Black Swan Author Slams NFTs as Jack Dorsey’s Tweet NFT Receives $1.14 Bid After Being Sold for $2.9 Million in 2021

Nassim Nicholas Taleb, the author of "Black Swan," took to Twitter to criticize the non-fungible token (NFT) industry, highlighting the significant drop in value that some tokens have experienced since their peak. He expressed strong skepticism about NFTs as investment choices, citing their lack of intrinsic value and the speculative behavior they encourage.

Taleb's criticism was triggered by a tweet mentioning Jack Dorsey's first tweet, which was sold as an NFT for $2.9 million in March 2021 but received a much lower bid of $1.14 in a subsequent sale. This example is reflective of the broader downturn in the NFT market, with average sale prices plummeting over 90% from their peak.

In April, Taleb had already expressed concerns about the NFT market, stating that the "NFT thingy" was starting to burst. Since then, the market has continued to contract.

While NFTs have experienced a decline, the cryptocurrency market has shown signs of recovery. Ethereum, one of the primary networks on which NFTs are issued, has seen its price rise, testing the $2,000 mark. A popular analyst predicts a potential upside of nearly 60% for Ethereum.

Despite the contraction in the NFT market, institutional investors seem to be increasingly turning to cryptocurrencies. Investment products focused on cryptocurrencies like Bitcoin, Ethereum, and XRP have seen a significant influx of funds. However, Ethereum-specific products have seen net outflows year-to-date, with investors moving $63 million out of these products so far this year. Products focused on multiple digital assets have also experienced outflows, though they saw a small influx of $200,000 last week.

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