Elon Musk Slams NFTs Saying “It's Just URL to JPEG”

The tech entrepreneur – and not to mention, one of the richest people – Elon Musk says that NFT is just a URL to the JPEG image and “is not even on the blockchain.”

Speaking on a popular podcast – The Joe Rogan Experience, Elon said that NFTs should be at least encoded on the blockchain. “If the company housing the image goes out of business, you don’t have the image anymore,” he cited.

Elon’s comments have inaugurated a spark into the crypto community which was already a little concerned about NFTs. Responding to his comments, several NFT advocates have argued that the whole point is about tokenizing the image which essentially holds the value.

I get the point that the NFT is “worthless” without the image and that we are essentially trading the image.

Ordinals are a good example of that and the reason why many people are bullish on it.

I think Ethereum NFTs Will slowly make the move during the next cycle.
— Farokh 🇮🇷 (@farokh) November 1, 2023

While mocking NFTs, Elon has unwillingly praised the recent popular Ordinals. The Bitcoin NFTs, aka Ordinals, are image or text inscriptions that are encoded and stored on the Bitcoin blockchain.

.@elonmusk you just laid out the case for Bitcoin ordinals – image/text inscriptions directly on the most secure open source monetary network on the planet. There are currently 38 million of these inscriptions on the Bitcoin blockchain. pic.twitter.com/WASj1qpkz8
— Will (@WClementeIII) November 1, 2023

However, it’s not the first time Elon Musk is slashing on NFTs as he has previously made fun of NFTs by sharing memes.

pic.twitter.com/Wv6iJDuTge
— Elon Musk (@elonmusk) December 16, 2021

Musk’s comments however don’t stand true for all NFT projects on Ethereum. For example, Larva Labs moved its Cryptopunks NFTs on-chain in August 2021 after they lived off-chain for the first four years.

Also Read: Elon Musk Unveils Plans to Turn X into Financial Hub

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