The Adults Are Now in the Room for NFT Collectibles
On October 2, 2023, author Michael Lewis, known for “Going Infinite: The Rise and Fall of a New Tycoon,” referred to NFTs and cryptocurrency as “A SOLUTION WAITING FOR A PROBLEM” during his appearance on CBS Morning News.
RARITYX, THE HOLDER OF THE FIRST PATENT IN THE NFT INDUSTRY FOR TRADING RARITY ASSETS, IDENTIFIED THE PROBLEM EARLY ON.
RarityX’s assets are grounded in vetted high-value tangible assets that support cryptocurrency (NFTs) and boast a proven track record of value. Opensea, FTX, and many other cryptocurrencies opted for the easy path of digital currency, and they are now grappling with the consequences. This serves as a prime example of favoring technology over pragmatism and failing to grasp economic principles.
Data analysis reveals the implosion of the NFT market, including its primary competitors. OpenSea, one of the world’s largest digital market platforms for crypto assets and non-fungible tokens, witnessed sales plummet by over 96% since May 2022.
According to on-chain data aggregator DappRadar, non-fungible token trading revenues on the NFT marketplace have plummeted this year. In May 2023, NFT trading sales decreased by 96%, from $105 million in May 2022 to a mere $3.6 million. The number of NFT transactions dwindled by 88% from late May 2022 to May 2023, dropping from 107,000 to 12,000. Platform fees also nosedived by 99%, plummeting from $193 million to $1.4 million as of March 2023.
This market downturn can be attributed to various factors, including the bear market, an insider trading scandal involving Nathaniel Chastain, the head of product, and the emergence of a formidable new NFT marketplace.
Illiquidity has introduced unpredictability and risk among investors, significantly impacting the NFT market. In contrast to traditional assets, NFTs typically lack real-world assets or intrinsic value to support their pricing. The absence of tangible assets complicates the determination of fair market values, restricting the liquidity of non-fiat currencies. When NFT holders struggle to swiftly convert their holdings into cash or other assets, illiquidity becomes a concern, exacerbating market instability and contributing to the downturn.
RarityX’s assets are FINRA COMPLIANT and registered with the Securities and Exchange Commission (SEC).
RarityX, a trademark under Liquid Rarity Exchange, LLC, has emerged as a response to the speculative nature of the NFT market and the absence of substantial real-world backing. It aims to revolutionize investments by altering how individuals access and invest in fractionalized high-end collectibles from the real world. Furthermore, RarityX’s SEC-compliant assets, supported by high-end collectibles from the real world, can significantly alleviate the broader NFT market’s illiquidity issues. These tangible collectibles provide a firm value foundation, enhancing investor confidence and facilitating the trade and exchange of fractionalized assets. This paradigm offers a potential solution bridging the digital and physical asset investment realms.
RarityX eliminates the need for intermediaries by leveraging blockchain technology and smart contracts, ushering in an era of cost-effectiveness and accessibility for collectors and investors alike. By offering a secure and transparent platform, RarityX democratizes access to valuable assets while fostering trust within the investment ecosystem. This paves the way for an innovative and inclusive approach to high-end collectible investments.
Sources:
https://insidebitcoins.com/news/openseas-nft-revenue-drops-96-since-may-2022-heres-what-fueling-this-downtrend