Non-fungible tokens (NFTs) are gaining traction quickly, according to Sam Bankman-Fried, the founder and CEO of a US-based cryptocurrency exchange. However, most investors are unfamiliar with the NFT market.
NFTs are not well understood by mainstream investors.
Bankman-Fried indicated that mainstream adoption of NFTs is developing at a quick rate in an interview with CNBC’s Street Signs Asia on Tuesday (August 24, 2021). Everyone seemed to be looking for a way into the sector, according to the FTX founder.
However, the billionaire pointed out that while individuals wanted to be a part of the NFT market, they didn’t know what they were getting into. According to Bankman-Fried:
“It’s almost mainstreaming quicker than the mainstream realizes what they’re accepting, which is a strange phenomenon.”
The FTX CEO went on to claim that he has spoken with clients that were interested in NFTs. However, when asked what they intended to do with them after that, these investors had no notion.
Furthermore, Bankman-Fried stated that people have gained money by purchasing and selling these NFTs, adding, “That would be one way to get into the game if you can comprehend what it is that makes them appealing.”
Indeed, NFTs have attracted interest from a variety of industries, including sports, music, and entertainment, as well as corporate behemoths. According to ULTCOIN365, global payments giant Visa just purchased a CryptoPunk NFT for $150,000.
To commemorate the 2021-22 season, the German football league Bundesliga launched an NFT collection. Coca-Cola collaborated with OpenSea and Dectraland to launch and auction a four-piece collection of NFT memorabilia to commemorate World Friendship Day.
Meanwhile, Bankman-Fried stated that there are several varieties of NFTs, with jpegs being the most common. He also stated that the NFT business is still in its infancy and development, and that there are questions about its long-term trajectory.
The FTX CEO backed up his claim by saying:
“It has the potential to result in extraordinarily rapid and massive adoption. It might also leave a sour taste in people’s mouth if there’s a crash and no one knows what caused it.”