In 2018, Nate Alex caused a stir when he bought a CryptoKitty NFT for a staggering $600,000. At the time, CryptoKitties were one of the hottest digital collectibles around. However, three years later, the same CryptoKitty is now worth only $3,752, a huge 99% decrease in value. Let’s dive in!
CryptoKitty NFT Catastrophe: Lessons Learned from a Drastic Value Drop
CryptoKitties are digital cats that exist on the Ethereum blockchain. Each CryptoKitty is unique and the value of each NFT is determined by its rarity and desirability. In the collection, there are ‘Fancy Cats,’ ‘Exclusive Cats,’ and ‘Special Edition Cats.’ Holders can use their CryptoKitties to breed and sire new kittens. In 2017 and 2018, CryptoKitties gained immense popularity. Moreover, some NFT enthusiasts bought rare kitties for astronomical prices.
Nate Alex’s CryptoKitty NFT was one of the rarest around. It was a “Founder Cat,” one of the first CryptoKitties ever created. Founder Cats were only available for purchase during the first week of CryptoKitties’ release, making them extremely rare and desirable. Nate Alex bought his Founder Cat, named “Genesis,” for $600,000.
However, since then, the CryptoKitty market has cooled off considerably. The hype around CryptoKitties has died down, and the value of most CryptoKitties has plummeted.
The case of Nate Alex’s CryptoKitty NFT serves as a cautionary tale for those investing in digital collectibles. While some CryptoKitties may still hold value, the market is highly speculative, and prices can fluctuate wildly. As with any investment, it’s important to do your research and consider the risks before making a purchase!
All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, make your own research prior to making any kind of investment.
