Investor Gary Vaynerchuk believes NFT winter is coming
Famed investor and social media influencer Gary Vaynerchuk is extremely optimistic about the future of NFT, including collectibles, ticket sales, and more. However, he believes there will be a significant withdrawal.
Gary Vaynerchuk – Marketer
Exchange at the event Crypto is going mainstream Today (November 10th) Vaynerchuk predicts that a bear market awaits the upcoming NFT:
“We are entering the NFT winter because there are so many short-term greed and supply-demand issues,” Vaynerchuk said while speaking about why people buy and invest in NFTs.
The NFT acts like a title deed for a specific rare digital item, such as a watch. B. a picture, a video file or an item in the game. The NFT market exploded in early 2021, generating $ 2.5 billion in trading volume in the first half of the year. However, the boom at the beginning of the year seems to wear off in late spring and early summer, suggesting some that the NFT craze is just a fad.
Finally, the market hit new heights starting in August, with DappRadar reporting $ 10.67 billion in trading volume in the third quarter alone, a 700% increase over the second quarter.
Coupled with extensive trading activity, the recent boom has taken popular collectibles such as CryptoPunks, Bored Ape Yacht Club and Axie Infinity to new heights.
Vaynerchuk didn’t say when a pullback would happen, but did talk about its potential and similarity to the rises and falls of top stocks in the past.
“I think I’m going to have a real breakdown. Look what happened in March / April 2000 when the whole Internet craze collapsed. ”
“Yes, everything is caught in the flow of this trend because greed, financial returns, and short-term behavior have all overrated. It was removed. And it’s time to buy Amazon and eBay because they are real businesses. ”
Vaynerchuk believes that most NFT projects will depreciate significantly over time, but blue-chip projects will continue to grow and reach new heights. He listed collections like CryptoPunks and Bored Ape Yacht Club, as well as works by XCOPY that had NFT sales in excess of $ 1 million.
“I firmly believe that 90% of current NFT projects will lose value. The point is that 2% will grow a lot more … so people are being asked to be prepared to look for opportunities. ”
However, as the NFT market matures, Vaynerchuck expects the technology to be used much more broadly beyond collectibles, which is currently a major focus of the market.
“It is a confirmed, accepted and transparent smart contract. It is the “Holy Grail” for man. We are just lucky to be here when it was invented. It won’t change in the next 80 years. ”
“The NFT will last the rest of people’s lives and it will become more meaningful, not less.
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