Because the floor prices of popular nonfungible token (NFT) collections required a nosedive combined with the broader crypto market, an NFT expert believes that this is an excellent chance for investors inside the space.
Inside a Cointelegraph interview, Ahren Posthumus, the Chief executive officer of NFT marketplace Momint, shared his ideas on compelling NFT use cases, its role in adding to climate action and just what NFT investors should concentrate on throughout the current bear market.
Posthumus believes that fractionalization of larger assets could be the newest factor for NFTs. Citing the stock exchange for example, the manager believes that breaking up costly assets into smaller sized and much more affordable parts can make assets more interesting to retail investors. “This is exactly what the stock exchange did for purchasing companies, also it was extremely effective,” he stated. The manager described that:
“Perhaps the blockchain application using the finest possibility of future utility is fractionalized possession of assets, sometimes known as tokenization, which everyone hasn’t had use of before.”
Aside from this, the NFT expert also highlighted that NFTs could lead to climate action and positively affect efforts to deal with ecological concerns. While NFTs are frequently connected with artworks, the Momint Chief executive officer underscored that they’re digital certificates of authenticity. This will make it an optimal medium for carbon credits. Furthermore, Posthumus described that:
“You can launch NFT projects which are particularly made to raise funds for ecological initiatives. By doing this, you are able to leverage the hype of NFTs to create funds and awareness for ecological causes.”
When requested if it’s wise to purchase NFTs throughout an ongoing crypto winter, the manager clarified “yes” but advised investors to determine the underlying value and also the fundamentals from the assets before investing.
Lastly, because the world encounters an economic depression, the manager stated that it might be a much safer bet to purchase blockchain infrastructures like Ethereum. “Some blockchain applications will emerge triumphant, however, many will fade into obscurity,” Posthumus stated.
Within the first 1 / 2 of 2022, NFT investors have spent 963,227 Ether (ETH), worth around $2.7 billion, in minting NFTs within the Ethereum blockchain alone, based on a study from data firm Nansen. Other blockchains such as the BNB Chain (BNB) had $107 million price of NFT mints while Avalanche (AVAX) had $77 million.