Hollywood is abuzz about NFTs—nonfungible tokens—the digital assets that are being sold at eye-popping prices by celebrities, athletes, and artists as limited-edition collectibles on blockchain marketplaces.
Prices are being driven by a relatively small group of buyers who made fortunes by getting in early on Bitcoin and other cryptocurrencies. But as the supply of NFTs increases exponentially over the coming months, it is almost universally expected that prices for new NFTs will sputter. The NFT rocket ship has flown to great heights, but like everything that goes up, it must eventually come down. The question is: When and where will it land?