Morgan Stanley Says NFTs Could Be Next After UST Collapse
Categories: Crypto News US
Morgan Stanley has warned that NFTs could be next to collapse after seeing what went down with the collapse of UST.The US multinational finance giant, which has admitted crypto isn’t just a fad and also recently proclaimed that the metaverse is the next big investment theme, issued its warning to holders of digital assets as the great crypto crash of 2022 continues.In a Fortune report issued last week, it was noted that steep declines in Bitcoin, Ethereum and other tokens were not associated with the decline in equity markets. Instead, prices were subject to investor “speculation, with limited real user demand”, according to crypto analyst Sheena Shah. However, such speculation is not limited to cryptocurrencies, with both NFTs and digital real estate in the metaverse affected. Shah noted that most holders bought NFTs with the expectation that they would appreciate, but at the moment that is simply not happening.Overall, this year has not been kind to the NFT market. Total NFT transaction activity declined from US$3.9 billion to US$964 million from mid-February to mid-March. That’s not to say all NFTs are suffering equally – recent high-profile NFT collections such as Moonbirds, and the metaverse land sale for Otherdeeds, have done major business. According to Modesta Masiot, finance director at NFT raking platform DappRadar, most NFT trading was centred on “blue-chip” NFT collections such as CryptoPunks. She added: “NFTs look to be entering perhaps one of many maturity stages. We expected this and believe it’s a normal development in such technology.”