Welcome to Money Talks with your Investment Bro Stevie Bee. I just have one question to ask my viewers today… Are NFTs finally seeing the door? You know, that new fad that hopped on the scene in the last year called non-fungible tokens. From the jump I was extremely skeptical of its lasting power. In my opinion it was almost as ludicrous as paying any amount of money for an invisibly sculpture or for a banana taped to a canvas… but when you have money all bets are off I guess. Despite my skepticism there has been good money that has changed hands and I would be remiss to not secure a piece of that exchange. So I invested in YVR. I did a swing trade on YVR, made a couple hundred dollars and bailed out. That is the extent of my NFT experience.

But now signals are pointing to what many predicted. According to CointeleGraph, data shows that a majority of the lower-priced NFTs and lesser-known projects in the market do not accrue value and this means that the sector is rather illiquid. Using data from OpenSea, a recent report from Bloomberg found that 73.1% of NFT assets had only one transaction in the past 90 days.

While this may only be just a snapshot of the overall NFT market, the data itself raises eyebrows given that investors looking to buy NFTs on average pay well over $100 to mint a new NFT and cover the fees needed to transfer the asset.

In comments to Bloomberg, Gauthier Zuppinger, the COO of Nonfungible, said that “maybe 90% of collections minted today are totally useless and meaningless.”

Regarding 'successful' NFT investing, Zuppinger:

“Ninety-nine percent is about being in the right circle, having the right information at the right time. In the NFT space, you live with this constant frustration that you have missed a chance to make $1 billion.”

The number of sales being made on marketplaces has cooled off from its August highs as well. The number of daily sales across all NFT marketplaces has declined from a high of 138,109 on Aug. 30 to 42,372 on Sept. 21.

A similar chart pattern is seen across multiple NFT marketplace metrics including the dollar value of sales completed, active market wallets, primary market sales, secondary market sales, unique buyers and unique sellers.

In short, the NFT market is dying out. People are catching on and realizing it for the farce that it is. Yet another pump and dump in something that ultimately is worthless and in a lot of cases turns out to be fungible after all.

Fungible is defined as “being of such nature or kind as to be freely exchangeable or replaceable, in whole or in part, for another of like nature or kind.” Many of these NFTs are exchangeable and/or replaceable in whole or in part.

Thou hast been duped if thou hast partaken in the acquisition of most NFTs. To avoid this, I invested in the platform on which the exchanges occur. As the hype rose, so did the share price hence my swing trade. I hopped out just prior to the cool down and I must say it was a nice little quick run. Like SNDL for example, I jumped in when it was pennies on the dollar, rode it over that dollar mark and secured my profit and sent it packing. Since then, the stock has struggled to gain traction above 72 cents.

In summary, for the activity that is still occurring in the market, “the most actively traded 3% of collections accounted for 97% of all dollar volume,” according to Bloomberg, suggesting that the NFT market is behaving a lot like the wider altcoin market where a small percentage of the tokens receive a majority of the trading volume.

But this is just my take on NFTs. If you have a different experience with them share it with me. Im far from the brightest in the bunch and common sense is not all that common anymore so… help me see what I’m missing. It can’t really be that much being missed here. What do you think?