NFT mania saw Non-Fungible Tokens explode from crypto curiosity to $41 billion market (2021), with digital art, profile pictures, and virtual land selling for millions before crashing 97% in 2022. Bored Ape Yacht Club, CryptoPunks, and celebrity endorsements defined the bubble.
The 2021 Explosion
Beeple’s “Everydays” sold for $69M at Christie’s (March 2021), legitimizing NFTs as art. CryptoPunks (10K pixelated avatars from 2017) traded for millions. Bored Ape Yacht Club (BAYC) launched April 2021, selling 10K apes for 0.08 ETH ($200); within months, floor price hit 100 ETH ($300K+).
OpenSea (NFT marketplace) processed $14B volume in 2021. Every celebrity launched NFTs: Snoop Dogg, Paris Hilton, Jimmy Fallon, Eminem. Twitter added hexagonal pfp verification. FOMO reached fever pitch.
The Use Cases (and Hype)
Proponents claimed NFTs revolutionized: digital art (provable scarcity), gaming (portable items), music (royalties), real estate (virtual land), memberships (token-gated communities). BAYC offered yacht club perks, ApeCoin governance, and metaverse access.
Critics noted: most NFTs were JPEGs anyone could copy, “ownership” meant blockchain pointer not copyright, wash trading inflated volumes, and environmental impact (pre-Merge Ethereum consumed massive energy).
The Celebrity Endorsements
Justin Bieber bought Bored Ape #3001 for $1.3M (now worth $60K). Paris Hilton and Jimmy Fallon discussed NFTs on Tonight Show. Athletes, musicians, and influencers shilled projects—many were paid promotions disclosed poorly. Kim Kardashian fined $1.26M by SEC for promoting EthereumMax.
The 2022 Collapse
As crypto winter hit, NFT trading volume collapsed 97% from $17B (January 2022) to $466M (September 2022). Bored Ape floor price fell from 150 ETH to 50 ETH (and ETH fell 70%). Most NFT projects went to zero. “Right-click save” mockery intensified.
Scams & Rug Pulls
Pixelmon raised $70M for Pokémon-like game, revealed terrible 3D models. Evolved Apes creator disappeared with $2.7M. Frosties rug-pulled $1.1M. The space became synonymous with pump-and-dump schemes.
By 2023, NFTs retreated to niche crypto community, reputation destroyed.
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