Short-term greed and shady projects
Vaynerchuk likened the 2021 NFT boom to the internet stock boom and the subsequent dotcom bubble crash in 2000. According to him, investors were viewing the technology as a source of exponential returns. This led to investments without due diligence and thoughtfulness. Bad actors exploited this by setting up scam projects aimed at fleecing investors.
Quality was not the only concern here. The quantity too stood as a perturbing aspect of the NFT market. According to Gary Vaynerchuk, anyone can launch an NFT project. Easy access has effectively made way for poor NFT projects with no demand.Several metrics painted a bearish picture for NFTs. This included declining sales volumes, floor prices at record lows, and a general hesitancy from investors to put money into projects.