The auction of Jack Dorsey’s first tweet as an NFT was set at $48 million, but it ended with a high bid of only $280, a sign of the high volatility of this type of virtual asset.
A huge drop in value of the world’s first tweet
Twitter founder Jack Dorsey’s first tweet was sold for $2.9 million in March 2021 as a non-fungible token (NFT) to an Iranian cryptocurrency entrepreneur, Sina Estavi. This first tweet was symbolic in that it came from the founder of Twitter, and was the first tweet in the history of the social network.
At the time, while some thought the price was already ridiculous, Sina Estavi said that the purchase price was a good deal:
“Years later […] people will realise the true value of this tweet, like the Mona Lisa painting. “
Last Thursday, Sina Estavi announced on Twitter that he wanted to sell the NFT, saying he would donate 50% to charities that fight global poverty. He set the starting price of the auction at $48 million, more than 16 times its original purchase.
I decided to sell this NFT ( the world’s first ever tweet ) and donate 50% of the proceeds ( $25 million or more ) to the charity @GiveDirectly
https://t.co/cnv5rtAEBQ pic.twitter.com/yiaZjJt1p0
– Estavi (@sinaEstavi) April 6, 2022
Unfortunately for him, after a week of bidding, he only tallied seven bids in total on Wednesday ranging from 0.09 ETH ($280 at the cryptocurrency’s current price) to 0.0019 ETH (almost $6). The good deal at the time thus seems to have turned into a nightmare.
According to the NFT OpenSea marketplace where he auctioned his work, he has since received other offers, including one for $6,800 (or ETH 2.2). But that still seems a pittance compared to the $2.9 million initially paid, and the $48 million target.
Estavi told Coindesk that he was not obliged to sell the NFT:
“The deadline I set was past, but if I get a good offer I might take it, I might never sell it. “
A glaring example of the volatility of NFTs
The market for non-fungible tokens has become very democratic in 2021, with sales reaching $17.7 billion last year, compared to just $82 million in 2020, according to a report from market tracker Nonfungible. Many celebrities have publicly claimed to have purchased NFTs, which has created a buzz among the public.
Despite this exponential growth in 2021, the NFTs market is not at all on the same growth trajectory this year, as if there are signs of a slowdown. In early March, daily sales were down 83% since the end of January, according to market tracker Nonfungible.
The decline in value of Sina Estavi’s NFT is a good example of the rollercoaster ride in the NFT market and a reminder of how volatile the value of these works can be. It is therefore important to be aware of the risks involved in acquiring this type of virtual work.
