Meta Gives NFTs the Boot
Financial crazes have a way of flaming out.
As prominent examples — meme stocks, special-purpose acquisition companies (SPACs) and non-fungible tokens (NFTs) have all seen major setbacks since their glory days during the past few years.
Regarding one of those, here’s a March 13 news item from Reuters:
Meta Platforms Inc is cutting off support for digital collectibles or non-fungible tokens (NFTs) on its platforms less than a year after rolling it out…
The flaming out of financial crazes is part of what Elliott Wave International’s Global Market Perspective calls “The Everything Bust” – a deflation of most (if not all) risk-asset prices across the board.
This chart and commentary from the March issue of the Global Market Perspective focuses on special purpose acquisition companies:
The chart shows that the IPOX SPAC Index peaked … on February 17, 2021. In March 2021, Alex Rodriguez, the former New York Yankee third baseman, joined the “Blank Check Derby” as the CEO of Slam Corp. with the promise of purchasing an unknown company in the entertainment industry. EWFF reminded readers, “When jocks and other celebrities are viewed as savvy investment professionals, an uptrend of some significance is surely ending.” We classified the deal as an “ultimate harbinger of the next bear market.” The SPAC index has declined 51% from its peak. … [W]e called for caution when SPACs topped in 2021 and stated, “In the annals of the coming bear market many stories of SPACtacular failures will be told.” Many of those failures are rolling in now, and still there is little evidence of caution. Most of the tragedies lie ahead.