NFTs must be backed by real value
Few would argue that the NFT market is overheated right now. According to NonFungible, between September 2021 and May 2022, NFT sales fell by 92%. Add to this the general bearish trend in the crypto industry right now and we get a rather sad picture.
The NFT hype of 2021 was built primarily on digital art and GameFi, which is why the technology became associated with virtual value in the mass consciousness.
In fact, NFT technology is nothing more than a blockchain certification system that can be used to mark any asset — real and virtual, or tokenize rights. However, if you link non-fungible tokens to real assets, then there are difficulties with logistics or transfer of ownership within the traditional legal infrastructure. It is much “easier” to trade pictures and in-game assets. This was thought during the 2021 crypto bull market and… shot themselves in the foot, undermining the confidence of the general public. The situation is aggravated by the increasing cases of insider trading.
Can NFTs get out of the crisis?
This will not be easy, given that the very acronym NFT now causes a negative reaction in many people. It’s all because of the thirst of NFT enthusiasts to quickly earn money on pure hype, they do not want to build an infrastructure that connects NFT with the real economy. Why, sometimes even a virtual environment cannot be adequately built — we are talking about a lot of raw GameFi projects, where developers are in such a hurry to dump their Play2Earn creation on the market that they do not pay due attention to the gameplay, which is why interest in the game quickly disappears.
Few people are ready for long-term investments, almost everyone is trying to ride on the hype and get out on time. However, Ebay and Amazon emerged from the dot-com boom, cryptocurrencies have also been repeatedly buried, but they always rose again. We list a number of principles that can help NFT get closer to reality, no longer relying on hype alone.
How can NFT get closer to reality?
NFT enthusiasts will have to accept the harsh reality that the technology must be tied to real values if they are to reverse negative public opinion. There are several approaches here:
- The most obvious is to use NFTs to label real assets like real estate or vehicles. This makes it possible to simplify such procedures as rent, carsharing, barter exchange.
- Another viable approach is to use the NFT as a ticket to real events — concerts, lectures, tour packages, etc.
- The third option is to use NFT to secure copyright for designs directly related to production. Examples are molds for jewelry or 3D models of buildings, according to which real houses will be built, etc.
Of course, the implementation of such opportunities will require large investments, contracts with logistics and legal services, but this is currently the only way for NFT technologies to go beyond the virtual sphere.
Use our apps:
Barter Smartplace — trade real and digital assets for cryptocurrency.
Barter Wallet Bot — use free cryptocurrency transfers in Telegram and earn 22% per annum.
Subscribe to read our publications:
Join our crypto community — BRTR Holders:
