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Jack Dorsey’s $2.9M NFT dropped 99% in value

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Re: Jack Dorsey’s $2.9M NFT dropped 99% in value

#141

Post by everfree »

adventured wrote: post #101
colpabar wrote: post #65

Earlier quoted context omitted.

This is a genuine question - should anyone take cryptocurrency seriously? To me, the only purpose of it is to make money. It's the stock market, but with less rules, and it's 24/7. People will say that crypto is important because it's decentralized and non-fiat or whatever, with the implication being that it's not controlled by a government. But we have seen time and time again that that isn't true, and if a governme…

> should anyone take cryptocurrency seriously? To me, the only purpose of it is to make money. It's the stock market, but with less rules, and it's 24/7. It's not the stock market at all. Not even close. The stock market is a system that enables the buying and selling of shares in productive business - businesses that provide goods and services, that generate revenue and (ideally) profit. As a shareholder you own a f…

> Stocks are supported by the productive capacity of the business in question, ultimately; crypto doesn't work that way (at least not at present, maybe one will in the future).

Ethereum's revenue is the transaction fees it collects for people to use the network. Its expenses are the rewards it pays out to miners and stakers. Its profit is the difference between the collected fees and rewarded fees.

This difference between collected fees and rewarded fees is "burned", or ceases to exist. The process shares some similarities with stock buybacks.

Re: Jack Dorsey’s $2.9M NFT dropped 99% in value

#142

Post by SahAssar »

cj wrote: post #69
golergka wrote: post #28

Earlier quoted context omitted.

NFTs of jpegs are scams. NFTs that are linked to real-world assets (through intermediaries that you have to trust, yes — unlike everybody else on the blockchain) like stock, real estate or anything else are not.

Can the people downvoting this explain why this comment is not valuable?

Because real world assets already have frameworks governing their ownership, and those frameworks generally do not take NFTs into account. If the NFT actually grants you ownership of something tangible (like stock, IP, real estate, etc.) then to make that legally enforceable you need to also sign a traditional contract which makes the NFT pretty pointless.

If I bought your house and in addition to all the legal paperwork you also gave me a handwritten note saying "house is yours now, promise!" do you think I'll care about the handwritten note? If you only gave me the note and not all the normally required paperwork do you think I'd pay you?

Re: Jack Dorsey’s $2.9M NFT dropped 99% in value

#144

Post by boopboopbadoop »

simpsond wrote: post #118
adoxyz wrote: post #10

NFT's are a scam.

Just like baseball cards. That said, there are some interesting use cases where the NFT is paired with off-chain cash flow. See royal.io, where IP rights for music are represented by NFTs and the owner of the NFT receives royalties. I think having a liquid market for that kind of investment is more tractable than a jpeg without real IP rights.

In regards to the music royalties example, what’s the benefit of using NFTs over whatever systems already exist?

Re: Jack Dorsey’s $2.9M NFT dropped 99% in value

#145

Post by eric_cc »

elil17 wrote: post #67
ralusek wrote: post #40

Earlier quoted context omitted.

They're a scam in the way that anything for which its value is mostly a function of its scarcity; the scarcity is still always just a modifier on the demand for it. I would be more inclined to call it a scam if the technology was a failure or the purported scarcity of the asset being sold was being misrepresented. Neither of those are true. Instead, what is being traded are extremely scarce assets for which the deman…

Nothing inherently scammy about posting a JPEG and auctioning of some cryptographic link to it. The part that feels scammy is people trying to convince others (often people who are financially illiterate) that NFTs will gain value.

NFT bag holders may actually believe what they’re saying in which case they aren’t scamming. I think to scam you must be operating under nefarious intentions.

Re: Jack Dorsey’s $2.9M NFT dropped 99% in value

#146

Post by TigeriusKirk »

elil17 wrote: post #60
akomtu wrote: post #29

Earlier quoted context omitted.

Sure. But bundle them into CDOs, give them the AAA rating, start selling options on them and suddenly that's a legit business. NFTs are missing this thick layer of complexity that obfuscates the nature of the core financial "product".

CDOs are groups of bonds. Bonds are debts, so they produce real value in the form of interest. If the debtors stop paying, the CDO can recover value in bankruptcy court. CDOs may misrepresent the risk of the underlying assets, but those assets are still there. An NFT is more akin to a baseball card - it’s value might go up, but that would just be because someone wants to buy it. It’s not producing any income on its o…

Not surprisingly given the nature of crypto markets in general, NFTs have been financialized to various degrees. You can, for example, put a popular NFT into a pool where individual NFTs are traded back and forth and you receive a slice of the trading fees. See https://nftx.io/

Re: Jack Dorsey’s $2.9M NFT dropped 99% in value

#147

Post by BitwiseFool »

colpabar wrote: post #65
tablespoon wrote: post #24

From another article on the same topic https://www.theguardian.com/technology/2022/apr/14/twitter-n... : > Man who paid $2.9m for NFT of Jack Dorsey’s first tweet set to lose almost $2.9m > ‘This is the Mona Lisa of the digital world’, says crypto entrepreneur Sina Estavi who bought the NFT in March 2021 This is a good example of why so many people don't take cryptocurrency seriously. It full of hype men who spout tr…

This is a genuine question - should anyone take cryptocurrency seriously? To me, the only purpose of it is to make money. It's the stock market, but with less rules, and it's 24/7. People will say that crypto is important because it's decentralized and non-fiat or whatever, with the implication being that it's not controlled by a government. But we have seen time and time again that that isn't true, and if a governme…

>"To me, the only purpose of it is to make money."

Understandable, but a wide variety of things exist for the sole purpose of making money. That fact doesn't invalidate cryptocurrency. Without launching into the tried and true "what is money" pontification that crypto advocates usually bring up, it does have use cases for many people and even if those use cases are only valid when they interact with other crypto true-believers, it still has utility for those folks nonetheless.

Re: Jack Dorsey’s $2.9M NFT dropped 99% in value

#148

Post by TigeriusKirk »

WFHRenaissance wrote: post #113
gonehome wrote: post #30

Earlier quoted context omitted.

There’s an active market, but it’s mostly winner takes all and ones that establish a brand/community (helped by the tokens gating access to merchandise or events). Also good when token includes IP. BAYC/MAYC is the biggest, milady seems to be getting traction (not sure why). These specific ones are also easy to liquidate for now because of opensea bots willing to sell ~10% below “floor” so they can flip later. I made…

Chiming in RE: Milady. I’m not a “crypto” guy, and I’ve never owned any NFT aside from Milady. FYI: I own a single Milady. I think Milady is seeing its current success for a few reasons, but I think one core reason why it’s doing so well is that Milady does not exist in a vacuum as some random abstract piece of animal art without being the nexus of several subcultures. The Milady community in many ways existed prior…

Miladys feel like a necessary anarchic balance to BAYC.

Re: Jack Dorsey’s $2.9M NFT dropped 99% in value

#149

Post by eric_cc »

SahAssar wrote: post #142
cj wrote: post #69

Earlier quoted context omitted.

Can the people downvoting this explain why this comment is not valuable?

Because real world assets already have frameworks governing their ownership, and those frameworks generally do not take NFTs into account. If the NFT actually grants you ownership of something tangible (like stock, IP, real estate, etc.) then to make that legally enforceable you need to also sign a traditional contract which makes the NFT pretty pointless. If I bought your house and in addition to all the legal paper…

But in theory, a decentralized framework consisting of smart contracts and NFT’s could work. In such a framework, the NFT would be providing real utility (unlike scammy JPEG NFT’s)

Re: Jack Dorsey’s $2.9M NFT dropped 99% in value

#150

Post by poiuiopkj »

tablespoon wrote: post #125
colpabar wrote: post #65

Earlier quoted context omitted.

This is a genuine question - should anyone take cryptocurrency seriously? To me, the only purpose of it is to make money. It's the stock market, but with less rules, and it's 24/7. People will say that crypto is important because it's decentralized and non-fiat or whatever, with the implication being that it's not controlled by a government. But we have seen time and time again that that isn't true, and if a governme…

> This is a genuine question - should anyone take cryptocurrency seriously? To me, the only purpose of it is to make money. It's the stock market, but with less rules, and it's 24/7. I would say no. It's a technology that serves no practical purpose, since the problems it addresses are ones purely created by certain peculiar ideologies. If you're not indulging in one of those ideologies, there's no point. And, like y…

No practical purpose EXCEPT for the ability to easily take assets across borders to leave authoritarian regimes, bringing a form of storing assets to the 2 billion or so unbanked individuals of the world, and comparatively cheap remittances for people sending money back to their families in another country. These are just a few of the incredibly practical use cases that quite literally change people's lives.
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