A huge drop in value from the world’s first tweet
Twitter founder Jack Dorsey’s first tweet was sold for $2.9 million in March 2021 in the form of a non-fungible token (NFT) to an Iranian entrepreneur operating in the cryptocurrency community, Sina Estavi. This first tweet was symbolic in the sense that it comes from the founder of Twitter, and it is the first tweet in the history of the social network.
At the time, while some thought the price was already ridiculous, Sina Estavi said his purchase price was a bargain:
” Years later […] people will realize the true value of this tweet, like the Mona Lisa painting. »
Last Thursday, Sina Estavi announced on Twitter that he wanted to sell the NFT, saying she would donate 50% to charities fighting global poverty. He set the starting price for the auction at $48 million.more than 16 times its initial purchase.
— Estavi (@sinaEstavi) April 6, 2022
Unfortunately for him, after a week of bidding, it only counted seven offers in total ranging from 0.09 ETH on Wednesday ($280 at current cryptocurrency price) at 0.0019 ETH (almost $6). The bargain of the time therefore seems to have turned into a nightmare.
He would have received, according to the NFT OpenSea marketplace on which he put his work up for auction, other offers since, including one at $6,800 (i.e. 2.2 ETH). But that still seems derisory compared to the 2.9 million initially disbursed, and the targeted 48 million dollars.
Estavi told Coindesk that he was not obligated to sell the NFT :
” The deadline I set had passed, but if I get a good offer I might take it, I might never sell it. »
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A glaring example of the volatility of NFTs
The market for non-fungible tokens has become very democratized in 2021, with sales who have reached $17.7 billion last yearup from just $82 million in 2020, according to a report by market tracker Nonfungible. Many celebrities have publicly claimed to have purchased NFTs, which has sparked excitement among the public.
Despite this exponential growth in 2021, the NFTs market is not at all in the same perspective of growth this yearas if there were signs of shortness of breath. In early March, daily sales were down 83% since late January, again according to market tracker Nonfungible.
The drop in value of Sina Estavi’s NFT is a good illustration of this roller coaster in the NFT market and serves as a reminder of how the value of these works can be volatile. It is therefore necessary to be aware of the risks incurred when one wishes to acquire this type of virtual work.
👉 On the same subject – NFT: how to identify and avoid the most common scams?
Source: Coindesk – Illustration: TED Talk via Flickr (CC BY-NC-ND 2.0)
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