Vignesh Sundaresan, known by the cryptocurrency community as MetaKovan, made headlines in March for its record-breaking purchase of Beeple’s “Everydays: The First 5000 Days” NFT for over $ 69 million.
As the founder of the Metapurse NFT project and a major provider in the space, you would guess that he would be completely bullish on NFTs. But Sundaresan warns that those trying to monetize the tokens are “taking a huge risk,”
NFTs are “not primarily an investment … It’s even crazier than investing in crypto,” he said.
NFTs or non-fungal tokens are unique digital assets, including jpegs and video clips, represented by code recorded on blockchain, a decentralized digital ledger that documents transactions. Each NFT can be bought and sold, just like a physical asset, but the blockchain provides the opportunity to track ownership and validity.
While the market for NFTs has grown this year, things have recently taken a turn. Sales volumes for tokens have apparently declined with a drop in prices. (Although not everyone thinks NFTs are a bubble.)
Sundaresan is very supportive of NFTs, but “I don’t think NFTs will keep the same kind of hype forever around valuable topics,” he said.
“The market will be divided. There will be very few high value goods and an infinite number of very valuable goods.”
Similarly, Mike Winkelmann, the artist known as Beeple, compared the NFT market to the dotcom bubble. Just as some companies, like Amazon, survived the final bust and others did not, Winkelmann predicts that parts of the NFT market will thrive while others will wither.
“I’m very, very bullish on technology and space in the long run,” Winkelmann recently told CNBC Make It. “I just think people need to be careful right now because there [was] a rush and it’s so new. It’s pretty speculative. “
As Bloomberg pointed out when Sundaresan was revealed as the eight-digit buyer of Beeple’s NFT, some speculated that it was increasing the price of his own NFT collection. But Sundaresan denied it, telling Bloomberg that his motive was to “support the artist and showcase the technology.”
“That [Beeple] piece will have its own life, that’s what makes NFTs really interesting, “Sundaresan told CNBC in March.” It may not just be a work of art, it can become thousands of other things. But I’m not selling it anytime soon. “
Sundaresan predicted that “there will be hundreds of thousands of people from all over the world who will adopt this medium, a digital native medium to monetize art,” he said.
“There will be an economy around it.”
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