Benzinga - In a recent tweet, Nassim Nicholas Taleb, author of “Black Swan,” criticized the investment in Non-Fungible Tokens (NFTs), calling it a sign of a “mental deficit” The tweet was posted on Wednesday.
What Happened: Taleb, in his tweet, argued that NFTs are a poor investment choice due to their lack of intrinsic value and the high level of speculation involved.
Taleb shared a tweet from @WSBChairman who pointed out that in March 2021 the maiden tweet from Twitter co-founder and Block Inc (NASDAQ:SQ) CEO Jack Dorsey was sold for $2.9 million. but the most recent bid was $1.14.
One sign of mental deficit is "investing" in NFT. The problem is that it was obvious 2 years ago.h/t@mpawlo https://t.co/aB0ylIVDko
— Nassim Nicholas Taleb (@nntaleb) July 19, 2023
See Also: If You Invested $1,000 In Donald Trump NFTs, Here’s How Much You Would Have Today
Why It Matters: Taleb’s critique comes at a time when the NFT market has seen a significant slump. According to a Benzinga article, the average price of an NFT sale fell by 92% in just two months, from May to July 2022. This drop in value and the decrease in active NFT buyers and sellers indicate a return to the pre-boom period.
It is noteworthy that Taleb previously said in April that the “NFT thingy is starting to bust.” At the time he had also noted the plunging valuation of Dorsey’s tweet.
He said, “All you need is higher interest rates for things that make no sense to start making no sense.”
The NFT thingy is starting to burst. All you need is higher interest rates for things that make no sense to start making no sense."Jack Dorsey Tweet NFT Once Sold for $2.9 Mil, Now Might Fetch Under $14K".
— Nassim Nicholas Taleb (@nntaleb) April 16, 2022
Dorsey’s first tweet was put up for sale as an NFT and secured a bid of $2.5 million. However, the NFT of the same tweet was later listed for sale again in 2022 for a whopping $47.7 million, showcasing the volatility and speculative nature of the NFT market.
Taleb has been a vocal critic of cryptocurrencies, including Bitcoin (CRYPTO: BTC), noting harshly that it “isn’t even good” for money laundering.
Photo Courtesy: Shutterstock.com
Read Next: Trump NFTs Reach Record Low, Sinking Over 80% From All-Time Highs
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