BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home BUSINESS

Morgan Stanley Analysts Begin to Determine if NFTs will Crash like LUNA

BlockNews Team by BlockNews Team
August 12, 2022
in BUSINESS, CRYPTO, NFT
Reading Time: 2 mins read
1
SHARES
15
VIEWS
Share on XShare in TelegramShare on Reddit

Following the collapse of Terra’s LUNA token and UST stablecoin, analysts at Morgan Stanley have declared that non-fungible tokens (NFTs) may be the next cryptocurrency sector problem.

According to a research note obtained by Benzinga, the bank’s equity strategists led by Sheena Shah identified NFTs and digital real estate as areas to keep an eye on because of the high degree of speculation linked with trading them.

“Mass liquidations are occurring in hyped and leveraged parts of crypto, such as decentralized finance and crypto-backed stablecoins, as it becomes more evident that all the exorbitant prices were bought on speculation with little actual user demand,” the experts added.

While some have lauded the rise of NFTs as a way to invest in digital art and collectibles, others have raised red flags about their potential for scams and lack of regulation.

NFTs are digital assets that are unique and not interchangeable. They’re often used to represent items in video games or online worlds, but they can also be used for more practical purposes like tracking provenance or ownership of digital assets.

The value of NFTs is derived from their uniqueness, which can make them more susceptible to manipulation than other types of digital assets.

Some had compared the current NFT mania to the rise of initial coin offerings (ICOs) in 2017, which resulted in many investors losing money when the bought tokens failed to hold their value. It’s still too early to tell whether NFTs will suffer the same fate, but the Morgan Stanley note suggests that the hype surrounding them is not sustainable in the long term. With the recent decline in the price of Bitcoin, NFTs may become the next target for speculators looking to cash in on the latest crypto craze.

Continuous Dwindle of the Crypto Market

According to the trading firm, over three-quarters of the top 100 digital currencies have seen their peak price over the previous year, but they are down an average of 62% from their 2021 all-time high.

Based on a recent analysis from other professional traders, cryptocurrencies are now facing an existential crisis. According to the report, many market participants appear to be losing money at the moment; this might result in more forced liquidations.

“There was a lot of interest in the digital assets, such as NFTs and digital land, that were directly related. Many people bought these assets expecting someone else to pay a higher USD price.”

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: cryptomorgan stanleyNFT
TweetShareShare
BlockNews Team

BlockNews Team

DON'T MISS THESE! HOT OFF THE PRESS

Market Summary: What Happened in Crypto Today?
CRYPTO

Market Summary: What Happened in Crypto Today?

September 3, 2025
Fat-Finger Error Dumps Pump Fun Streamer Coin 99%, Then Surges 10,000%? Here is What Happened
CRYPTO

Fat-Finger Error Dumps Pump Fun Streamer Coin 99%, Then Surges 10,000%? Here is What Happened

September 3, 2025
Solana Memecoin TROLL Acquires IP Rights to Trollface Meme: Here is Why This is Game Changing
CRYPTO

Solana Memecoin TROLL Acquires IP Rights to Trollface Meme: Here is Why This is Game Changing

September 3, 2025
Flipping Memecoins: Can It Really Be a Full-Time Job?
CRYPTO

Flipping Memecoins: Can It Really Be a Full-Time Job?

September 3, 2025
Fed Signals Multiple Rate Cuts Coming in 2025: Here is Why
BUSINESS

Fed Signals Multiple Rate Cuts Coming in 2025: Here is Why

September 3, 2025
Trump-backed ‘American Bitcoin’ Stock Trading Halted After Explosive Opening: Here is What Happened
BITCOIN

Trump-backed ‘American Bitcoin’ Stock Trading Halted After Explosive Opening: Here is What Happened

September 3, 2025
Load More

Related News

Market Summary: What Happened in Crypto Today?

Market Summary: What Happened in Crypto Today?

September 3, 2025
Fat-Finger Error Dumps Pump Fun Streamer Coin 99%, Then Surges 10,000%? Here is What Happened

Fat-Finger Error Dumps Pump Fun Streamer Coin 99%, Then Surges 10,000%? Here is What Happened

September 3, 2025
Solana Memecoin TROLL Acquires IP Rights to Trollface Meme: Here is Why This is Game Changing

Solana Memecoin TROLL Acquires IP Rights to Trollface Meme: Here is Why This is Game Changing

September 3, 2025
Flipping Memecoins: Can It Really Be a Full-Time Job?

Flipping Memecoins: Can It Really Be a Full-Time Job?

September 3, 2025
Fed Signals Multiple Rate Cuts Coming in 2025: Here is Why

Fed Signals Multiple Rate Cuts Coming in 2025: Here is Why

September 3, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews