Vignesh Sundaresan, known in the cryptocurrency community as MetaKovan, made headlines in March for his record purchase of Beeple’s “Everydays: The First 5000 Days” NFT for more than $ 69 million.
As the founder of the Metapurse NFT project and a huge expenditure in space, you would guess that he would be completely positive about NFTs. But Sundaresan warns that those who want to make a profit run a big risk, ‘he told Bloomberg.
NFTs are “not primarily an investment … It’s even crazier than investing in crypto,” he said.
NFTs, or non-flammable characters, are unique digital assets, including JPEGs and video clips, represented by code recorded on the blockchain, a decentralized digital ledger that documents transactions. Each NFT can be bought and sold, just like a physical asset, but the blockchain makes it possible to track ownership and validity.
While the market for NFTs is booming this year, business has recently taken a turn. The sales volume of the tokens has apparently decreased, with a decrease in prices. (Although not everyone believes that NFTs are a bubble.)
Sundaresan is very supportive of NFTs, but: “I do not think NFTs will forever hold the same kind of hype about valuable items,” he said.
“The market will be divided. There will be very few valuable items and an infinite number of very low valuable items.”
Similarly, Mike Winkelmann, the artist known as Beeple, compared the NFT market to the dotcom bubble. Just as some companies, such as Amazon, survived the eventual bust, and others did not, Winkelmann predicts that parts of the NFT market will thrive while others wither.
“I’m very, very positive about the long-term technology and space,” Winkelmann recently told CNBC Make It. “I just think people should be careful now, because there [was] a rush and it’s so new. This is quite speculative. ‘
As Bloomberg noted, when Sundaresan was unveiled as the eight-digit buyer of Beeple’s NFT, some speculated that it should increase the price of its own NFT collection. But Sundaresan denied this and told Bloomberg his motive was to “support the artist and showcase the technology.”
“The [Beeple] piece is going to get a life of its own, that’s what makes NFTs really interesting, “Sundaresan told CNBC in March.” It may not just be a work of art, but thousands of other things can become. But I will not sell it soon. ‘
Sundaresan predicted that “there will be hundreds of thousands of people from around the world who will adopt this medium, a digital indigenous medium to earn art,” he said.
“There’s going to be an economy all around.”
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