Vignesh Sundaresan, known to the cryptocurrency community as MetaKovan, made headlines in March for his record acquisition of NFT’s “Everydays: The First 5000 Days” for over $ 69 million.
As the founder of the Metapurse NFT project and a big spender in space, you would think he would be completely optimistic about NFTs. But Sundaresan warns that those who try to take advantage of chips “take a huge risk,” he told Bloomberg.
NFTs “are not primarily an investment … It’s even crazier than investing in crypto,” he said.
NFTs or non-fungible tokens are unique digital assets, including jpegs and videos, that are represented by code recorded on the blockchain, a decentralized digital registry that documents transactions. Each NFT can be bought and sold, just like a physical asset, but the blockchain allows you to track ownership and validity.
While the NFT market has grown this year, things have recently taken a turn. Token sales volume has apparently declined, with prices falling as well. (Although not everyone thinks NFTs are a bubble.)
Sundaresan strongly supports NFTs, but “I don’t think NFTs will have the same kind of hype forever around high-value items,” he said.
“The market will be divided. There will be very few high value items and an infinite number of very low value items.”
Similarly, Mike Winkelmann, the artist known as Beeple, compared the NFT market to the dotcom balloon. Just as some companies, such as Amazon, have survived the bust, and others have not, Winkelmann predicts that parts of the NFT market will thrive, while others will wither.
“I’m very, very optimistic about technology and space in the long run,” Winkelmann told CNBC Make It recently. “I think people need to be careful right now because they are there [was] a rush and it’s so new. It’s pretty speculative. “
As Bloomberg pointed out, when Sundaresan was revealed to be the eight-digit buyer of Beeple’s NFT, some speculated that it would increase the price of its own NFT collection. But Sundaresan denied this, telling Bloomberg that his motive was to “support the artist and present the technology.”
” [Beeple] the song will take on a life of its own, which makes NFTs really interesting, “Sundaresan told CNBC in March.” Maybe it’s not just a piece of art, it can become thousands of other things. But I will not sell it soon. “
Sundaresan predicted that “there will be hundreds of thousands of people around the world who will adopt this environment, a native digital environment to monetize art,” he said.
“There will be an economy around it.”
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