As the crypto sphere for tokens falls at the moment, the speculative bubble around NFTs and the metaverse may also burst.
A disaster will ensue
As cryptocurrencies struggle to recover from the crisis and wild theories and speculations have emerged about the cause of their collapse, it seems the crypto sphere is not at the end of its troubles.
In fact, according to a report written by Sheena Shah, an analyst at Morgan Stanley bank, there could be another catastrophe in the crypto world. At this point, it’s the metaverse’s turn and the NFTs to collapse. The reason? There is so much speculation around them and so the swelling of a bubble is estimated to be ready to explode within a few weeks.
Popular and leveraged crypto areas, such as decentralized finance (DeFi) and crypto-backed stablecoins, have seen huge selloffs as it has become increasingly clear that all high prices are sold on speculation, with limited actual demand. to the user.
Excerpt from Sheena Shah’s report for Morgan Stanley
But how can non-fungible tokens and virtual worlds, which are currently enjoying real success, collapse so quickly? For Sheena Shah, the answer is very simple: users buy NFTs and land in the metaverse with the hope that they can resell them at a good price and make a profit. Unfortunately, this happens more rarely and the aggrieved investors decide to just sell their asset. A frustration that is expensive in the industry because the event always happens to most; thousands of interested parties resold their digital stuff and the bubble burst. Unfortunately, for the Morgan Stanley analyst, this trend is already visible and predicts the worst for the future.
The misunderstanding of the crypto sphere led to the bursting of the bubble
For Emily Stewart, journalist at Vox, the appearance of bubbles is directly linked to users ’ignorance. According to him, too many investors put their hands in the wallet in the hope of making a profit but did not first know about the functionality of the blockchain and its risks. Therefore, some of them will spend all their savings to buy NFT without being able to sell it and make a profit. A fashion event where the entire crypto sphere will not hesitate to surf at everyone’s expense.
When it comes to cryptocurrencies, all the questions come down to one: what exactly is it for? Crypto has to be special, that is, unlike other markets – at least if you listen to its investors. But what if this is not the case? […] For a while there was so much publicity for cryptocurrencies that no one could ignore this industry; Larry David’s Super Bowl ad for the FTX trading platform warns viewers to “don’t miss out” on the industry’s next brand-but doesn’t explain what it is. Many people in crypto do not dare to claim that the purpose of the industry and all its members is to actually make money.
Excerpt from Emily Stewart’s article for Vox
Great figures like Changpeng Zhao seem right: if the industry doesn’t change its values, it will be condemned to have to live forever to arrive and then burst a series of bubbles.
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