An actual NFT success story? Tascha Labs’ shattered diamond
In 2021, through the peak of $NFT-mania, an angel investor and macroeconomist named Tascha Che (aka Tascha Labs) introduced her plan to purchase a $5,000 diamond, create an $NFT of it, then smash it to items.
The stunt, meant to show that, whereas bodily objects may be destroyed, digital footprints can without end retain worth, was extensively criticized by most exterior of cryptocurrency and $NFT circles.
However because the full collapse of the $NFT markets and liquidity falling to close all-time lows, how has the shattered diamond $NFT carried out?
Diamond background
Che got here up with the concept after posting a speculation to Twitter:
As soon as the tweet acquired sufficient traction, she pursued the idea. In August of 2021 she bought a 1.3 carat diamond on-line, had it delivered, after which began to work on methods she may destroy it.
When you make a $NFT of an actual diamond, and the diamond itself will get destroyed in a hearth tomorrow, you continue to have the identical asset.
As a result of the token nonetheless exists and is in restricted provide simply as earlier than. Nothing has modified.
What $NFT is doing to the idea of asset, few perceive.
— Tascha (@TaschaLabs) August 22, 2021
Her preliminary plan — to hit the diamond with a hammer — failed miserably, however she was finally capable of go to a mechanic who used some kind of drill to obliterate it totally free.
The subsequent step was to mint the now-destroyed gem on an $NFT market so that folks may bid on it.
This proved to achieve success.
In September of 2021 a consumer bought the $NFT for 5.5 $ETH, valued at +$17,000 on the time and over 3 times the worth Che paid for the diamond.
Whereas Che immediately took to social media to proclaim that her speculation had been proved appropriate, the fact was {that a} single sale couldn’t presumably show that each one digitized belongings may retain worth despite their destruction.
Diamond palms
After buying the $NFT, Ivan Zhang, a decentralized finance proponent and investor, held it till lastly promoting in October of 2025 — for an astounding 11 $ETH, or $43,000 on the time.
The destroyed diamond $NFT had as soon as once more practically tripled in worth, regardless of one carat diamond costs plummeting in worth practically 40% over that very same time interval.
So, was Che’s speculation appropriate in any case?
In no way.
Not worth retention, an web artifact
As admitted to by Zhang when posting in regards to the sale, diamond costs will proceed to go down as synthetics turn out to be simpler to make and demand from retail dries up.
However one way or the other the $NFT has continued to realize worth.
If the $NFT was merely designed to retain the worth of a destroyed bodily good, one would anticipate to see an equal rise or decline in worth.
Nonetheless, an analogous 1.3 carat diamond accessible for buy on the identical web site that Che bought hers from is now price between $3,500-$4,000, a decline of over 20%.
Over that point interval, the destroyed diamond’s worth has ballooned to $43,000, or a rise of 760%.
If something, Che’s experiment has confirmed positively that there’s little to no expectation of worth retention of actual world, bodily items which might be digitized and made into an $NFT. One simply must be fortunate and hope that their concept goes viral.
