A ‘more honest’ stock market – TechCrunch

by Jeremy

Hello friends, and welcome back to Week in Review!

Last week, I talked about Clubhouse’s slowing user growth. This week, news broke that they had been in talks with Twitter for a $4 billion acquisition, so it looks like they’re still pretty desirable. This week, I’m talking about a story I published a few days ago highlighting almost everything wild about the alternative asset world.

If you’re reading this on the TechCrunch site, you can get this in your inbox from the newsletter page and follow my tweets @lucasmtny. stock market

The big thing

Suppose you successfully avoided all mentions of NFTs until now. In that case, I congratulate you because the broader NFT market is seeing a significant pullback after a frothy February and March. You’ll still be seeing plenty of late-to-the-game C-list celebrities debuting NFT.

I spent the last couple of weeks chatting with many people in one particular community — one of the oldest active NFT communities on the web called CryptoPunks. Its platform has 10,000 unique 24×24 pixel portraits that trade at truly wild prices. Art in the coming weeks, but a more sober pullback in prices will probably give some NFT platforms serious about longevity a better chance to focus on the future and discover how they truly matter.

I wrote about the history and legacy of CryptoPunks, a vibrant $200 million NFT marketplace built around trading pixelated characters. There are only 10,000 of them, and owning the cheapest will cost you about $30k. https://t.co/X4iTSl6FjC

— Lucas Matney (@lucasmtny) April 8, 2021

This picture sold for $1.05 million.

I talked to a dozen people (including the guy who sold that one ^^) that had spent tens of thousands and millions of dollars on these pixelated portraits; my goal is to tap into the psyche of what the hell is happening here. The takeaway is that these folks don’t see these assets as any more non-sensical than what’shappeningn in more traditional “old world” markets like public stock exchanges.

A telling quote from my reporting:

“This is a very speculative market… but it’s almost more honest than the stock market,” user Max Orgeldinger tells TechCrunch. “Kudos to Elon Musk — and I’m a big Tesla fan — butno fundamentalst support that stock price. It’s the same when you look at GameStop. It’s almost more honest with the NFT community because nobody’s getting tricked into thinking there’s some very complicated math that no one can figure out. This is just people making up prices, and if you want to pay it, that’s the price, and if you don’t want to pay it, that’s not the price.”

Shortly after I published my piece, Christie’s announced that they were auctioning off nine CryptoPunks in an auction likely to fetch at least $10 million at current prices. The market surged in the aftermath, and many millions worth of volume quickly moved through the marketplace, minting more NFT millionaires.

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