The Greater Fool: The man who bought Jack Dorsey’s first tweet and failed to sell it for $48 mn

cnbctv18.com:

Malaysia-based crypto entrepreneur Sina Estavi, the man who bought the non-fungible token (NFT) of Twitter co-founder Jack Dorsey’s first-ever tweet in March for a whopping $2.9 million, has received a top bid of just $6,800 for the niche crypto asset as on Thursday, Reuters reported. The asking price was an eye-watering $48 million.Estavi, who had once compared the NFT to Leonardo da Vinci's Mona Lisa, had paid $2.9 million for the NFT, which the Twitter boss auctioned last year for charity.

Dorsey’s first-ever tweet on the social media platform on May 21, 2006, read "just setting up my twittr".Greater fool theory at playEstavi was left holding a bag for his NFT auction as his investment case rested on the greater fool theory, which suggests that prices of (digital) assets will keep increasing despite being overpriced as there will always be a “greater fool” or a less informed or experienced person who would be willing to shell out more for the asset. Eventually, the bubble bursts when you run out of "greater fools".Missed alertsWarnings of the inflated price for the NFT had been there from the start, something that Estavi seems to have missed.

In December 2020, when Dorsey first created the NFT, it had garnered little interest, with only a few people bidding for the digital asset. Estavi got swayed in March 2021, a time when popular NFT marketplace OpenSea witnessed monthly sales jump to nearly $150 million from just $8 million two months prior.