- Gary Vaynerchuk provided explanations for his previous declaration that 98-99% of NFT projects would go to zero in the next year.
- He illustrated three main causes— oversupply, momentary greed, and naïve operations.
- The NFT winter would see declined sales volume, low prices and poor investments.
Gary Vaynerchuk, better known as Gary Vee, the Chairman of VaynerX and the CEO of VaynerMedia, released a detailed explanation of why he has previously commented that a major portion of the NFTs would “go to zero”.
On November 22, Gary tweeted that 98-99% of NFT projects from the 2021 NFT year would become “bad investments” in the upcoming years:
Though once he was a major supporter of NFTs, he has turned up now, “after 25 years of being in the game”, with the details of the current predicament of NFT markets with declining popularity and falling prices.
As he prefers “conviction over convincing”, he elucidated the main causes of the long-anticipated “NFT winter” that he expects to happen in 2023- too much availability, momentary greed, and inept operators.
While explaining the first cause, he referred to the condition of NFTs in 2021 when the over-publicity endorsed by celebrities prompted the launch of innumerable NFTs. However, “the demand has not and will not be able to keep up with that extraordinary level of supply”.
Similarly, he illustrated the community’s greed in amassing profits through trading NFTs. Before the NFT crash in 2021, there had been a significant flow of NFTs without considering quality, but only quantity.
In one of his previous tweets, Gary mentioned that “lack of patience and short-term greed will short-change a lot of people who had more potential”. He pointed out the greed among NFT traders who seek technology only for financial benefits.
Finally, the entrepreneur talked about the easy availability and accessibility of NFTs and both advantages and disadvantages. He also added that, with the abundance of NFT, people without adequate knowledge started dealing with NFT projects, compromising the quality of NFTs.
However, according to him, the people working behind the project are as important as the project:
Unlike other “collectibles” and “art”, the founders/creators of NFT projects have an incredible opportunity and responsibility to use the technology known as the blockchain to continue to build and add value to their holders.
Furthermore, he described his estimations on the future condition of NFTs listing the decline in sales volume, record low prices, poor investments, etc.