As the crypto market sells off after last year’s go-go years — taking NFTs down with it — one industry insider believes the best is yet to come for non-fungible tokens.
“If you ask me, did I really buy a lot of [these]? No, I didn’t,” Helen Hai, head of Binance’s NFT marketplace, told Yahoo Finance. “Because I still think the real value creation of the NFT is not really here yet.”
Noting that the industry is in the early stages of this technology and its applications, Hai said: “We need to understand more about the user’s perspective, and also the creator’s perspective. How can we actually connect everything together?”
“Blockchain and NFTs definitely have long term value,” Hai continued. “And in my personal opinion, NFTs are definitely going to go up. That’s the bigger direction.”
NFT sales volumes plunged nearly 50% in the first quarter this year with resale profit volume down 3%, according to a quarterly report by NonFungible, which tracks NFTs. The slowdown in the volume of buyers and sellers comes as the collectible market has become saturated with NFTs. As of February, 1.2 million NFTs have been minted, according to blockchain analytics company Nansen’s quarterly report.
Near term, Hai expects more volatility, especially in the midst of a stock market sell-off and what she calls a geopolitical recession given the Russian-Ukraine standoff.
“Temporarily, I think there will be turbulence,” Hai said. “But it’s not unlike the early stages of the internet where at this infant stage this kind of volatility always happens.”
The recent turmoil in crypto markets is spilling over to NFTs, Hai said.
“There’s panic. People are wondering, ‘is this actually a single risk, or is there going to be a systemic risk?’” said Hai. “I think the system needs to be improved, but it’s clearly not a collapse of the system.”
Hai said investors need time to understand the fine line between a single risk and a systemic risk and the related impact on NFTs. Not all content is valuable, Hai said, and investors need to learn to differentiate.
“Do all contents have value on the platform, the answer is no. As well, is it that everything has no value? No,” she said. “But people need to differentiate and appreciate. It’s like going to buy art. This is a very judgmental thing.”
Hai said finding NFTs that offer value starts with education. Investing in an NFT just because it’s offered by someone famous isn’t the answer, according to Hai.
“It doesn’t work like that,” she said. “I think we need to really understand what’s the true value? Is it just a picture? Is it just about the artist’s name? I think there needs to be more than that.”
Binance offers education with 800 courses, including courses on NFTs that help people to appreciate how to differentiate between different kinds of NFT’s.
“The best way for the industry to grow is actually educating the users, for them to understand the risk,” Hai added. “With all the price volatility now, people need to really rethink where they put their money.”
Binance wants to shape the NFT industry with its technology and work to bring more long-term valuable content into the crypto and NFT industry. The crypto exchange is continuously looking to find new ways people can use NFTs, including initial game offerings.
“That’s actually how you create a sustainable future for NFTs,” Hai said. “Increased utility creates long-term value.”
Jennifer Schonberger covers cryptocurrencies and policy for Yahoo Finance. Follow her at @Jenniferisms.
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube.
As health authorities in Europe and elsewhere roll out vaccines and drugs to stamp out the biggest monkeypox outbreak beyond Africa, some doctors acknowledge an ugly reality: The resources to slow the disease's spread have long been available, just not to the Africans who have dealt with it for decades. Countries including Britain, Spain, Portugal, Italy, Switzerland, the United States, Israel and Australia have reported more than 250 monkeypox cases, many apparently tied to sexual activity at two recent raves in Europe. Meanwhile, the African continent has reported more than five times as many cases this year.
‘Never seen a bigger flop in my life than Liam Payne’ one person wrote on social media
The Psychedelic House of Davos, a satellite event happening in conjunction with the World Economic Forum, was a ‘genius strategy’ to build credibility, say experts
‘I don’t agree with any of his actions,’ singer said of his former bandmate
(Bloomberg) — Danes head to polls Wednesday to vote on joining the European Union’s defense pact as the country is pushed closer to the bloc by Russia’s war against Ukraine.Most Read from BloombergReady to Buy a House? Just Wait a Few WeeksSoros’s Money Manager Warns Recession ‘Inevitable’ But Market Timing Is OffGiant Deep Ocean Turbine Trial Offers Hope of Endless Green PowerChinese Banks Overflow With Cash That Nobody Wants to BorrowBiden Says US Will Provide Ukraine Advanced Rocket SystemsM
A special extended bank holiday weekend will mark the Queen’s 70 years on the throne
Her Majesty is the longest-reigning monarch in British history after acceding to the throne 70 years ago
In Britain, there are several traditional elements to a royal anniversary: pageants, street parties, the Sex Pistols. Queen Elizabeth II and the Pistols have been linked since the punk pioneers released the song “God Save the Queen” during the 1977 Silver Jubilee that marked the monarch's 25 years on the throne. The anti-authoritarian anthem — not to be confused with the actual British national anthem of the same name — has been re-released for Elizabeth's Platinum Jubilee, or 70 years as queen.
The weekend to celebrate the Queen’s 70 years on the throne is almost here
Her Majesty has marked a number of significant milestones throughout her 70-year reign
The monarch will mark 70 years on the throne with a four-day bank holiday weekend in June
The Queen’s official coronation took place in 1953
More than 2,000 beacons will be lit to honour the Queen’s 70-year reign
(Bloomberg) — The US will provide Ukraine with advanced rocket systems and other weaponry to help it fight invading forces, President Joe Biden said in a New York Times essay, adding he’s not seeking a war between NATO and Russia.Most Read from BloombergReady to Buy a House? Just Wait a Few WeeksSoros’s Money Manager Warns Recession ‘Inevitable’ But Market Timing Is OffGiant Deep Ocean Turbine Trial Offers Hope of Endless Green PowerChinese Banks Overflow With Cash That Nobody Wants to BorrowBi
No one knows that better than Queen Elizabeth II, who's showing no signs of stepping aside after 70 years on the throne. The subtle transition illustrates the challenges confronting the royal family as the 96-year-old queen remains on the throne but Charles becomes the ever more public face of the monarchy. As Britain celebrates the queen’s Platinum Jubilee this week, the royals are working to cement the position of a sometimes misunderstood heir and demonstrate that the House of Windsor will live on.
While her tumultuous relationship with Johnny Depp has made headlines, the 36-year-old is an actor, activist, and model in her own right
Celebrations for the monarch’s historic milestone begin on Thursday 2 June
‘He’s one sick comedian,’ comedy star’s father said
Actor has claimed Heard’s actions have damaged his career
Heard is said to have lost $50m (£38.2m) in earnings as a result of the scandal surrounding Depp dispute


Write A Comment