FOX Business’ Stuart Varney, during his latest “My Take” on “Varney & Co.” Friday, stressed the NFT market makes him “worried” and argued he doesn’t understand why people would pay “vast amounts of money to acquire a token.”
STUART VARNEY: I admit it, I don’t follow the NFT market closely. Non-fungible tokens, NFTs, are a mystery to me. I just don’t understand why people would pay vast amounts of money to acquire a token. But people do, and we frequently report on this exotic market.
So here’s the latest on the “Bored Ape” NFT sale. Bear with me, please. I’m talking about digital art. Developed, for whatever reason, around pictures of apes. OK.
Last weekend, Ape NFTs went on sale, online, of course.
Demand was so strong that the system hosting the sale couldn’t handle it. Some sales went through, some did not. Some people paid a bigger transaction fee than what they paid for the NFT. By the way, buyers paid an astonishing $180 million in transaction fees! And the people who organized the sale, Yuga Labs, walked away with $320 million.
Full disclosure: I don’t follow this market. I’m using information gathered by Farhad Manjoo. It’s in his New York Times op-ed today titled “What Is Happening to the People Falling for Crypto and NFTs”.
He’s not a fan, and neither am I.
In fact, the whole NFT market gets me worried. How much longer will people pay billions for a token?
I don’t know, but a massive loss of wealth in NFTs, if that happened, the ripple effects throughout the financial system would not be pretty.