I’ve had the opportunity to discuss NFT bartering with cryptocurrency professionals, start-ups, interested, passionate, and NFT token holders on a daily basis over the last few weeks, whether through Meetups in France or, more recently, at the Delta Summit in Malta.
It was tremendously inspiring and exhilarating to witness the enthusiasm for these new digital assets, to explore the possibilities, and to assess the nearly limitless potential they provide.
Because NFTs are still relatively new assets, their application, problems, and potential are not yet well understood. NFTs inherit many of the characteristics and ideas associated with their elder siblings, cryptocurrencies.
Exchanges play an important role in promoting token circulation in the crypto sphere. As a result, it is understandable that some users may implicitly anticipate identical tools for these new digital assets.
From a distance, NFTs appear to be nothing more than new tokens on the blockchain; therefore, why not trade them like any other token?
Few People Make Money Trading NFTs
The majority of traders who buy newly issued NFTs and later sell them lose money; just 29% of these deals make money. The majority of individuals who do make money received a discount off the list price on their purchase. Over half of those who make money gain more than a 200 percent return on their investment, whereas 60% of those who lose money on similar transactions lose more than half.
Sixty-five percent of traders buy NFTs on the secondary market and subsequently sell them for profit. However, just 5% of these traders generated 80% of the gains. Traders tend to be the most sophisticated, trade with the most capital, buy and sell the most expensive NFTs, trade the most often, and hold a larger portfolio of NFTs.
Finally, just as you wouldn’t value a Lamborghini in yogurt, I don’t think it makes sense to value/trade one NFT for another NFT.
We must realize that barter has always existed in both the digital and physical worlds and that it will not go away. However, it is and will continue to be unorthodox.
We are eager to discuss this matter with you. Do you believe the NFT exchange has a real-world application? Is it necessary? Will it be well-liked?