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“Most people are clapping, but at the same time shaking their heads and leaving, when does the bust come?” said Jane Leung, chief investment officer of SVB Private Bank.
Matthew Schorr, 35, a lawyer in Cherry Hill, NJ is one of those who bought the frenzy. as “fake money”. He now regrets that, because the value of a single Bitcoin soared above $ 57,000, the eight Bitcoins he paid for a Domino’s pizza in 2011 are now worth over $ 450,000.
Mr. Schorr didn’t want to fail again. So, as of January, he spent $ 5,000 to buy 351 videos from NBA Top Shot, a basketball clip-trading site, after seeing discussions on social media about them, selling for tens of thousands of dollars. The value of those clips has now climbed to $ 67,000, according to Momentranks.com, which tracks sales.
Music videos are a type of investment known as NFT, or non-fungible tokens, which have taken off in music, art, and sports. Digital tokens use networks of computers to prove that a digital item such as a video, picture or song is authentic, giving it value – at least in the eyes of the person buying it. Some compare NFTs to digital collectible cards. (The creators of the underlying works usually retain the copyright.)
Skeptics consider NFTs among the most questionable assets, as an NFT image can be copied and shared endlessly. Yet enough people are convinced of the value of token authentication that they have aligned themselves with another market propellant, FOMO, or “fear of missing out.”
“I try to keep my finger on the pulse and not get caught up again,” said Schorr, who spends up to five hours a day researching the market and chatting with other collectors on Discord. “This kind of six-week return is totally unheard of in any financial vehicle.”
Last month, NBA Top Shot crossed $ 232 million in total sales since launching last year – including $ 47.5 million in single-day sales.
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