In a latest tweet, John Reed Stark, a veteran of the U.S. Securities and Exchange Commission (SEC) has come ahead to assert that the Non-Fungible Token (NFT) market is “flat-out rigged.” He means that market manipulation of NFTs is not solely widespread but additionally tacitly endorsed.
The SEC Veteran’s Perspective on the NFT Market
Stark cites a research indicating {that a} staggering 95% of analyzed NFT collections have a market cap of zero Ether. These statistics are undoubtedly regarding and lift questions concerning the sustainability of many NFT tasks. It highlights the potential prevalence of failed or fraudulent NFT endeavors.
It’s Official: NFTs Will Go Down in History As Pet Rocks On Steroids (And Crypto Is On The Fast Track To Do The Same)
Stick a fork within the NFT market, it’s useless. Remember when NFTs offered for hundreds of thousands of {dollars}? 95% of the digital collectibles at the moment are most likely nugatory, much less…
— John Reed Stark (@JohnReedStark) September 21, 2023
Stark additionally highlights that the commonest worth for an NFT is now $5-$10. This suggests a major decline within the worth of NFTs because the peak of the market, a far cry from the multi-million-dollar gross sales that when made headlines.
A significant criticism Stark levy at NFT is its underlying nature. He refers back to the digital collections as “fractionalized links to the metadata of JPEG files” and deems them an “offensive, shocking, and utterly ridiculous con game.” In his view, NFTs lack inherent worth and are little greater than digital property tied to the idea of possession and shortage.
Stark went on to criticize enterprise capitalists and Wall Street profiteers who, he claims, grew to become rich by selling NFTs with guarantees of decentralization, monetary inclusion, and instantaneous wealth. However, he asserts that many retail consumers ended up struggling monetary losses whereas these financiers profited.
Stark Extends Criticism to Crypto World
Stark’s criticism extends past NFTs to embody your complete crypto trade. He argues that crypto fails as an “investment” as a result of absence of regulatory oversight, transparency, client protections, insurance coverage, licensure, and internet capital necessities.
He additionally emphasizes the prevalence of market manipulation, insider buying and selling, and fraud, suggesting that buyers are at an obstacle from the outset. While some could view his criticism as harsh, it is a reminder that the crypto house, like some other monetary market, wants to handle its shortcomings to earn the belief and confidence of buyers and contributors.
It is price noting that Stark is not the one one criticizing Non-Fungible Tokens. The Chinese government has been a vocal opponent of digital digital property within the nation, having already banned cryptocurrencies and mining operations.
The introduced content material could embody the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty in your private monetary loss.
