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NFT of Jack Dorsey’s First Tweet Draws Bids Below $40,000 in Disappointing Resale

Jack Dorsey created the first-ever tweet in 2006. Its Non-fungible Token, which held so much potential, now suffers a massive devaluation. From a $2.9million purchase value, it has plummeted to only a few thousand dollars.

The famous tweet read – “just setting up my twttr” – and was purchased by Sina Estavi in 2021 for 1,630.58 ether. At that time, Estavi outbid other investors to bag the NFT at about $2.9million. Estavi who is the CEO of a Malaysian-based crypto company named Bridge Oracle, expressed profound optimism about the token. After the purchase, Sina promptly updated his social pages to reflect his ownership status of the first tweet ever. 

A year after, the investor is seeking to reap the fruit of his investment. The rewards however don’t seem forthcoming. Proof of Estavi’s belief in the resale value is also evidenced in his optimistic announcement made earlier this month. He said:

 I decided to sell this NFT (The world’s first-ever tweet) and donate 50 percent of the proceeds ($25million or more) to the charity @GiveDirectly”.

In a rather surprising turn of events, $25million was too much expectation. Three weeks after Estavi’s tweet, at writing, the highest bid is at 10.3 ETH( $31,895), with one initial proposal of $6 days ago.

“Jack Dorsey’s First Tweet” NFT sold for $2.9 million last March

 

Estavi is giving the impression that the disappointment is taken in stride. He retweeted a tweet hinting that perhaps Elon Musk might purchase it. This comes after the announcement of Elon Musk’s intention to take over Twitter. The lack of positive response to high-profile NFTs is poking loopholes in the validity of the market. It suggests that there are limitations to its turnover rate based on the public’s sentiment.

Are NFTs Biting More Than they can Chew?

The NFT market seemed to explode from the year 2020. Ever since there has been a record of a surge in its popularity that cuts across many industries.  The Beeple Digital artwork went for a record $69 million last March, setting the pace for other significant sales. However, there is solid evidence that the hype about NFTs might be thoroughly waning in 2022.

On a positive note, music is finding its way into the NFT space at an increasing rate. Recording companies see the digitization of songs as NFTs as a worthwhile investment. NFTs featuring Mike Davis and Bob Dylan will be out officially this year. The proposed collection comes on the back of an agreement between Universal Studios, Sony Music, and Snowcrash- a non-fungible token platform.

Coachella, Youtube, Live Nation, BTS Agency Hybe, the Recording Academy, etcetera are also part of a long line of brands hopping on the trend. Returns like the NFT of Jack Dorsey’s tweet might however send some cautious signals, as NFT activities lull. 

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NFTs are novel and presumably risky. However, when it comes to risk in finance for big corporations with enough capital to spare, experimenting is always an option. Whether it works out or not, there will be a contribution to the repository of financial investment strategies for brands.

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