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NFT Financialization Products Will Win In The Long-Term

NFT Marketplaces like Nifty Gateway, Opensea, Superrare are presently the main money making businesses in the NFT world. This is because almost all trading of NFTs currently involves the NFTs themselves so the only people involved in a trade are the NFT seller and buyer.

NFTs by design are ‘non-fungible’ but as we have seen with NFTx and couple other DeFi x NFT products, there is demand for speculating on a ‘fungible’ NFT derivative product by people who might not want to buy whole NFT(s) per say. Fungible tokens representing NFT indexes and fractionalized NFT(s) are the ones that have gained traction till now but more flavours of financial products are coming. There is an argument to be made that in the long-term, very few NFTs will dominate most of the trading volume as not all of the long tail of NFTs can be financialized.

Distribution model for a collection of NFTs like cryptopunks that can utilize NFTx’s vault.

NFT financialization products will open up a plethora of use-cases that we can’t even imagine of as of now. Such products will bring the innovation happening in the DeFi world to NFTs. These would be community owned smart contract based protocols similar to DeFi protocols like Uniswap. Overtime, the trading volume and the market value of the most used protocols would go to levels of current community owned DeFi protocols as NFTs expand to represent assets in both the digital and physical world.

DM me on my twitter if you want to chat or work on NFT Financialization projects.

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