If you actively follow tech news, you’ve probably heard of NFTs (non-fungible tokens) once or twice in recent months.

The idea grew hugely popular over a short period of time, taking the market by storm. And while many were excited for the future possibilities surrounding this market, things didn’t exactly work out as some were hoping.

In the end, the NFT market proved to be a passing trend that eventually ended up collapsing. But it still left us with some food for thought.

Since it's likely that we'll see a similar concept soon, let's discuss the lessons learned.

How Did NFTs Take Off in the First Place?

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NFTs originated in the realm of blockchain, the same tech that powers popular cryptocurrencies like Bitcoin.

Some people confuse blockchain and cryptocurrencies, using the terms interchangeably. Blockchain simply refers to technology that allows users to store a list of records, all connected to each other through cryptographic methods. The final result is that the entire list is verifiable from start to finish, and can’t be modified without the consent of all participants (or more often, simply can’t be modified at all).

Somebody saw that idea and realized that it fits well within the art world, specifically around the idea of buying and selling exclusive, limited-edition art pieces. And so, the idea of NFTs was born.

The basic concept is that a person can pay for a unique copy of an art piece, and that ownership is then verifiable through blockchain records. As a result, only the buyer has the actual “rights” to the artwork, and this can be publicly verified.

People used the technology to trade all kinds of artworks, from pictures and music to more abstract concepts, like game assets and even physical products. Nobody seemed to have any issue with the fact that unlike real, physical artworks, NFTs did not guarantee exclusive ownership—meaning that two people could independently own two separate, unique copies of the same piece.

The Rise to Mainstream Media Attention

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The idea was novel and quickly attracted a lot of attention, including from some high-profile celebrities. Nike were rumored to be eyeing the market as well, patenting tech that allowed them to link NFTs to real products, but this never really took off. In the span of just a couple of weeks, pretty much all mainstream media outlets were talking about NFTs and painting them as the future of both blockchain and the art world.

Transactions started rising in value rapidly; a LeBron James collectible card sold for significant money. Elon Musk eventually joined the NFT crowds too, announcing a plan to sell one of his tweets as an NFT. Some were already making big plans around the idea, and saw it as a great way to cash in on current tech trends over the next few years.

Related: Elon Musk's Most Controversial Tweets

Speaking of Twitter, CEO Jack Dorsey—who sent the first-ever tweet—announced that he was going to sell this content as an NFT. In the end, it sold for $2.9 million to a businessman from Malaysia.

Related: Jack Dorsey Is Selling His First Tweet, But Why?

NFT Controversies

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In the end, things didn’t quite work out as people had expected. NFTs became entangled in some controversies early on, and the concept died out over the next few weeks.

ArtStation, one of the most popular digital platforms for artists, faced a lot of backlash over an announcement that they would be integrating NFTs in their own platform. Many people—including large numbers of artists—immediately objected to the idea, raising concerns about ownership, theft, and profiting from others’ work.

The controversy was severe enough that ArtStation eventually retracted their statement, announcing that they’ve put their plans on hold.

Meanwhile, the idea was under attack from another side. Cryptocurrencies were already in hot water over the last couple of years due to growing concerns about their environmental impact.

Many have started to voice their displeasure over the idea that so much electricity is being used on verifying transactions, something done much more efficiently in other established networks (like credit card processors).

Ethereum, which is fundamentally linked to NFTs, was also one of those cryptocurrencies. As a result, many started to attack NFTs themselves, as well as their supporters, accusing them of destroying the environment for their own financial gain and entertainment.

Related: What Is Etherum and How Does It Work?

The popularity of NFTs kept dying down, until the market was proclaimed to be in a state of collapse around the beginning of June. Those who saw the warning signs early on managed to jump ship, but others were not so lucky. The value of many NFTs quickly degraded before some could cash out.

Was the Writing on the Wall All Along?

The dust is still settling on NFTs and their short-lived hype. But many people claim that they saw this coming from a mile away, and that the collapse was inevitable.

There have been lots of discussions about the NFT market’s rise and fall in the last couple of weeks, and some seem firmly convinced that the huge hype around it—and the controversies that followed—were largely fabricated to serve the interests of people with resources.

Whether that’s true is hard to tell, but it’s definitely a possibility. We’ve already seen how volatile the cryptocurrency market can be, and how others have successfully manipulated it in the past.

The NFT Market Collapse: What Happens Now?

NFTs didn’t really change anything in the long term. They did, however, teach many people to be more cautious about their investments—and to treat volatile markets with greater care.

Whether or not a similar idea will emerge is hard to tell. NFTs were a one-of-a-kind thing for the most part. And while it’s true that the market for them still exists, it’s only vaguely reminiscent of what it used to be.

With that in mind, and considering the overall skepticism that has developed around the concept, it’s probably not very reasonable to expect something similar to appear anytime soon.