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Crash of the NFT
Former investment banker Colborn Bell, who owns millions of dollars in NFTs, has warned that the market for the tokens is on the verge of collapsing, according to Fortune.
Bell began collecting NFTs in early 2020 and now has a sizable collection. He also founded the Museum of Crypto Art, a virtual reality art gallery.
Despite having a large stake in the future of NFTs, Bell told Fortune that he is "prepared, I believe, for a devastating market meltdown."
It's a refreshingly candid inside look at what the NFT mania has evolved into - and where it might be headed.
Awful Formula
The ex-banker insists he isn't in it for the money, promising never to sell a single NFT from any of his own collections on display at the museum.
Bell believes that by exhibiting their art at his museum, he is only assisting others in "proving that they were here before the gold rush." To bring the museum to life, he even purchased a historic church in Kingston, New York.
But, he claims, there is one major issue. There are way too many artists compared to purchasers.
"For artists, the barrier to entrance is significantly lower than for collectors," Bell told Fortune. "That formula, in my opinion, does not work."
It's a remarkable admission from someone who is deeply involved and invested in the movement — and a rare moment of self-reflection in the industry.
"There's this assumption that just because something is an NFT, it's instantly valuable," Bell remarked. "This, in my opinion, is when it becomes quite dangerous and resembles a financial bubble."
Selling Out
The goal of crypto art, according to Bell, is to be "countercultural," with the museum serving as a "counternarrative to the unbridled commercialization that is taking place here."
Given Bell's position, it's possibly an ironic statement. According to Fortune, one of his own collections is currently valued at roughly $15 million.
Then there's the fact that a lot of independent artists despise NFTs.
It remains to be seen, of course, if Bell will keep his word and never cash out, even if the NFT bubble is about to explode.
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