After the first wave of popularity of the NFT sphere in March and April of this year, there was the largest collapse of the crypto market in recent years. He did not bypass unique tokens, which quickly fell in price, against the background of which many experts began to predict further depreciation of NFT collections.
However, in August, the second wave of hype began, which brought the volume of transactions with NFT to a new level. Over the past month, popularity has declined again, but this does not mean «destroying the bubble». This is the opinion of Nick Tomino, a former employee of the largest American exchange Coinbase and one of the early NFT investors. Let’s talk about his point of view in more detail.
Recall that NFT or non-fungible tokens take the advantages of the blockchain to a new level. Since the blockchain is immutable and transparent, anyone can see what is happening in it. The same applies to unique tokens, which are cryptographically assigned to a specific object, painting or song.
In this regard, the developers undertook to create something and put, as it were, a certificate of the uniqueness of a certain item in the permanent blockchain. Because people value uniqueness, the topic has become popular worldwide. We analyzed the NFT topic in detail and even shared instructions for selling such tokens.
What will happen to NFT tokens in the future?
Tomino shared his thoughts on the NFT sphere in an interview with Decrypt journalists . Here is one of his quotes about his belief in the long-term development of unique tokens.
When I talk to skeptics, I talk about the equal value of an idea to belief in it. The institutional establishment over the past hundred years has largely determined what makes something valuable. For example, for stocks this is cash inflows, for real estate – its suitability for a comfortable life and commercial use.
Tomino is confident that recently the place of the institutional elite has been taken by ordinary investors who are united by the power of the Internet and even memes. Direct proof of this is the sharp rise in seemingly «useless» stocks and cryptocurrencies this year. Here we are talking about the WallStreetBets community’s dash of GameStop securities from Reddit and the Dogecoin altcoin by billionaire Elon Musk.
In addition to the idea for the rapid adoption of NFT, platforms need to focus on improving the user experience when working with unique tokens, Tomino notes. The expert continues.
It’s pretty easy. It’s part of the NFT experience that makes the whole process so unique. You must have a certain curiosity and skill to play the game. For years, people have been looking for a one-stop solution to improve the user experience, but in fact, one has not yet been found. And yet, more and more people are simply becoming more experienced and adapted to an innovative environment.
The Solana project can become a «universal solution» for the development of NFT , on the platform of which more and more collections of unique tokens appear, the investor believes. However, Tomino himself is not yet impressed by the development process of Solana, he still insists on global innovations for the NFT sphere.
In addition, the expert talked about the phenomenon of Bitcoin maximalism – the belief that only the main cryptocurrency should remain dominant in the market, and there is supposedly no point in all other cryptocurrencies.
If you believe that something has value, you can promote that idea, which is what Bitcoin maximalists are doing now. Who am I to criticize this? I have slightly different values. I think the great thing about the market is that in the end it kind of dictates the «usefulness» of certain things, right?
In other words, believing in one thing in an industry that is built on innovation is not always profitable. NFTs have truly become a trend this year and have helped make a fortune for some crypto enthusiasts out of almost nothing. This concept may well have a future until the general optimism of traders is shattered by another bearish trend.
Here is the complete transcript of the interview with the investor. We recommend that you watch to better understand what is happening in the cryptocurrency industry today. And if you understand English by ear.
We believe that NFT tokens will continue to evolve, and their functionality will also go beyond today. In the future, NFTs will most likely be used as an identity identifier to gain access to some services or resources. And since the safety of such tokens is guaranteed by the reliability of the blockchain, the idea of using such an authentication method will be more than justified.