In 2018, Nate Alex induced a stir when he purchased a CryptoKitty NFT for a staggering $600,000. On the time, CryptoKitties had been one of many hottest digital collectibles round. Nonetheless, three years later, the identical CryptoKitty is now value solely $3,752, an enormous 99% lower in worth. Let’s dive in!

CryptoKitty NFT Disaster: Classes Realized from a Drastic Worth Drop

CryptoKitties are digital cats that exist on the Ethereum blockchain. Every CryptoKitty is exclusive and the worth of every NFT is decided by its rarity and desirability. Within the assortment, there are ‘Fancy Cats,’ ‘Unique Cats,’ and ‘Particular Version Cats.’ Holders can use their CryptoKitties to breed and sire new kittens. In 2017 and 2018, CryptoKitties gained immense recognition. Furthermore, some NFT fanatics purchased uncommon kitties for astronomical costs.

Nate Alex’s CryptoKitty NFT was one of many rarest round. It was a “Founder Cat,” one of many first CryptoKitties ever created. Founder Cats had been solely accessible for buy in the course of the first week of CryptoKitties’ launch, making them extraordinarily uncommon and fascinating. Nate Alex purchased his Founder Cat, named “Genesis,” for $600,000.

Nonetheless, since then, the CryptoKitty market has cooled off significantly. The hype round CryptoKitties has died down, and the worth of most CryptoKitties has plummeted.

The case of Nate Alex’s CryptoKitty NFT serves as a cautionary story for these investing in digital collectibles. Whereas some CryptoKitties should still maintain worth, the market is very speculative, and costs can fluctuate wildly. As with all funding, it’s essential to do your analysis and take into account the dangers earlier than making a purchase order!