Popular entrepreneur and NFT proponent Gary Vaynerchuck — also known as Gary Vee — has argued that oversupply, greed and subpar projects are the main reasons the NFT market fell so hard over the past year.
On Dec.12, Vaynerchuck highlighted his latest blog post via Twitter which explores the NFT sector’s current issues and where he thinks it’s headed next year.
Hope this article can help some of you, the feedback has been humbling …. Why I Said 97-99% of NFTs Would Go to Zero – Gary Vaynerchuk https://t.co/BmhO7OUGdH
— Gary Vaynerchuk (@garyvee) December 11, 2022
Commenting on the state of the market, Vaynerchuck emphasized that there has been a significant amount of fear, uncertainty and doubt (FUD) from the media and users of social media this year, who have generally highlighted issues such as dwindling trading volumes and floor prices.
“The truth is, if you’ve been paying attention, you know what’s really happening here – and if you’re like me, you’re not surprised,” argued Vaynerchuck.
He pointed back to a prediction he made a year prior in which he argued that “98-99% of NFT projects” that gained traction during the NFT boom in 2021 will end up being bad investments or “go to zero.”
Problems with NFTs
Explaining this prediction, Vaynerchuck highlighted three major issues holding back the market — oversupply, short-term greed and poor operators.
In terms of oversupply, Vaynerchuck argued that the large number of “celebrities, influencers, sports leagues, big brands and individual artists” that jumped on the bandwagon last year was bound to cause supply and demand issues.
“Some have been amazing projects led by true operators who are focused on delivering value to their communities – most are not,” he wrote, adding that:
“The demand has not and will not be able to keep up with that extraordinary level of supply, and any time that happens, there’s a bubble waiting to burst.”
In regards to short-term greed, Vaynerchuck argued that the industry has been hampered by too many people rushing to make a quick buck from launching projects or trading NFTs, resulting in losses to scams and projects with poor fundamentals imploding.
“Everyone’s way too selfish, way too fast, and lacking thoughtfulness. This is a marathon, but everyone’s treating it like a micro sprint and a gold rush, and that’s why most will lose,” he wrote.
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