Binance’s head of NFTs, Helen Hai, believes that NFTs are around to stay but haven’t reached their full potential.
Although NFT searches on Google were down 74% at the end of May and sales figures for the Bored Ape Yacht Club collection have fallen since January following the collapse of Terra, an executive believes that we have not yet scratched the surface of potential NFT. Binance’s head of NFTs told Yahoo Finance that she hasn’t bought many NFTs because she considers their true value has yet to emerge. “I still think the real value creation of NFT is not there yet,” said Helen Hai, adding that the way to move NFT forward is to bridge the gap between user and creator. “How can we really connect everything? ” she says.
NFTs are digital certificates of authenticity “minted” on the blockchain that immutably attribute digital or physical item ownership. In most cases, an NFT is not an actual digital image of a cartoon ape or an 8-bit cartoon character. However, it contains a URL that links to a server from which the file can be downloaded.
Are NFTs subject to systemic risks?
Despite celebrity endorsements and FOMO catapulting NFTs into the spotlight in 2021, the first quarter of 2022 saw NFT sales drop nearly 50%. The dip comes amid a tough time for the broader crypto market, with the crash of TerraUSD, the ensuing bitcoin selloff and the unpegging of Tether, the world’s largest stablecoin, to $0.95. . Hai says people are trying to figure out if NFTs carry the same risk as the broader crypto market, adding that the line between risk and systemic risk is very fine. ” It’s the panic. People wonder, “Is this really a single risk or will there be systemic risk?” »
Invest in NFTs with long-term utility
With threats of recession and the Russian invasion of Ukraine putting further pressure on people’s pockets, Hai stresses the importance of judging the value of any NFT project, as all projects are not created equal. “People need to differentiate and appreciate. It’s like going to buy art. This is a very judgmental thing.” You shouldn’t invest in crypto simply because a famous person creates much hype around a specific project and wastes your money, Hai says. Instead, you should invest in an NFT with long-term utility.
“That’s how you really create a sustainable future for NFTs,” Hai said.
