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Here’s a Warning Sign for the Non-Fungible Token Marketplace

“It is a unique era”

by Bob Stokes
Updated: December 02, 2021

A non-fungible token (NFT) is a blockchain-based tool that enables people to monetize digital content and, as you probably know, it's become a major craze.

Here are some notable examples from earlier this year:

  • Musician 3LAU sells the world's first-ever crypto-albums, making $11.6 million in under 24 hours (Business Insider, March 2)
  • Beeple JPG File Sells For $69 Million, Setting Crypto Art Record (npr, March 11)

There are many more high-dollar NFT examples from 2021 and here's a more recent one from a Nov. 18 Harvard Business Review article:

[T]he NBA's Top Shot, which is owned by crypto platform Dapper Labs and enables fans to buy and sell tokenized video clips of basketball game highlights, has generated over $715 million in transaction volume.

So, yeah, this is big business.

Elliott Wave International views these sky-high valuations of digital content as part of an unprecedented financial frenzy. This is from the November Elliott Wave Theorist:

No stock market has ever been so absurdly overhyped and overowned. The same is true for junk bonds, real estate, cryptocurrencies and digital art. It is a unique era.

And, now, the world of the digital art marketplace is beginning to show some cracks.

Here's a Nov. 16 Fortune headline:

An NFT issued by the musician Grimes plunges in value by 84% as celebrity-minted tokens struggle in the market

The article goes on to provide more information about weakness in the celebrity NFT market.

Could this weakness be a sign of trouble for NFTs overall?

Well, keep in mind that the November Elliott Wave Theorist described the present as a "unique era."

The big-picture Elliott wave structure of social mood reveals that the financial world is either near or atop a crest -- the size of crest which goes with the word "unique."

That is saying a lot -- given the entire history of financial markets.

The bottom line is that there has never been a more important time to learn the big-picture message of the Wave Principle.

The Elliott Wave Theorist is part of our Global Forecast Service -- which you can learn more about by following the link below.

Typically Quiet Holiday Trading Gets Pushed Aside

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“Lizard People” and Other Conspiracies: What’s Social Mood Got to Do with It?

In a word, everything. From political conspiracies to Covid-related ones to the theories so bizarre that they seem too silly to be relevant, we live in the golden age of conspiracy theories. And while it’s easy to blame social media for their spread, we think the roots go deeper. Watch our new Mood Riff episode where the host Greg Eident explains some fascinating socionomic findings on the subject.

Investing: What You Can Learn from Mom and Pop

Sentiment indicators provide valuable information, yet they are best used in conjunction with Elliott wave analysis. Here's one time-tested indicator that has recently displayed a "big surge."

Market Trek: "No crowd buys stocks of other countries intelligently"

When you track historical patterns of foreign investments in U.S. equities, an important picture emerges. Watch as our Market Trek host Brian Whitmer walks you through a chart of the collective foreign buying interest going back to the 1990s and through today. (Brian's global destination is South Korea.)