Huge Surprise: Two Thirds All NFT Drops Are Complete Failures

Is there more evidence that the NFT market is vulnerable? A recent analysis found that a full two thirds of all NFT collections fail.

Many have suspected for a long time that a majority of NFT collections end up costing less than they are worth.

More than 19 million individual NFTs, accounting for about 8,400 collections, are all but expired, according to an analysis by Nansen.

The cost of creating one of these digital assets is one of the reasons why a third of them are being sold for less than the token amount. Minting fees can range up to hundreds of dollars per token depending on the platform and market.

The NFT market is still in its first inning reminiscent to the 2018 ICO bust. A lot more people are going to make life changing wealth in this space but before that happens a total weed out of the market is going to happen. Only the best projects will survive.

— cryptochungus.eth (@cryptochungus_) March 27, 2022

ICO PTSD

The data is reminiscent of the Initial coin Offering fiasco when scores of digital currencies were rendered worthless after financial regulators declared that many could be considered illegal securities.

Money is flowing too fast and ignorant into the space, according to WhaleShark, a pseudonymous NFT mega-collector.

Many collections without significant marketing campaigns are vulnerable to failure.

In the current market, it is a pump-and-dump cycle that is leading to a decrease in the market. Similar to a pyramid scheme.

Bored Ape Yacht Club's offerings go for hundreds of thousands of dollars, and the 8-bit CryptoPunk NFTs, whose brand BAYC recently acquired, are also still selling for large sums of money.

Not everyone can be a winner in the crypt.

The NFT Collection Failures begin to mount in the back of the mind.

Broke museums are selling paintings by Da Vinci and Raphael.

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