Cryptocurrencies are crashing globally, and there is some fear among enthusiasts that NFTs could be next
This file photo taken in London on December 30, 2021 shows a PsychoKitty NFT created by psychedelic artist Ugonzo. The market for certified digital objects ("NFT"), which has been booming since it burst onto the scene last year, has just come to a sudden halt and now needs to clean up its act if it is to attract the general public and survive, according to specialists. (Credits: Justin TALLIS / AFP)
Paris, France: A slew of celebrity endorsements helped inflate a multi-billion dollar bubble around digital tokens over the past year, but cryptocurrencies are crashing and some fear NFTs could be next.
NFTs are tokens linked to digital images, "collectable" items, avatars in games or property and objects in the burgeoning virtual world of the metaverse.
The likes of Paris Hilton, Gwyneth Paltrow and Serena Williams have boasted about owning NFTs and many under-30s have been enticed to gamble for the chance of making a quick profit.
But the whole sector is suffering a rout at the moment with all the major cryptocurrencies slumping in value, and the signs for NFTs are mixed at best.
The number of NFTs traded in the first quarter of this year slumped by almost 50 percent compared to the previous quarter, according to analysis firm Non-Fungible.