Non-Fungible Tokens (NFTs): Another Financial “Fumble”
NFTs have taken “a round trip to nowhere”
by Bob Stokes
Updated: August 16, 2022
Tampa Bay Buccaneers' quarterback Tom Brady is a non-fungible token (NFT) enthusiast.
However, glory on the football field has not translated to this field of finance (Business Insider, August 8):
Tom Brady bought a Bored Ape NFT for $430,000 in April. He's lost at least $194,000 on it since then.
He paid 133 ether for it... which is $235,436 right now. Its best offer is $136,034.
Brady formed his own NFT company in 2021 and is one of many celebrities who became enamored with cryptos.
Yet, celebrity endorsements of cryptos have not exactly had a stellar record. Examples include a 95% plummet in the average price of NFTs sponsored by boxer Mike Tyson, a slide of more than 75% in World of Women NFTs backed by movie star Reese Witherspoon and a big tumble in the price of Bitcoin since movie star Matt Damon appeared in video advertisements in October 2021. And the list goes on.
Our Global Market Perspective has been keeping subscribers apprised of cryptos. The July issue showed this chart and said:
Non-fungible tokens (NFTs) are [an] asset class that demonstrates investors remarkable tolerance for losses in the wake of The Great Peak. The chart shows the NFT Index, which originated on March 20, 2021 to track the price of these tokens. The index is down 90% from its high.
Remarkably, the major slide in the price of NFTs and other cryptos has not dampened investors' enthusiasm.
This is from our August Global Market Perspective:
Barron's reported on August 4 that "mom and pop investors are pouring money into cryptocurrencies." Retail investors are piling into bitcoin "at the fastest rate in history."
Often, such zeal can serve as a contrarian indicator. On the other hand, manias can persist before they finally end.
This is an ideal time to consult the Elliott wave model. Keep in mind that no method of analysis offers a guarantee, however, the Wave Principle does reflect the repetitive patterns of investor psychology.
Get our detailed Elliott wave analysis of cryptocurrencies as you review our Global Market Perspective. Just follow the link below.
Prepare for Bitcoin’s Next Big Move
How?
Review Bitcoin's Elliott wave pattern via our cryptocurrency charts and commentary, which you'll find in our Global Market Perspective.
Our forecasts also cover Ethereum and other cryptocurrencies.
No analytical method of financial markets can offer a guarantee about the future.
That said, read this quote from Frost & Prechter's Elliott Wave Principle: Key to Market Behavior:
The primary value of the Wave Principle is that it provides context for market analysis. This context provides both a basis for disciplined thinking and a perspective on the market's general position and outlook.
Yes, the Wave Principle puts Bitcoin's roller-coaster ride into context.
Get our "perspective on [Bitcoin's] general position and outlook" now by reviewing our Global Market Perspective.
P.S. Limited-Time Special Offer: Subscribe to the Global Market Perspective for 2 months for $154 and get the eCourse "How to Catch and Ride Extended Waves" FREE ($79 value). In this course, you'll learn how to spot and trade extended wave opportunities from one of the best Elliott wave trading instructors, Wayne Gorman. (1 hour 20 minutes)
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