NFTs, Once Hyped as the Next Big Thing, Now Face ‘Worst Moment’

NFTs first crossed Daniel Maegaard’s radar in 2018. He started investing in the tokens in 2019 and by 2021 held hundreds of them, ultimately ranking among the world’s best-known and influential NFT collectors. Under the pseudonym Seedphrase, he accumulated millions of dollars’ worth of the crypto tokens and famously sold one for a cool $4.45 million in 2022.

But over the last few months, Maegaard has been downsizing his collection while a critical part of the market has, in his words, “completely tanked.”

Nonfungible tokens, most popularly associated with the digital artwork and other collectibles recorded on crypto blockchains, have lost most of their value after once capturing the imagination of crypto ...