Gary Vaynerchuck, a well-known businessman and an advocate of NFT, better known by his stage name Gary Vee, has said that the main causes of the NFT market’s steep decline over the past year were overstock, greed, and substandard projects.
Gary Vee on the problems facing the NFT industry
On December 12, Gary Vee promoted his most recent blog post using Twitter, which examines the present problems facing the NFT industry and where he believes it will be in the coming year.
Gary Vee stressed that there’s been a lot of fear, uncertainty, and doubt (FUD) from both conventional media and social media this year when discussing the situation of the market, with both typically stressing problems like declining trading volumes and falling floor prices.
According to Vaynerchuck: “The truth is, if you’ve been paying attention, you know what’s really happening here, and if you’re like me, you’re not surprised.”
Hope this article can help some of you, the feedback has been humbling …. Why I Said 97-99% of NFTs Would Go to Zero – Gary Vaynerchuk https://t.co/BmhO7OUGdH
— Gary Vaynerchuk (@garyvee) December 11, 2022
He referred back to a forecast he made the previous year, in which he claimed that “98-99% of NFT ventures” that gained relevance during the NFT bubble in 2021 would turn out to be poor investments or would “go to zero.”
Gary Vee points out issues with NFTs
In defending this forecast, Gary Vee emphasized overstock, short-term greed, and subpar operators as the three main factors hindering the business.
While most projects are not focused on providing value to their communities, Gary noted that “there have been fantastic projects headed by true operators who are,” adding that:
“The demand has not and will not be able to keep up with that extraordinary level of supply, and any time that happens, there’s a bubble waiting to burst.”
In terms of short-term greed, Gary Vee said that the sector has been hindered by a plethora of people trying to make quick money by starting businesses or trading NFTs, leading to losses from scams and the implosion of projects with weak foundations.
He stated that “everyone is way too selfish, way too fast, and lacking thoughtfulness.” Adding that, “Everyone is treating this like a micro sprint and a gold rush instead of a marathon, and that’s why most will lose.”
Over 1,300 users were surveyed on Twitter about their NFT purchasing patterns from late May to early June by blockchain tracking software provider DEXterlab. Less than 42% of those surveyed reported making a profit at the time of the poll, despite the fact that 64.3% of them claimed to have purchased NFTs “to earn money.”
Speaking about terrible projects, Vaynerchuck made the claim that since anybody can easily start an NFT projectZ: “there are now a tremendous number of individuals without any genuine expertise in things like business, long-term community development, culture, the day-to-day functioning of a workforce, or driving demand.”
What will happen to NFTs in 2023?
Gary Vee asserted that, looking ahead to 2023, there probably won’t be another market surge like that of 2021, especially given the fact that he doesn’t expect the “macroeconomic picture” to change for the better any time soon.
Furthermore, Gary Vee compared the crypto and NFT industries to the rapid growth of the internet in the late 1990s and early 2000s, when a great number of businesses failed but the most powerful ascended to supremacy.
“Many projects will crash and go to zero, like Pets.com, due to a ridiculous amount of supply, but there will be some, like 1–3% of projects, that will become the Amazons and the eBays.” The key is: “How many of you are willing to do the homework it takes to make smart investments?” Gary asked.
Beginning in 2021, Vaynerchuck entered the NFT market, and in May of that same year, he released his first project, VeeFriends. Since then, he has contributed to numerous initiatives. VeeFriends, with $241.8 million in sales volume, is the 20th-ranked NFT collection overall, according to data from CryptoSlam.
