The Capital
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The Capital

Where Will NFT Market go in 2022?

Interview with Elena Obukhova

What makes an NFT valuable?

First of all, if we talk about the value of NFT’s, I would approach it from 2 sides: financial and technological. NFTs can be financially valuable due to the rarity, authenticity, and origin of their underlying assets/products/contracts. For example, it can be digital art that was created by a famous artist, a soundtrack recorded by a celebrity, or it can be a luxury real estate. There are multiple reasons why businesses and famous artists are choosing NFT technology, including provenance, transparency, and liquidity. Digital art existed before NFTs. Music was recorded, royalties were done through “paper” agreements, and real estate was also sold without using blockchain technology. NFT technology isn’t re-inventing these industries. It makes them efficient through better transactions, more transparency, and the prevention of counterfeiting. NFTs help to eliminate the middle man and make markets more accessible to people.

Are NFTs the future of art and collectibles?

They definitely are the present. I always like to look at NFTs from a wider angle. As mentioned in the previous question, NFTs are helping to solve multiple problems related to provenance, counterfeiting, transacting, and liquidity. I believe the market is still establishing. The majority of people did learn about NFTs through digital art and collectibles. However, we’re starting to shift to the next stage, where SMEs and large companies start exploring this technology for completely different use cases.

Can NFTs be used as an investment?

When most people think of NFTs, they think about all the JPEGs and GIFs being sold for a fortune. However, as I already briefly mentioned, NFT is a data unit that can have investment value based on the underlying asset (if it has one). At the same time, it might only have a technological value if we, for example, talk about using NFTs within the supply chain for traceability of certain goods or shipments.

How do you ensure that a physical asset and the associated NFT remain connected?

That’s a good one! In some cases, there’s no actual way to establish a connection between a physical asset and an NFT.

Minting NFTs can be expensive, how can small digital artists make NFTs more of an option for themselves?

There are multiple Blockchains. For example, such major chains as Polygon, Avalanche, and Algorand all have very low (close to 0) gas fees. I would recommend doing more research on the platform that fits their needs and supporting the blockchain that can make this process more accessible for them.

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Elena Obukhova

Entrepreneur & Business Strategist, Founder & CEO at FAS | Fintech Advisory Services