Welcome to the latest edition of Cointelegraph’s Nifty Newsletter. Keep reading to stay up-to-date with the latest stories on non-fungible tokens. Every Wednesday, the Nifty Newsletter informs and inspires you to dig deeper into the latest NFT trends and insights.
This week’s Nifty Newsletter sheds light on declining non-fungible token (NFT) sales and whether the downfall of the NFT market is exaggerated. In other news, check out how a Japanese village turned to NFTs to help the elderly, and social media star Logan Paul has filed a lawsuit against Coffeezilla for defamation.
NFT sales fall 44% as crypto dips, memecoins steal “mind share” in Q2
A recent flood of celebrity, political and animal-themed memecoins, along with a crypto market downturn, may have contributed to a 44% fall in the sale of NFTs in the second quarter, according to Apollo Crypto’s investment chief.
Data from CryptoSlam shows NFT sales fell from $4.14 billion in Q1 to $2.32 billion in Q2 as part of a broader market downfall.
“Q2 was a difficult market with Bitcoin declining by 15%, and many altcoins performed significantly worse than that,” Henrik Andersson, chief investment officer at Apollo Crypto, told Cointelegraph.
Logan Paul sues Coffeezilla for defamation over CryptoZoo videos
Influencer Logan Paul filed a defamation lawsuit on June 27 against Stephen Findeisen, better known as “Coffeezilla” on YouTube, over videos he produced about Paul’s failed CryptoZoo NFT project in 2022.
The suit filed in a San Antonio, Texas district court claimed Findeisen “maliciously and repeatedly [published] false statements accusing Paul of operating a scam in connection with a troubled blockchain project called CryptoZoo.”
Japanese village turns to NFTs to help older adults
Yamakoshi, a secluded Japanese village nestled in the Niigata mountains, has attracted 1,700 “digital citizens” through the sale of NFTs in an initiative aimed at supporting and sustaining its aging population.
The Neo-Yamakoshi Village project, led by local residents, manages the Nishikigoi NFT collection, which is named after the vibrant breed of koi carp. This digital asset is both an identifier for Yamakoshi’s “digital citizens” and a governance token enabling participation in the village’s DAO-managed voting processes.
Why reports of the death of NFTs are greatly exaggerated
The narrative surrounding NFTs is evolving. Following a period of explosive growth and a subsequent decline in trading volumes, some members of the crypto community are questioning whether digital collectibles remain viable.
With some writing obituaries for NFTs, those working directly with the asset class beg to differ. Experts across the Web3 space believe the market is maturing rather than dying. As the hype settles, NFTs find their footing in more practical and sustainable applications.
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Thanks for reading this digest of the week’s most notable developments in the NFT space. Come again next Wednesday for more reports and insights into this actively evolving space.