Social media mogul Jack Dorsey’s first non-fungible token (NFT) tweet is now worth less than $4.
Dorsey sold the tweet after a short bidding war between TRON founder Justin Sun and Bridge Oracle CEO Sina Estavi for $2.9 million in March 2021.
Dorsey’s Tweet NFT Depends on Twitter Servers
Estavi’s bid won the prized social media post in which the former Twitter CEO said he was “just setting up” his “twttr.”
However, the NFT’s value has now plummeted to just $3.77, according to data from NFT marketplace OpenSea. Estavi’s efforts to sell the NFT for $48 million in 2022 proved futile despite the fact that he promised to give half of the proceeds to charity.
Former Securities and Exchange Commission (SEC) official John Reed Stark took to Twitter to criticize tokenize tweets, saying: “The NFT Emperor Has No Clothes. Hence, it is not at all surprising that an NFT of Jack Dorsey’s first tweet is now essentially worthless,
“While NFTs are supposed to be completely decentralized, in most cases there’s no cryptographic relationship between the image that an NFT points to and its token. The image could be easily altered or replaced if people with access to servers changed the file names.”
NFTs like Dorsey’s record the ownership and provenance of digital or physical items on a blockchain. While certain NFT-like applications like Bitcoin Ordinals keep the digital asset itself on the blockchain, Ethereum NFTs often contain a URL pointing to the file on a server.
Learn here how to create your own NFT.
A common danger is the link could rot if the owner of the server moves or deletes the file. In the case of Dorsey’s tweet, the NFT would point to a valid URL only as long as Twitter’s servers operate.
Several celebrities’ NFTs lost significant value during the crypto winter. YouTube personality Logan Paul’s Azuki NFTs fell precipitously, while Justin Bieber’s Bored Ape Yacht Club NFT is now worth around $60,000 after the singer bought it for $1.3 million.
Dorsey’s Bitcoin Evangelism
Under Dorsey’s watch, Lightning payments company Strike rolled out Bitcoin Twitter tips to enable fans to compensate artists.
Later, Dorsey helped found a decentralized social media app Damus through Nostr, a base layer using the Lightning network. Lightning is a Bitcoin Layer 2 that enables small transactions to be finalized faster than on the main Bitcoin layer.
Users of apps built on Nostr can exchange Bitcoin over Lightning channels. Dorsey himself contributed 14 Bitcoins to the project.
The former Twitter CEO also created an invite-only decentralized social media app, Bluesky. He has attended Bitcoin conferences in Africa and pursued adoption and interest through his payments company, Block.
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In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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