The NFT of Jack Dorsey’s first Tweet failed to gain much interest in a recent auction, earning a top bid of around $280. Dorsey auctioned his first-ever Tweet as an NFT in 2021, and it received a fair bit of interest among digital memorabilia collectors and people wanting in on the NFT action. The eventual buyer of the NFT was Iranian-born crypto entrepreneur Sina Estavi, who paid $2.9 million for it. The Tweet, which was posted in March 2006, says “just setting up my twttr.”
NFTs have become big business over the past couple of years, with people paying millions of dollars for what are essentially digital photos. Several mainstream companies are also jumping on the NFT bandwagon, with YouTube said to be exploring how creators can use the technology on the platform to elicit more engagement from fans. Mark Zuckerberg recently confirmed that Instagram was looking to add an NFT marketplace in the future. Even the established Bonhams auction house recently offered a set of five paintings by Nelson Mandela as an NFT collection.
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NFTs have become a massive business with collectors paying millions of dollars for what skeptics derisively call glorified JPEGs. Entrepreneur Sina Estavi might have been looking to make a profit when he bought Dorsey’s Tweet for $2.9 million, but when it was put on sale recently, the auction didn’t go according to plan and failed to attract much attention. According to CoinDesk, the NFT only got seven offers, ranging from just 0.0019 ETH (about $6 in current valuation) to 0.09 ETH (about $280).
The Uncertainty With NFT Valuation
While putting the NFT on sale earlier this month, Estavi announced that he would donate 50 percent of the proceeds from the auction to charity. Estavi was expecting as much as $48 million for the NFT, so it’s safe to assume that he wasn’t exactly thrilled by the turn of events. Following the disappointing auction results, Estavi told CoinDesk that even though the deadline for bids was over, he might still sell the NFT if he receives a good offer, adding he might choose to keep it as a piece of treasured digital memorabilia.
The auction has once again brought to the fore worries surrounding the valuation of NFTs. The industry is new and most people are still unsure of how NFTs should be valued. The latest case is once again a reminder that NFT investments may not be for the faint of heart, and there are many safer and more time-tested ways for people to invest their hard-earned money. It’s safe to assume that Estavi won’t accept the $280 offer, and will be hoping that the NFT fetches a higher price in the future.