Jack Dorsey's First Tweet NFT Plummeted to Under $4 from $2.9 Million Valuation

The non-fungible token (NFT) of Twitter co-founder Jack Dorsey's first-ever tweet, originally sold for $2.9 million in March 2021, is now reportedly valued at less than $4. The digital asset, representing the tweet "just setting up my twttr" posted on March 21, 2006, was purchased by crypto entrepreneur Sina Estavi on the "Valuables" platform. Estavi had initially planned to resell the NFT for $48 million, intending to donate half the proceeds to charity.

NFTs are unique digital assets stored on a blockchain, typically Ethereum, that certify ownership of a digital item, which can range from art and music to tweets and video clips. Unlike cryptocurrencies, NFTs are non-fungible, meaning each token is unique and cannot be interchanged. This underlying blockchain technology provides a verifiable record of ownership, making each NFT distinct.

The significant depreciation of Dorsey's tweet NFT highlights the volatile and speculative nature of the broader NFT market. While the market experienced a surge in popularity and high-profile sales in 2021, including digital artwork by Beeple selling for $69 million and NBA Top Shot moments fetching hundreds of thousands, many assets have since seen drastic value corrections. Critics have consistently pointed to the speculative bubble, potential for scams, and environmental concerns, although the Ethereum blockchain has transitioned to a more energy-efficient "proof-of-stake" model.

Despite the market's fluctuations, proponents suggest that NFTs hold long-term potential beyond speculative art. They envision future applications in verifying ownership of real-world assets, enhancing in-game economies, and serving as loyalty rewards. The technology's ability to provide immutable proof of ownership for digital items is seen as a foundational shift, even as the market matures and finds more stable use cases.