Feb 26 2021: What Is An NFT—And Should You Buy One?

Back in Feb 26 2021: What Is An NFT—And Should You Buy One?

The market for non-fungible tokens (NFTs) has boomed, with sales of these blockchain-based assets growing 705% to $338 million in 2020. In the first two months of 2021 alone, there have been close to 150,000 sales worth $310 million, almost quintuple the amount sold in the whole of last year.

NFTs are unique tokens on a blockchain that can represent rare digital assets such as art or trading cards. They provide authentic proof of ownership for digital files that can be easily copied, making them valuable in the digital realm.

Fast forward to Sep 01 2023: NFT Hype Fades in Crypto Market as Sales Volume Plunges

Daniel Maegaard, a well-known NFT collector, has been selling off his collection as a crucial part of the market has plummeted. Maegaard, who had amassed millions of dollars' worth of NFTs under the pseudonym Seedphrase, made a notable sale of one token for $4.45 million in 2022. However, with the market downturn, he has chosen to downsize his collection.

Why is a prominent NFT collector downsizing his collection while acknowledging that a crucial part of the market has plummeted?