As a seasoned analyst with over two decades of experience in the tech and finance industries, I have witnessed numerous cycles of boom and bust. From the dot-com bubble to the 2008 financial crisis, I’ve seen it all. Yet, I find myself intrigued by Yat Siu’s bullish outlook on NFTs, despite their recent struggles.
According to Animoca Brands chairman Yat Siu, non-fungible tokens (NFTs) are expected to regain popularity and outperform their performance from the height of 2021.
In an interview at the Bitcoin MENA event in Abu Dhabi, Siu predicted that Non-Fungible Tokens (NFTs) will become even more prominent than they were during the years 2021 and 2022. During those times, NFT sales volumes per month fluctuated between $1–5 billion, reaching a high of $6 billion in January 2022, as per CryptoSlam’s data.
Ever since then, the sales volumes of NFTs have been dwindling, failing to surpass the $1 billion mark. Even projects that were expected to thrive have unfortunately ceased their operations. On November 26, the crypto exchange Kraken announced the closure of its NFT division, while on December 2, RTFKT – an NFT project owned by Nike – declared it would be shutting down its operations come January.
However, Siu remains bullish on NFTs, saying failures are a natural part of business.
Some projects will work, and some will fail
Siu expressed that the situation with RTFKT was both unfortunate and disheartening, yet emphasized that it was merely a project that failed to materialize. This, he suggested, doesn’t necessarily reflect negatively on the wider NFT (Non-Fungible Token) market. In conversation with CryptoMoon, he elaborated this point.
“That’s true for companies too. How many fashion brands and shoe brands or gaming companies or whatever have launched products and they haven’t worked, and then they shut down. That’s life, right? So, you know, and so so I think that I don’t think we can fault them for trying.”
As a crypto investor, I acknowledge that not every project in this dynamic landscape will succeed, but I view it as part of the natural ebb and flow. Some may falter, but I remain optimistic about Non-Fungible Tokens (NFTs) carving out a niche as coveted symbols of status.
People spend money on luxury goods
Siu emphasized that Non-Fungible Tokens (NFTs) serve as indicators of social standing, much like high-end items reflecting cultural and symbolic worth. Essentially, he stated that individuals tend to invest in assets that enhance their reputation when they acquire wealth.
“When we’ve made money, we don’t spend it on making more money. We spend it on luxury goods. Nice house to live in, a car, new clothes, nice shoes. Right? These are not investments in a classical way. You can think of them as investments in your reputation.”
When a person’s esteem or standing in the community grows, they tend to encounter more chances and possibilities. He used an analogy, stating that if one possesses a Picasso painting, their reputation automatically becomes quite unique and valuable.
Siu stated that NFTs such as Bored Apes, Pudgy Penguins, and CryptoPunks are similar in nature, leading him to anticipate a strong resurgence of NFTs.
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2024-12-12 17:23