“Most people are cheering, but at the same time, shake their heads and go, when will the bust come?” Said Jane Leung, chief investment officer at SVB Private Bank.
One of those who bought into the frenzy was Matthew Schorr, 35, an attorney in Cherry Hill, NJ. For years, he noticed hot investments, but lost interest in the stock market. and gave up Bitcoin after his friends ditched cryptocurrencies. is “counterfeit money”. Now, he regrets that the value of one Bitcoin has risen above $ 57,000, which means the eight Bitcoins he paid for a Domino pizza in 2011 would be worth more than $ 450,000 today.
Mr. Schorr doesn’t want to miss it again. So starting in January, he spent $ 5,000 buying 351 videos from NBA Top Shot, a website that sells featured clips on basketball, after he saw the buzz on social media. fret about them being sold for tens of thousands of dollars. The value of those clips has now risen to $ 67,000, according to Momentranks.com, which tracks sales.
These clips are a type of investment known as NFT, or unusable token, that has been successful in music, arts, and sports. Digital tokens use computer networks to prove that a digital item such as a video, image or song is authentic, delivering value to the item – at least in the eyes of the buyer. . Some NFT wallets are like digital transaction cards. (The creators of the basic works usually keep the copyrights.)
Skeptics consider the NFT to be one of the most suspicious of content, as NFT images can be constantly copied and shared. However, there are still enough people convinced of the value of token validation that they have combined with another market-driven phenomenon, FOMO, or “fear of missing out”.
“I’m trying to catch my heartbeat and not let myself fall behind again,” said Schorr, who spends up to five hours a day doing market research and talking to collectors on Discord. “That kind of profit in six weeks is absolutely unprecedented in any financial medium.”
Last month, NBA Top Shot surpassed $ 232 million in total revenue since it started last year – including $ 47.5 million in revenue in just one day.