Has the NFT bubble finally popped? After previously purchasing Jack Dorsey's first ever tweet NFT for $2.9 million, the seller was hoping to get $50 million at an auction, but only received a disappointing initial top bid of just $280, which resulted in an extended deadline.
Seller of Jack Dorsey's First Tweet NFT Wanted $50 Million
According to the story by CNET, while some NFT collections like CryptoPunks are managing to fetch $150,000 despite being free to mint in 2017 or the initial $250 price for a Bored Ape Yacht Club in 2021 before demanding above $300,000, it seems like not all NFTs balloon in price.
Jack Dorsey's first tweet ever was sold as an NFT in 2021 for $2.9 million and the buyer, Sina Estavi, a crypto entrepreneur, decided to place it on auction. According to his tweet, he expected to rake in $50 million at the end of the auction, saying he would donate $25 million to charity.
why not 99% of it?
— jack (@jack) April 7, 2022
Initial Highest Offer at Just $280
Despite his optimism and confidence, CoinDesk reported that the tweet NFT only gained its initial highest bid of just 0.09 Ether or $280. Despite being an auction, Estavi said that he is still looking for more bids and decided to extend the deadline.
While he was able to get a higher offer, the next highest bid only sat at 1.5 ether or $4,631. Although Estavi was able to gain another top bid, the mere $4,000 is nowhere near his initial purchase price for the tweet NFT at $2.9 million.
Latest Highest Offer at Just $6,232.96
What makes matters more daunting is that it is still extremely far from the initial $50 million that he had initially hoped for. Estavi told CoinDesk that although the deadline was set, should he get a good offer, he might still accept it or he might never sell.
As of press time, the highest offer on OpenSea sits at just 2 Ether or about $6,232.96. The lowest bid for the NFT, however, happened 24 days ago from TUNAS expressing intent to buy the tweet NFT for just 0.0019 Ether or $5.92.
Difference Between NFTs and Other Assets
This is an example of the extremely risky NFT market and although Twitter's former CEO and cofounder's first tweet on the platform does have some significance since it commemorates the birth of the social media, the market seems not as interested in purchasing it.
Unlike assets, the value of NFTs rely solely on social sentiment meaning its price is reliant on how much the market is willing to pay for it. Assets, on the other hand, often hold an intrinsic value like real estate where if it cannot be sold or sold at a good price, it can still potentially be used for cash flow (depending on the real estate).
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Written by Urian B.
