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Why NFT Art Could Lose Value

“In short: Right now NFTs are built on an absolute house of cards constructed by the people selling them. It is likely that every NFT sold so far will be broken within a decade.”

– Software engineer Jonty Wareing, on how NFTs actually reference media. “The NFT token you bought either points to a URL on the internet or an IPFS hash,“ he explains his findings in a (viral) Twitter thread. “In most circumstances, it references an IPFS gateway on the internet run by the startup you bought the NFT from. Oh, and that URL is not the media. That URL is a JSON metadata file.