The cryptocurrency and NFT markets suffered a devastating depreciation in recent weeks. A report by Yahoo! Finance shows that over $1 trillion worth of crypto assets have gone with the deprecation while NFTs values have dropped by over 80% of their peak market value.
The world-renowned investor, Gary Vaynerchuk, popularly known as Gary Vee, has repeatedly predicted the crash severally on one of his programs, “NFT Winter.” While commenting on the recent crash, he told the Yahoo Finance team that he saw the downturn coming and explained that it resulted from the short-term greed of investors in both sectors.
Optimism about the NFT Crash
However, Gary Vee believes the recent misfortune recorded in both sectors is nothing but a temporary setback that can have little impact on the sectors and investors. In his opinion, the recent collapse in both sectors, “is a healthy check to the excess speculation.”
While explaining the rationale behind his optimism about the sectors, he compared the crypto and NFT speculations to the dot-com bubble in the late ‘90s. He claimed that just as the internet was massively hyped and overblown; NFTs valuations this year have been overblown as well. Nevertheless, he believes the fundamentals aren’t fake but real.
According to the VeeFriends, and NFT collection, founder, he is ahead of other investors in the crypto community as one of the pioneer members of the NFT community. His background knowledge of the sectors has helped him make better decisions that protect him against sudden falls.
Celebrities Warned to be Cautious of Endorsements
The crash has had a hugely negative impact on celebrities and endorsements. Recently, celebrities such as Matt Damon, Reese Witherspoon, Gwyneth Paltrow and LeBron James pulled their weight behind cryptocurrency and NFTs. During a Los Angeles Super Bowl event, tagged ‘Crypto Bowl’ celebrities campaigned massively for cryptocurrencies, NFTs and Web 3 on the global map.
Vee has advised celebrities to be selective when choosing brands to endorse and support. According to him, their support for cryptocurrencies and NFTs has a direct impact on these businesses, although they are not primarily responsible for the falling global economy.
Collectibles are Immune to the Crash
Although several factors such as rising inflation, geopolitical events, civil unrest, plummeting stock market, and a host of other factors are currently depreciating NFTs and crypto, some collectibles are immune to these factors and are performing incredibly well in the market.
Some of these collectibles have earned their owners millions of dollars in sales. For instance, Andy Warhol sold his Marilyn collectible for $195 million, while a 1955 Mercedes recently sold for a whopping $143 million.
Because of the seeming timelessness of these collectibles and their high values, Vaynerchuk believes that NFT prices are not absolute but relative. Citing his experience with critics who at one time believed the internet was nothing concrete but a fad, he encouraged people to sustain their interest in NFTs and other collectibles as they have the potential to pick up against all odds.