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Bluetek IT Solutions has been serving the Pennsylvania area since 2005, providing IT Support such as technical helpdesk support, computer support and consulting to small and medium-sized businesses.

The Good, The Bad and The Ugly of NFTs

The rise in popularity of crypto art, also known as NFTs, comes at a price.

The good

  • Blue chip NFT projects such as CryptoPunks, Bored Ape Yacht Club, and CyberKongz have great teams and communities behind them. These NFTs have some sort of utility and even reward holders, which results in passive income. 
  • CryptoPunks became so popular that individual images have been auctioned off at Christie's and Sotheby's. 
  • At first, everyone could get in. Let's take Axie Infinity as an example. It was extremely popular in Southeast Asia because the cost of entry was close to nothing and you could make some money on the side with it, which was crucial for some during the pandemic.
  • The future of NFTs goes beyond crypto art. More on that in the video.  

The bad

  • The best-in-class NFTs are too expensive for the regular joe to buy, creating opportunities for copycats to emerge.
  • 99% of NFTs will go to zero because of this.
  • Hype takes away common sense.
  • The NFT market is not very liquid. There are more sellers than buyers, which results in silent crashes of more than 70% overnight.
  • As seen with Bitcoin (BTC -2.13%) and Ethereum (ETH -1.60%), crypto is extremely volatile, and it's no different with NFTs. 

The ugly

  • When there's a way to make a quick buck, you are bound to have scams and pump-and-dumps. Evolved Apes is a prime example. After it got on Opensea, the head of the project vanished, taking 798 Ether (roughly $2.7 million) with him.
  • Since this is such a new phenomenon, a lot of people will get hurt because of its fast-paced nature. Nobody really knows what's going on, which projects are going to be successful and which are not. Regardless, money is pouring in left, right, and center.
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