One of the things people get excited about in the NFTs space is the potential for not just a secondary market, but one where sales can reward the original creators of that NFT, not just the sellers. Is this potential all it’s cracked up to be? A report by Bloomberg using data from blockchain analytics company Nansen offers a counterpoint.
The latter analysed 8,400 collections, including 19.3m individual NFTs, and found that a third “have essentially expired, with little or no trading activity” while another third are “trading below the amount it cost issuers to mint the tokens”.
Is this a big problem? Perhaps only if you were counting on lucrative secondary sales as your reason for buying (or making) NFTs. If anything, this particular part of the NFTs bubble popping might refocus more minds on other potential uses for this technology, based around building fan communities and rewarding loyalty over time, rather than resale profits.