Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling
Currencies / cryptocurrency Jun 19, 2021 - 11:31 AM GMTBy: EWI
The world of cryptos includes something known as non-fungible tokens, which go by the acronym NFTs.
If you're unfamiliar with them, they're a bit bizarre but quite simple. Here's what the April Global Market Perspective, a monthly Elliott Wave International publication which covers 50+ worldwide financial markets, noted:
Investors' manic behavior has expanded to include non-fungible tokens, paying large sums of money for essentially a picture of something.
Getting more detailed, "a non-fungible token is a unique identification code that is affixed to a [digital] asset using blockchain to distinguish it from all other [digital] assets."
The April Global Market Perspective provided more insight with this chart and commentary:
The chart shows the performance of one of the most unseasoned of all collectibles, the non-fungible token (NFT), which first hit the market in December 2017. ... In addition to rocketing prices, NFTs surged into the culture at large with tokens tied to everything from basketball and football players to Passover and a Saturday Night Live skit. Capping the rage is a "digital collage" of bizarre, post-apocalyptic images called Everyday, which sold for $69.3 million through Christie's on March 10.
Well, the NFT craziness has persisted, as the May Global Market Perspective followed up by showing this NFT and saying:
Apparently, NFTs are still a thing. Paris Hilton, who is famous for being famous, garnered a bid of $1,111,211.00 for this Iconic Crypto Queen token on [April 25]. The absurdity of it all is not lost on everyone. "Each market frenzy seems crazier than the last," says MarketWatch.
As for one of the latest developments, on June 10, Barron's showed this image under the headline:
'Covid Alien' CryptoPunk Sells for $11.75 million in Sotheby's Sale
The reason for pointing out investors' interest in non-fungible tokens is to emphasize the level of financial mania that has been reached.
The monthly Global Market Perspective employs Elliott wave analysis to forecast what's next for cryptos, global stock markets, rates, metals, energy, forex and much more.
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This article was syndicated by Elliott Wave International and was originally published under the headline Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
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