Non-flammable tokens, or NFTs, have gained significant traction in the crypto space over the past few months, and some tokens have sold for millions of dollars. Although the current excitement about NFTs will eventually subside, the concept will survive, according to MyEtherWallet CEO and founder Kosala Hemachandra.
“NFT is currently a very important topic, but I’m sure the hype about it will diminish soon,” Hemachandra told Cointelegraph. “Similarly, ERC-20-based tokens were a popular topic in 2017 due to ICOs. This is not news to anyone now, because people use these tokens daily. ”
All non-fungible signs are demonstrably unique and therefore in value respectively. They cannot be exchanged one-by-one with another asset of their kind because each NFT contains striking features. These differences affect the rarity of each sign (and sometimes their usefulness within an ecosystem), even if it seems superficial at first glance.
“The value of an NFT is simply based on how much a person interested in it wants to pay,” Hemachandra said, adding:
‘If anyone is really interested in an NFT that will be sold in 2021, I’m sure the person will pay any amount to buy it in 2030. Therefore, we can not say that cryptocurrencies of 2017 are not valuable now. I’m pretty sure some people even now would very much like to get some of the unique items at a higher price if the current owner is willing to sell. ”
CryptoKitties, the first functional NFT implementation, was especially popular in the crypto space in 2017.
According to NAVAVANDER, co-founder of Dharma, the NFT scene in 2017 also looks like the initial coin offering, or ICOs. “NFTs feel they will play much like ICOs – 6-9 months of increasingly high and misleading cynical sales, followed by a multi-year crash,” he said. tweeted on February 24th.
Hemachandra sees the great potential for the NFT niche, although he questions the reason behind the current hype of the market. “Is it the ownership or the status of ownership? At the moment, the profession of NFTs is the status of its ownership,” he said, adding:
“NFTs are hot in the same way lambs are hot for bitcoin purists. I think this current version of non-fungible signs will continue to evolve in larger and broader use cases. Things like real estate and proof of tangible property ownership; everywhere; “where NFTs can help take legal action. That’s when things will start to get really interesting.”