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

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

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Crypto entrepreneur Sina Estavi put the tweet up for resale on the popular NFT marketplace OpenSea last week, initially asking for $48 million. That price tag was removed after offers in the first week were in the low hundreds of dollars. As of Thursday, the highest bid was 2.2 of the cryptocurrency ether - equivalent to around $6,800.

The Greater Fool: The man who bought Jack Dorsey’s first tweet and failed to sell it for $48 mn
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 play
Estavi 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 alerts
Warnings 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. Estavi ended up buying Dorsey’s NFT for $2.9 million, a hefty sum which the Iran-born crypto entrepreneur felt was justified due to its uniqueness and association with a valuable company like Twitter.
 
Last week, Estavi put the tweet up for sale on OpenSea, asking for $48 million, half of which he said would be donated a US charity called GiveDirectly.
“My offer to sell was high and not everyone could afford it,” Reuters quoted Estavi as saying, adding that the crypto entrepreneur was no longer sure if he would sell the NFT.
Estavi further tried to brush off the humiliating rejection of his sales bid as him being choosy. "It's important to me who wants to buy it, I will not sell this NFT to anyone because I do not think everyone deserves this NFT," Estavi said.
What went wrong?
The fact that Estavi planned to donate half the proceeds from the sale could have played against him, with people viewing it as an attempt to mop up a profit of several million dollars in the name of charity, The New Statesman reported.
The lack of enthusiasm could also have been caused by Estavi’s sketchy history, recent jail term and two failed businesses. Estavi was arrested in Iran in May 2021 on charges of "disrupting the economic system". He had issued a cryptocurrency token, described as “fraudulent” by the Iranian authorities. Two of his crypto ventures, Bridge Oracle and CryptoLand, collapsed following his arrest.
Meanwhile, some believe Estavi’s NFT saga could have been a new bid for attention. “Bidders just realised what it was–a publicity stunt. A way to get exposure,” Forbes quoted NFT collector Blake Moser as saying. “I do think Sina Estavi accomplished what he was looking for–exposure to his NFT.”
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