Non-fungible tokens, or NFTs, have already been all the rage in 2021 among influencers looking to monetize their fan bases.
Serial entrepreneur and early Facebook and Coinbase investor Gary Vaynerchuk announced the launch of his VeeFriends NFT project Wednesday. It features more than 10,000 unique digital character tokens that also give owners access to various real-life events. For example; Vaynerchuk’s future annual VeeCon business conferences and VIP access.
The NFTs are set to be auctioned off to winning bidders with transactions settled in cryptocurrency ether (ETH-USD).
But Vaynerchuk warned in an interview Wednesday that a rising fear of missing out and speculation when it comes to NFTs could cause turmoil in the market.
“There is an absolute NFT winter coming,” Gary said, harkening back to the crypto winter of 2018 that saw a 80% drop in the price of bitcoin.
There are too many projects that are completely built with no intent other than ‘I am a celebrity, I am intellectual property I want money as fast as possible. Unfortunately, when there are new things that happen the bad guys come out just as much as the good guys come out. Before you buy an NFT, spend 20, 30 hours … get educated, understand what you’re doing. This fear of missing out … is driving people into silliness.Serial entrepreneur and Investor Gary Vaynerchuk
For better or for worse, the NFT trend has shown some signs of slowing. The average sale price for crypto art has dropped over 60% from a February high, according to the market research site NonFungible.com.
On April 24th, the average price for a non-fungible token or NFT was about $1,549 while average February prices were over $4,000.