--- title: "Huge Surprise: Two Thirds All NFT Drops Are Complete Failures" description: "A new analysis has found that the majority of NFT drops are complete failures -- either generatig no interest, or not enough to cover their minting fees." date: "2022-03-29" modified: "2022-03-29" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/the-byte/many-nft-drops-failures" categories: - "Blockchain" - "Future Society" - "NFTs" tags: - "crypto" - "initial coin offering" - "nfts" - "the digest" --- # Huge Surprise: Two Thirds All NFT Drops Are Complete Failures ![A new analysis has found that the majority of NFT drops are complete failures -- either generatig no interest, or not enough to cover their minting fees.]() *Statue of holy mother mary amongst some headstones and tombstones in a graveyard/cemetery in galway city, connacht, ireland during a fog. \Image: Getty Images\* ## Blockchain Blues Need more evidence that the non-fungible token (NFT) market could be surprisingly fragile? Look no further than a recent analysis which found that a full two thirds of all NFT collections end up failing. A [new study from the Nansen blockchain analytics firm]() reveals what many have long suspected — that a majority of NFT collections either make no money or end up netting less than they costed to create. Nansen found in its analysis of about 8,400 collections, accounting for more than 19 million individual NFTs, that a third are all but expired, having barely been traded or not traded at all. Another third, the analysis notes, are being sold for less than the amount it takes to "mint" a token, which means the cost associated with creating one of these much-hyped digital assets. Minting fees vary wildly depending on specific platforms and market ephemera, but can [easily range up]() into the hundreds of dollars per token. https://twitter.com/cryptochungus_/status/1508177063248769024 ## ICO PTSD As [*Bloomberg* notes](), this data is reminiscent of the [2018 Initial Coin Offering (ICO) fiasco]() when scores of digital currencies were rendered worthless after financial regulators declared that many could be considered illegal securities. "The semblance is uncanny," WhaleShark, a pseudonymous NFT mega-collector, told *Bloomberg*. "Money is flowing too fast and too ignorant into the space." WhaleShark added that many collections without significant marketing campaigns are particularly vulnerable to failure. "In the current market, it’s a pump-and-dump cycle among PFPs which is why this is leading to a decrease in the market," WhaleShark told *Bloomberg*. "Not enough new money coming in to support PFP projects. Similar to a pyramid scheme." Of course, some tokens are still selling for ungodly amounts of crypto, such as the Bored Ape Yacht Club (BAYC) offerings that go for hundreds of thousands of dollars, or the 8-bit [CryptoPunk NFTs whose brand BAYC recently acquired](). But in the Wild West of crypt, not everybody can be a winner. **READ MORE:** [NFT Collection Failures Begin to Mount in Flashback to ICO Bust]() \[*Bloomberg*\] **More NFT idiocy:** *[Broke Museums Are Selling NFTs of Famous Paintings By Raphael And Da Vinci]()* ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()