Are NFTs the new Titanic, which is on the brink to sink!? Jack Dorseys NFT gets a reality check!

You might have heard that ‘it’s crazy how much things can change in a year’! This saying is quite apt for the story, which we will decode in this article.

You might have heard that ‘it’s crazy how much things can change in a year’! This saying is quite apt for the story, which we will decode in this article.   

In December 2020, the Founder of Twitter Jack Dorsey created a non-fungible token (NFT) out of his first-ever Twitter post.    

Interestingly, a couple of months later, the NFT was sold for a stunning USD 2.9 million. However, in a recent auction, no one bid more than USD 280 for it. As a result, the value of NFT plummeted by a whopping 99 per cent.   

Initially, Dorsey’s NFT did not garner much attention as some investors bid about a few thousand dollars in December 2020- a time when NFTs were not paparazzi of the financial world. However, fast forward to March 2021, the popularity of NFT hit the roof and an Iranian crypto entrepreneur Sina Estavi got swept up in the frenzy, buying Dorsey’s NFT for a mammoth sum of USD 2.9 million.   

Sina Estavi told Forbes that he paid such a hefty sum due to the NFT’s uniqueness and association with such a prestigious company as Twitter. Well, this certainly would have raised the eyebrows but the frenzy in which NFTs were trading would have marked this as a steal deal. Only to find out later on that it turned out to be a bubble. Because, on April 5, Sina Estavi placed the NFT for auction at about USD 48 million, and the auction, which closed on Wednesday 13, 2022, saw only seven total offers ranging from 0.09 ETH (USD 277) to 0.0019 ETH (almost USD 6).  

Earlier, Sina Estavi had announced on Twitter that he wished to pledge 50 per cent of its proceeds to charity.