring software company DEXterlab in June polled From late May to early June, over 1,300 people took to Twitter to talk about their NFT buying habits. He found that 64.3% of respondents said they bought NFTs “to make money,” while less than 42%. was making a profit time to vote.
On the other hand, in terms of bad projects, because anyone can easily launch an NFT project, “currently there are huge numbers of people who have no real knowledge about business, long-term community building, culture, daily life, etc. there is,” he suggested. Manipulate staff and create demand.
Where will NFTs go in 2023?
Looking ahead to 2023, Vaynerchuck argued that another market boom like that of 2021 is unlikely, especially since he doesn’t expect the “macroeconomic situation” to turn bullish any time soon.
Additionally, Vaynerchuck likened the cryptocurrency and NFT sector to the internet boom of the late 1990s and early 2000s.
“The sheer volume of supply will cause many projects to go bankrupt and go to zero like Pets.com, but 1-3% of those projects will go to Amazons and eBays. It’s about how many people are willing to do the homework required to make an investment.”
Vaynerchuck jumped into NFT in early 2021, launching his debut project VeeFriends in May of that year. invested in many projects Since then.according to data At $241.8 million, CryptoSlam’s VeeFriends is the 20th highest ranked NFT collection of all time.