Modern Tulip Mania

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(Photo by FriendlyMoose)

Almost two weeks ago I had a stroke of luck with a blockchain game I had been playing for a while. There was a sudden hype around the game Alien World which caused the in-game NFT’s and currency to skyrocket. The prizes people were paying were really ridiculous.
I’ve profited quite well from this by selling some tools and all of my tokens.

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Last week I visited the famous Dutch flower fields to take some photographs when I remembered a story I once read. I thought the story had quite some similarities with the events that happened two weeks ago.

Dutch Tulip mania

In the Golden Age (17th century) the Netherlands was already famous for it’s fashionable tulips. Dutch tulip bulbs were in great demand. Requests for the bulbs came from all over Europe. There was such a great demand that the prices of the tulip bulbs reached extraordinarily high levels. At the peak of tulip mania, in February 1637, some single tulip bulbs sold for more than 10 times the annual income of a skilled artisan.

In 1635 40 tulip bulbs were sold for 100.000 Dutch guilders. At that time you could buy multiple canal houses in Amsterdam for that. The most famous bulb was the Semper Augustus. A single bulb of this tulip was sold for 6000 guilders.

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(source:wikipedia)

The crash

And then the inevitable happened. On Tuesday 3, 1637 the value of the tulip bulbs collapsed.
There was a huge chaos; merchants were fighting over the validity of the contracts and it appeared that a lot of florists had sold tulips they didn’t even have to buyers that couldn’t even afford them.
A lot of investors were ruined by the sudden fall in prices.
The Tulip mania is generally considered to have been the first speculative bubble in history.

Alien World

Now back to Alien World. As I mentioned in the beginning the NFT's were highly overpriced during the craziness. After a few days the value already decreased significantly. A lot of people profited from this. I read a couple of other Lions made nice profits too.
But where there are winners, there are losers too. There must be a lot of people that lost money. So always be careful when there is a hype because you can win, but certainly also loose serious money.

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[Source:wikipedia]


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FriendlyMoose

I'm crypto and security enthousiast with a passion for photography that likes to play games.

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Bang, I did it again... I just rehived your post!
Week 53 of my contest just started...you can now check the winners of the previous week!
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Overpriced markets are great if you can get out and take the money. They are bad if you ride it all the way to the bottom, especially if it is something that will never recover like the tulips.

I have a feeling there will be many NFTs that are like the tulips just like there were many Cabbage Patch Dolls 30 years ago that ended up in the landfill after going for obscene amounts of money.

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It's funny to see that the 'FOMO' goes ways back. I had to Google your example of the Cabbage Patch Dolls since I didn't know them. That again shows it's something of all times...

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I do agree that the prices have been pretty crazy and high. Although they have fallen a bit now (okay a lot right now), I still think there is going to be a demand and this likely won't be the last time we see some crazy prices with Alien Worlds. Especially as they start to release more game content and the demand for TLM goes up. If the price of TLM rises that should drive up the cost of everything game related.

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Maybe I should take a second look at Alien Worlds then. Thanks for bringing this up.

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Yeah, no problem. Dark Country is going to get pretty big too I think. WAX in general has a bright future.

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And this new MuTerra game has Wax and Hive I read.

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Yeah, I have been getting some airdrops from there.

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