As floor prices for popular non-fungible token (NFT) collections plummeted along with the wider cryptocurrency market, one NFT expert believes this is a good opportunity for investors within the space.
In a Cointelegraph interview, Ahren Posthumus, the CEO of NFT marketplace Momint, shared his thoughts on the compelling use cases of NFTs, their role in contributing to climate action, and what NFT investors should be focusing on during the current bear market.
Posthumus believes that the splitting of the largest assets may be the next big thing for NFTs. Citing the stock market as an example, the executive believes that breaking up expensive assets into smaller, more affordable chunks will make the assets more attractive to retail investors. “This is what the stock market did to invest in companies, and it was very successful,” he said. The executive explained that:
“Perhaps the application of blockchain with the greatest potential for future utility is fractional ownership of assets, sometimes called tokenization, which the general public has never before had access to.”
Apart from this, the NFT expert also highlighted that NFTs could contribute to climate action and positively influence efforts to deal with environmental issues. Although NFTs are often associated with works of art, Momint’s CEO stressed that they are digital certificates of authenticity. This makes it an optimal medium for carbon credits.. Furthermore, Posthumus explained that:
“You can launch NFT projects that are specifically designed to raise funds for environmental initiatives. In this way, you can take advantage of the NFT hype to generate funds and awareness for environmental causes.”
When asked if it is a good idea to buy NFTs during an ongoing crypto winter, the executive replied “yes”, but urged investors to check the underlying value and fundamentals of assets before investing.
Finally, As the world experiences a recession, the executive said it would be a safer bet to invest in blockchain infrastructure like Ethereum. “Some blockchain applications will emerge triumphant, but many will fade into obscurity,” Posthumus said.
In the first half of 2022, NFT investors have spent 963,227 Ether (ETH), worth about $2.7 billion, minting NFTs on the Ethereum blockchain alone, according to a report by data firm Nansen. Other blockchains like the BNB chain (BNB) had $107 million in NFT mintages, while Avalanche (AVAX) had $77 million.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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