SAN FRANCISCO – Last week, a chrome with the image of the marshal of Camp Tom Brady was sold for a record figure of 1.3 million dollars. The total value of the bitcoin cryptocurrency is 1 trillion dollars. And Christie’s sold a digital art work by an artist known as Beeple at $ 69.3 million, despite the fact that it started only $ 100.
Parecen are singular successes, but are connected, as part of a series of maniacs that have fascinated the world financially. During months, professional and habitual inversionists raised prices for actions and wealth. Now, the frenzy has flooded the most active assets — in some cases, the most penalized — between its objects and digital media, cryptocurrencies, collectibles like chrome, and including sports shoes.
The repentance increase has produced a set of particular conditions. Although millions of people were killed during the pandemic, the bank accounts of many other prosperous countries, provided with aid checks and injections of effective governance in the economy. Without embargo, while the money accumulates more money, the traditional inversions like the stocks and bonuses become less attractive.
Many are creative creatures and, aburridos during the pandemic, will carry more risks. Recently, redundant and discordant online communities have been debating the latest popular inversions. It also retrieves technological tools such as the Robinhhood bursary operations application and the Coinbase cryptocurrency platform, which allows it to compile and exchange distinct articles with the click of a button.
As of today, it has created miniburbujas in a large variety of esoteric categories, the one that has been acclaimed as solitary is down, like SPAC and NFT, which are ubiquitous like the S&P. We have also filed a lawsuit against the public contributions that were made last week by companies such as the video game site Roblox and the e-commerce company Corea del Sur Coupang, as well as the actions of the Ministions of GameStop games and others ”.
“Simply put, it’s a cycle in which the diner does not have much more to do, so it’s what stupid things are,” said Howard Lindzon, investor, seller and market commentator.
Mucho riesgo … y muchas pérdidas
The maniacs, the coules are breaking in a moment of deep economic prosperity, there has been a great deal of risk over many inversions. Some people have accumulated impactful losses in Robinhood, but it has been accused of behaving in an inappropriate manner in the aftermath. Other assets, such as bitcoin, are volatile, while the sports stocks and NFTs are so new and publicized that it is difficult to predict their value over time.
For now, the behavior of a bureau on another bureau does not represent a systemic risk to the general financial system. Sondeverbod, some inversion signalers that institute intranquilos.
“The mayor of the people is alive, but at the same time he goes to bed and is asked when he will be in bed,” said Jane Leung, director of investments at SVB Private Bank.
One of the people who became involved in the frenzy was Matthew Schorr, a 35-year-old lawyer in Cherry Hill, New Jersey. For years, Schorr has been in the throes of popular inversions, losing interest in the bursa market and abandoning bitcoin when his friends decrypt the cryptocurrency of “fake money”. Now, while the value of a single bitcoin has been lost by as much as $ 57,000, it is said that even the bitcoin used to pay for a Domino’s pizza in 2011 is worth more than $ 450,000 in actuality.
The new fashion of the NFT
Schorr no quiso quedar excluding new. For that matter, enero, guest $ 5,000 to buy 351 NBA Top Shot videos, and it’s not important for commercial videos featuring the best balancing acts, despite having a charla on social media about the sale of videos in tens of miles of dollars. The value of these videos has now been raised to $ 67,000, according to Momentranks.com, a site that monitors sales.
The videos are a known type of inversion as draw no fungible (NFT, by his seal in English), the songs he despised in music, art and sports. These digital months use computer speeches to demonstrate that a digital article — like a video, an image of a song — is authentic, whatever the value of the article, less than the person it understands. Some people compare the NFT with digital chromos (the creators of the base of the suelen works preserve the author’s rights).
Skeptics consider that the NFT is one of the most questionable assets, since an NFT image can be copied and shared without paraphrasing. However, there has been a significant increase in the value of authenticating tokens that he has covered in another phenomenon: the “digital exclusion tool” or FOMO syndrome.
All started with financial aid
Good part of this impulse of the inversions commenced the year passed after that propagated the coronavirus and the global economy cayó in picada. In response, the United States reports the interest rates, includes governing bonuses and approves aid packages. Germany, Brazil, Japan and other countries tomaron medidas similar.
These maneuvers will have a double effect: increase the amount of money in the global financial system and also help the people to earn a living. Last month, deposits in state bank accounts read 16.45 trillion dollars, more than 3 trillion above the 2020 level, agreed with Federal Reserve dates. The case of interest that the Federal Reserve has been looking for since March.
The low interest rates are very attractive, the traditional inversions like the bonuses, while the stocks, the stocks have been around for a decade, are becoming more expensive today. It’s more expensive to start investing in non-traditional assets.
With the NFT, the escalator hysteria with speed. Last week, a Nyan Cat GIF NFT, the showman had a flying dog animated with a Pop-Tart body, sold for $ 580,000. Other artists, such as Grimes and Steve Aoki, will be able to collect millions of graceful dollars in their digital artwork. Luego, el jueves, Beeple, cuyo nombre verdadero es Mike Winkelmann, vendio su NFT “Everydays – The First 5000 Days” por la impactante suma 69,3 millons de dolares.
The launch of the SPAC
The inversionists also gravitated towards the acquisition of special proposal acquisitions (SPAC, by its English seal). Many people have launched money into these financial vehicles, commercial vehicles in the public market, including their ghost companies and operations. The creators promise the shareholders that they will find a private company with the merger to make their debut next to the company in the public markets.
This year, the SPAC has received many copies of the new corporate memberships in a relationship between one and another, in agreement with Renaissance Capital, a company that monitors financial contributions. Some investment firms he launched three or two SPACs at different times, while celebrities and sports stars — among them Shaquille O’Neal, Serena Williams, Colin Kaepernick, and Ciara — formed the suyas.
On the other hand, the SPAC merged with companies that never won a single dollar. In my past, there were electric air taxis that would not have taken anything in years — Joby Aviation and Archer Aviation — SPAC announced that they were valued at $ 6,600 million and $ 3,800 million respectively.
Tennis as an inversion
The sale of sports equipment has also exploded. And StockX, a comparable brand to eBay, does not provide a good compilation, and similar brands, other collectible articles, enero, las ventas de zapatos casi duplicaron la cifra de hace un año, comments Scott Cutler, executive director of the company. The Nike Dunks-style SB Low Staple NYC Pigeon is on sale for a record $ 33,400.
The more young generations want to invest in things that are relevant in cultural terms and sensations in financial terms, Cutler mentions, and the sports zapatos “from hecho are a much more stable inversion of what they are”.
The sale of chrome we have also despaired. In StockX, the price of cards in impeccable conditions was reduced to $ 775 a year in comparison with $ 280 a year ago. It is expected that Brady’s ticket will be sold every week for $ 1.3 million — one in 100 of this type of new deal — even though a similar Brady’s sale for $ 555,988 will be sold later.
Nadie can predict when the party will end. Some have prevented the generalized distribution of the vaccine and a regression to the normal post-pandemic life at the end of the era of prosperity in the style of our felines years ago. Although this decade ended with a devastating crisis, the euphoria lasted for years.
This period was called “very allocated” and produced a “technological change very fast”, said Laura Veldkamp, professor of finance at the School of Negotiations at the University of Columbia. “And there is much money to be made.”
This article originally appeared in The New York Times.
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