Crypto-hype: After great success: Second NFT falls past Golden State Warriors flops | news

Second NFT collection was to break new records after the success of the first drop

Bid on the rarest NFT in the collection when not even buy the now price

Errors can herald the end of the NFT hype

The Golden State Warriors’ first NFT collection was a success

As early as April 2021, the Golden State Warriors decided to launch an NFT collection. As reported by the website SFGATE, the team released a number of digital items that celebrated famous periods in the history of the franchise. Among other things, tickets, championship rings and banners from different eras were sold to fans in the form of NFTs.
The fall came at a good time. The hype surrounding cryptocurrencies continued to pick up speed and the cryptocurrency Ethereum was heading for a record high. The most significant part of the collection, according to SFGATE, was a “1-of-1 World Championship Ring NFT that combined all six franchise titles into a single design.” According to the website, the coveted item was sold for 285.1111 ETH, which was equivalent to $ 967,727.78 at the time. The NFTs in the rest of the collection are also said to have evolved excellently. According to SFGATE, even the subsequent price loss of Ethereum and the occurrence of fraudulent events in crypto markets as well as regulatory restrictions on the part of China would not have stopped the hype. This is one of the reasons why the Golden State Warriors were so excited about the release of another collection.

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The second NFT fall of the Golden State Warriors turns out to be a flop

Numerous successful examples have led many market participants to believe that an NFT collection is a sure hit. “In general, cryptocurrencies and NFTs are a get-rich-quick scheme, and I’m not even saying that in a derogatory way. People have seen astronomical gains in some cases,” said Jacob Silverman, who writes a book on cryptocurrencies and fraud. , told SFGATE. “The appeal for salespeople and for companies or for a sports team is that this acts as an easy source of revenue.” After the first hit, it was probably a sure bet for the Golden State Warriors to boost their earnings again with another NFT drop.

The second collection followed in April 2022, a year after the first collection. According to SFGATE, she focused her sales items on the upcoming season. Fans should get “additional utilities and benefits for each round the team progresses” through the purchases. It includes, among other things, signed jerseys and coveted seats. The 2,999 embossed NFTs each had a starting value of $ 499.99 and could be purchased without Ethereum. An exception was the “Gold Bar All-Access Pass” NFT, which could only be purchased using Ethereum bids and, in addition to the unique NFT, also includes two tickets to each Warriors playoff match and a real gold bar. But fans were apparently not very enthusiastic about the bid: The highest bid in the auction, which is now closed, was ten Ethereum, which was valued at $ 30,287.70 at the time the bid was placed. This amount is far from the last 1-of-1 World Championship Ring NFT sales record. Not even the buy-it-now price of 25 Ethereum that the Warriors had set was reached. According to estimates from SFGATE, with a buy at this bid and Ethereum price, the buyer would even have to make up for almost half the price with the value of the gold bar delivered. The rest of the NFTs are also said to be doing poorly. Already a month after the first sale, many can only be resold at a lower value.

Is the NFT hype over?

The Golden State Warriors have hailed their NFT collection as a “crown jewel” containing “priceless aids and unique benefits,” according to SFGATE. Due to the high demand, bids were expected that would “break records with certainty”. These records were now completely missing. To the surprise of many, the collection totally flopped, raising the question of whether the NFT hype could possibly be over. The Golden State Warriors describe their fall as “the second largest fall in revenue in the history of North American team sports.”

“A lot of the irrational enthusiasm has left the industry,” Silverman also told SFGATE. “I think more and more companies will see that NFT projects initially create excitement or raise money, but next time they try to go back to their customers or fans to sell them something again, with a very less. The interest continues. I think that’s what’s happening to the Warriors. ” While the Warriors have tried to make their NFT drop more attractive with big incentives like fan experiences and extra perks, the reality, like any other NFT, is most of the benefit lies in speculation. “Basically, the whole room is a self-assembled one Ponzi scheme with a real value of $ 0, “Silverman continued to SFGATE. As a result, he does not believe the NFT market will recover.

Nicolas Flohr / Editor finanzen.net

Image sources: Sergei Elagin / Shutterstock.com

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