In recent months, non-fungible tokens (NFTs) have gained a lot of attention in the crypto sector, with some tokens selling for millions of dollars. Kosala Hemachandra, CEO and founder of Ethereum Wallet MyEtherWallet, said that although the current excitement about NFT will eventually subside, the concept of NFT will continue to exist.
“NFT is currently a hot topic, but I believe the hype surrounding it will soon subside,” Hemachandra told Cointelegraph. “Similarly, due to the ICO, ERC-20-based tokens were a hot topic in 2017, and now it is not news to anyone because people use these tokens every day.”
All non-homogeneous tokens are unique and therefore different in value. They cannot be exchanged with similar assets one by one, because each NFT contains different verifiable characteristics. These differences will affect the rarity of each token (and sometimes their usefulness in the ecosystem), even if they look similar at first glance.
“The value of NFT depends entirely on how much the interested person is willing to pay,” Hemachandra said, adding:
“If someone is really interested in a certain NFT sold in 2021, I guarantee that he will pay any amount to buy it in 2030. That’s why we can’t say that the 2017 CryptoKitties are worthless now. I dare Certainly, even now, if the current owner is willing to sell, some people are willing to get these unique tokens at a higher price.”
CryptoKitties is the first implementation of NFT, and it was very popular in the encryption field as early as 2017.
Nadav Hollander, co-founder of crypto lending platform Dharma, said that NFT is similar to the initial coin offering (ICO) in 2017. On February 24, he wrote on Twitter: “NFT will feel like an ICO, with high-value sales for 6 to 9 months, followed by a crash that lasts for many years.”
Although Hemachandra questioned the rationality behind the current market hype, he believes that the potential of the NFT niche market is huge. “Is it ownership or ownership status? The attraction of NFT now is to hold an NFT status.” He added:
“NFT is very popular, just as Lamborghini is very popular with Bitcoin purists. I think the current version of non-homogeneous tokens will continue to develop into larger and wider use cases. Such as real estate and tangible property ownership certification; Any place where NFT can help enforce legal actions. Only then will things really become interesting.”
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.