Popular entrepreneur and NFT advocate Gary Vaynerchuck, also known as Gary Vee, argued that the main reasons why the NFT market fell so hard last year were oversupply, greed, and below-average projects. Vaynerchuck highlighted in a recent blog post on Twitter that explores the current problems of the NFT industry and where he thinks it will go next year.
Commenting on the market situation, Vaynerchuck highlighted that there has been a significant amount of fear, uncertainty and doubt (FUD) in media and social media users this year, often highlighting issues such as declining trading volumes and floor prices. “The truth is, if you’ve noticed, you know what’s really going on here!” Vaynerchuck said. he stated.
The NFT proponent went back to a prediction he made a year ago when he claimed that “98-99% of NFT projects” that gained momentum during the NFT boom in 2021 will eventually be bad investments or go to zero. highlighted the problem (oversupply, short-term greed and weak operators)
In terms of oversupply, Vaynerchuck argued that the large number of “celebrities, influencers, sports leagues, big brands and individual artists” who jumped on the bandwagon last year would cause supply and demand problems. “Some were great projects led by real operators focused on providing value to their communities, many are not,” Vaynerchuck wrote.
“Demand hasn’t kept up with this extraordinary level of supply and can’t keep up, and there’s a bubble waiting to burst whenever it does…”
Regarding short-term greed, Vaynerchuck argued that the industry is hampered by too many people being in a rush to launch projects or make quick money from NFT trading, leading to fraud and the collapse of projects with weak foundations.
“Everyone is so selfish, so quick and inconsiderate. It’s a marathon, but everybody treats it like a micro-sprint and a gold rush, and so many will lose.”
In June, blockchain tracking software company DEXterlab surveyed more than 1,300 people on Twitter about their NFT buying habits from late May to early June. While 64.3% of respondents said they buy NFT “to make money”, they found that less than 42% made a profit during the survey. Meanwhile, on the subject of bad projects, he said, “there are now a lot of people who don’t have real knowledge of business, long-term community building, culture, daily life, etc.”, since anyone can start an NFT project.