But artist Badfroot says the current crypto crash isn't the end of NFTs.
(Image credit: Badfroot)
The crypto crash that has seen one token, Luna, lose 98% of their value is the biggest downturn since 2018, but some NFTs are already seeing a bounce back. Projects such as Bored Ape Yacht Club, Moonbirds, Mutant Ape Yacht Club, and Doodles have all had double-digit percentage increases today. So are NFTs dead or are they crash-proof?
Badfroot, aka Jack Davidson, the founder of NFT success Skullkids says, "no, I don't think NFTs are dead. No." This comes after the reported NFT crash has seen transactions drop by 92% since this time last year, though these stats are debated. Non-fungible tokens are a way to create rarity in digital files by registering them on a blockchain, you can find out how to make and sell an NFT in our guide.
Davidson is currently launching his latest NFT project, Skullkids: Generations, and is buoyant about the state of the market. His view is clear, the recent Yuga Labs sale of Otherdeeds NFTs burnt $300 million of Ethereum out of supply and many people "got burned in the gas wars," and this means the market needs time to "take a breath and have time to recover".
Badfroot aka Jack Davidson believes NFTs are still the future of art but people need to manage their expectations (Image credit: Badfoot)
The successful NFT artist, who turned his graffiti art into an NFT art empire, says "This place is volatile as hell [and] negative energy is easier to be contagious than positive energy […] people want to see the world in flames. People want to see chaos happening."
He says the last two weeks have been some of the most successful in his time creating NFT art. Which marries with other projects such as Moonbirds. Davidson has some rules that determine if an NFT will succeed, including maintaining a good community, offering utility and value alongside the art, and being open and honest about what buyers can expect.
I'm down so bad [and] I'm not worried about it (Jack Davidson)
"When I see people's expectations not being managed, that's because the sales team or the team behind the project sucks," says Davidson. "If people come in here spending thousands of dollars and expecting ten-times their money overnight, like, that's probably not going to happen anymore."
Davidson's optimism for NFTs isn't dampened even as he tells me he's lost money in the current crash. "Like, I'm down this week, I'm down so bad, but I know it's the nature of the beast and I'm not worried about it," he laughs. "You have to have an Iron Stomach to come here."
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Fundamentally the future of NFTs could lay in a realistic approach to this art, and newcomers shouldn't expect to get rich quickly overnight. Davidson's best advice is to manage expectations and support artists that have clear and attainable visions, as over time these will hold value.
Disclaimer: The opinions expressed in the article are for general informational purposes only and are not intended to provide specific financial or investment advice or recommendations for any individual for any investment product. The article is only intended to provide general information and opinions about NFTs. The views reflected in this article are subject to change at any time without notice.
Ian Dean is Editor, Digital Arts & 3D at Creative Bloq, and the former editor of many leading magazines. These titles included ImagineFX, 3D World and video game titles Play and Official PlayStation Magazine. Ian launched Xbox magazine X360 and edited PlayStation World. For Creative Bloq, Ian combines his experiences to bring the latest news on digital art, VFX and video games and tech, and in his spare time he doodles in Procreate, ArtRage, and Rebelle while finding time to play Xbox and PS5.
