Nassim Taleb Criticizes NFT Investments, Calling it a “Mental Deficit”
WHAT YOU SHOULD KNOW
- Nassim Taleb, author of “Black Swan,” criticized NFT investments, stating that they lack intrinsic value and involve high levels of speculation.
- The NFT market has experienced a major slump, with the average price of NFT sales dropping by 92% between May and July 2022, indicating a return to pre-boom levels.
- In a previous statement, Taleb had already warned about the NFT market, noting the plummeting valuation of an NFT auction for Twitter co-founder Jack Dorsey’s first tweet, which was listed for $2.5 million and later for $47.7 million.
Nassim Nicholas Taleb, the renowned author of “Black Swan,” recently took to Twitter to express his criticism of investing in Non-Fungible Tokens (NFTs). He argued that NFTs are not a wise investment choice due to their lack of intrinsic value and the high level of speculation surrounding them. In his tweet, Taleb referred to investing in NFTs as a sign of a “mental deficit.”
Taleb’s critique comes at a time when the NFT market has experienced a significant slump. According to a Benzinga article, the average price of NFT sales has plummeted by 92% in just two months, from May to July 2022. This decline in value and the decrease in active NFT buyers and sellers indicate a return to the pre-boom period when the NFT market was less volatile.
Previously, in April, Taleb had already voiced his concerns about the NFT market, stating that the “NFT thingy is starting to bust.” He had also pointed out the declining valuation of Twitter co-founder and CEO Jack Dorsey’s first tweet, which was sold as an NFT. While the tweet initially fetched $2.5 million in bids, a later listing of the same NFT in 2022 reached a staggering $47.7 million, highlighting the extreme volatility and speculative nature of the NFT market.
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