The CEO of the Terra Virtua platform, Gary Bracey, believes that despite the rapid development of the non-exchangeable token (NFT) industry, it should be treated with caution.
NFT tokens act as collectible items and differ from conventional cryptocurrencies in their rarity. Thanks to their uniqueness, NFTs have a value similar to real art objects. The NFT market, which sells art, games and other collectibles, has seen significant growth in recent months.
According to NonFungible, sales volumes on the two leading trading platforms CryptoKitties and Decentraland, which use collectible tokens, have already reached $38 million and $37 million, respectively. However, despite such a sharp increase, Bracey believes that it is not necessary to place high hopes on this area. According to him, art is very subjective: “some may be fans of Michelangelo, and others may love Mickey Mouse.”
The development of NFT is observed not only at large sites. So, the management of the platform for trading digital works of art SuperRare reported that in October it was possible to sell items worth about $4 million. According to Dune Analytics, the NFT industry achieved particular success in September 2020, when the total monthly sales of NFT tokens exceeded $6.2 million. However, in October, this figure fell sharply back to $3.9 million.
“The NFT industry is growing like a soap bubble, there is a lot of activity in it. Nevertheless, a relatively small audience is interested in NFT tokens. The race hasn’t started yet, the community is just warming up,” Bracy said.
He added that despite the promising prospects of some platforms, the mass adoption of collectible tokens is necessary for the sustainable development of the NFT industry. To do this, you need to inform people about the benefits of blockchain and NFT, as well as create content and “works of art” that have value.
Recall that in November last year, the Gemini cryptocurrency exchange bought the Nifty Gateway platform, where users can purchase non-exchangeable tokens. The Winklevoss brothers are convinced that NFT tokens are ” unique assets on the blockchain.”