Non fungible tokens are a quite new product of the crypto industry, but they've managed to gain a lot of traction, pixelated cartoons turning into NFTs and an entire TV series featuring Vitalik Buterin, Mila Kunis and Ashton Kutcher is also sold as a NFT.
The most famous ones are probably the Crypto Punks...
Those have actually been given away for free by their creators back in 2017, but after being sold and resold by their owners, the Punks have taken in 232,000 ETH ($573 million). That's a lot of money, you know... It's more than three times the total market capitalization of HIVE.
Hive is a practical blockchain that runs pretty smooth and its main token should be valued much more than $0.4, but that's a story for another day. CryptoPunk #5217, which is that little guy in the pic above has been sold for 2,250 ETH ($5.4 million) lately. There's a whale swimming the waters eating such NFTs like there's no tomorrow.
Some say that it could be Justin Sun, and knowing how dumb he really is, that could be the case. Why would you pay $5.4 million for a CryptoPunk NFT and not buy Bitcoin instead?...
Because you already own tons of Bitcoin?!... I don't know, I guess some buyers are pouring money into these things out of speculation while some do probably see value in such NFTs...
I personally wouldn't pay that much for a NFT, even if I had the money. It's a product that's new on the market and probably at some point will increase in value at an insane pace, pretty much like BTC did, but I still believe those are overvalued, especially from the fundamentals based point of view.
I am perfectly aware that crypto is expanding and the more capital will flow into this industry the more diverse "the products" will be, but I still believe such NFTs are over valued. Those are a sign though of how insane things can go in the crypto space and what valences this world can take.
I guess those could be a few reasons why someone would pay the equivalent of $5.4 million for such "a work of art". It's "still pixelated" and I'd definitely invest $5 million in something else, but unfortunately I don't have that much cash. What do you think though about this NFT sold for 2,250 ETH?
Thanks for attention,
Adrian