The NFT in the first tweet is for sale for 48 million, but the bid is up

After being bought for $2.9 million, the NFT from the Twitter founder’s first tweet is 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 world of NFTs, because it provides some much-needed reminders about an industry that is built on both technology with infinite potential and a lot of speculation.

This April 14, 2022, an NFT of the first tweet published on the internet goes on sale: its owner, the businesswoman Sina Estavi, expects to earn $48 million. Illinois acquired it for 2.9 million last year. However, in one auction week, Sina Estavi only received about twenty bids, the highest of 2 ethers, or around $6,000 (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 you expect to get.

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

Although fashionable, the term NFT (pour non-fungible token) is not always very clear. As a reminder, this is not a tangible object, but rather 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 kind of ledger where everything is publicly recorded and stored, without the control of a centralized body).

what exactly do i buy 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 up for sale again on April 7th and announced that he would donate 50% of the profits (about $25 million according to him) to charity. Dorsey also has answered with a salty message: Why not donate 99% of the sum? “which the owner finally said he was ready to do if Dorsey” I wanted him ».

The exchange between Estavi and Dorsey

The problem is that the amount obtained so far is ridiculous compared to what the entrepreneur expected to get out of it. Within a week, the highest bid hadn’t even gone above $280: only since an article on April 13, Coindesk sitewho noticed this unusual story, that the amount increased 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 are bought at exorbitant prices (like the Bored Apes for example) are, for example, highly sought after because… they are highly sought after. As in the mechanisms of the stock market, the value of an asset sometimes rises simply because enough people believe that it will rise even more.

Where does the value of an NFT come from?

Two days ago it was organized in Paris, the first show entirely dedicated to NFT : Numerama met many entrepreneurs there (the masculine is not used here as a grammatical rule; NFTs are mostly favored by men) convinced that NFTs are ” A revolution “, forming a large community of self-proclaimed ” utopian ».

Blockchain data logging technology could, in itself, enable very big digital advances, in terms of security in particular, or the remuneration of artists: the spectacle. Brave New World on the culture of France, where Numerama writes a weekly columnhas also recently welcomed an artist who has seen his profits grow tenfold since starting at NFT.

However, the environment is still full, at the moment, of people driven by opportunism and profit-seeking: many people invest in the NFT environment for fear of missing out on the next digital change and losing the opportunity to weigh in on a web of the future. , paradoxically promoted as a place of horizontality. I like it for the Metaverse, the world of NFTs exists because it is said to exist. It may be the beginning of a revolution, and we may have to go through speculation and excessive investment in certain superficial projects so that, in a few years, it is something solid and serious. Still, a virtual token that traded for $3 million just lost 99.8% of its value in a year, showing how much the future is still and always a story of faith.

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