Non-fungible tokens (NFTs) are both loved and hated. While some praise them for their unique features, others are not as impressed. We examine both sets of arguments.
Non-fungible tokens (NFTs) have long been buzzed about. Unlike Bitcoin or other cryptocurrencies, NFTs can’t be replicated. Hence the name.
In this article, we will take a look at what people are saying about NFTs.
What do the lovers say?
Above all, the NFTs allow you to own pieces of something unique, – a concept that well appeals to some investors hooked on the idea of possessing something that others are unable to.
The higher in the hierarchy an NFT is, the prouder its holder is.
Otherwise, why would you spend hundreds of thousands of dollars on a Bored Ape pic instead of a lavish trip abroad or a Lambo?
They will also point out that there is a wide array of NFTs available in the market. So wide that some of them have a very unusual twist to them and can be described as naughty. For example, the Cum Rocket, an adult crypto platform with its own NFT marketplace that we reported on (make sure to read about it here).
And that is just one of the many examples. If you go to hugely popular marketplaces like OpenSea, you will find even more options that cater to just about every person out there and are not necessarily crazy expensive. In fact, some options are surprisingly affordable.
Even Anthony Hopkins, one of the greatest actors of modern times, launched his very own NFT collection. And he’s no youngster.
Then there is the fact that the NFT market keeps attracting new users. In November, we reported that the number of unique NFT traders increased by 18%, hitting the 1.11 million mark and showing that the interest is there.
What do the haters say?
They will definitely point out that it is a highly substandard and risky investment. Or as one commentator put it: “Has anything good ever come from NFTs? Aside from the Christopher Moltisanti meme, I mean. I really can't think of anything.”
They will also highlight that last year, Blockverse, an unofficial play-to-earn Minecraft NFT game, disappeared with more than $1.2 million, just several days after selling out its initial offering of 10,000 NFTs in under eight minutes.
And that’s just one of the many scams, they’ll add. Such a supposition was put forward, for example, when the former president of the US Donald Trump, and the collection that was sold out within one day. GNCrypto analyzed that instance.
They’ll likewise talk about wash-trading, emphasizing that some NFT projects and marketplaces often inflate their trade volumes and create fictitious transactions and that NFTs are susceptible to hacks. While that is not really big news in the crypto world, it may also result in a highly detrimental outcome. GNCrypto reported about one such hacking scheme.
So, who’s right?
As with all investments, the choice boils down to your individual preferences and beliefs. There is no use denying that projects like Bored Apes or Cryptopunks have become close-to-iconic in the NFT space and have attracted millions in investments.
It is also true that to date in 2022 the Ethereum NFT sphere has seen 8.22 million ETH in trading volume across 2.46 million unique wallets.
But it is likewise that one has to analyze the risks before entering this domain as Blockverse is not a unique case in the NFT space.
Money has the quality of evaporating unless being handled with care. So, do your research well and you are guaranteed to find out the answer.
