Fred Ehrsam, the co-founder of Coinbase says that about ninety percent of the world’s NFTs (Non-Fungible Tokens) will not be valuable in the upcoming three to five years. This, as expected, caused quite a stir among investors and traders alike. His statement and criticism of the NFTs came at a time when investments in digital assets are the most popular they have ever been. The online investments and trading industry have an influx of new and excited people.
Fred Ehrsam is a former exchange trader at Goldman Sachs. His criticism came from the parallel that he drew between the NFTs (Non-Fungible Tokens) and the internet companies from the late 1900s. At that time, he shared his vision of a majority of the NFTs losing all their value in the next few years.
The co-founder of Coinbase made a statement surrounding cryptocurrencies and NFTs. He stated that he does not see much value in these projects which garner popularity and become best-selling digital assets overnight. He stated that till the end of time, people will try to come up with ways to increase their financial positions with minimal effort. He further commented that millions of different cryptocurrencies will be introduced to the world and many different crypto assets will be created. It will be the same phenomenon as millions of websites being created because a few of them did well when they were launched for use by the general public. The outcome of that was that most of the projects didn’t work and were flops.
Continuing the topic of digital currencies, the thirty-three-year-old investor, however, commented that people should not ignore the Shiba Inu dog-faced cryptocurrency, the Dogecoin. Dogecoin is a cryptocurrency that has taken over the cryptocurrency market like no other digital asset because of its affiliation with Elon Musk. Ehrsam said that if there is one lesson that we should take from cryptocurrencies, it is that one should not dismiss good and popular memes. These memes might later transform into more concrete progress.
Regardless of the concerns that Ehrsam shared about the probable decline of the NFTs, people have been actively investing in digital assets. Especially, since the last year or so, investments in the non-Fungible Token mania have taken over the financial market. The first-ever NFT ever created which is a digital figure in pixels, known as the CryptoPunk, was sold at an auction at Sotheby at the rate of $1.47 million.
The SketchAR app announced last week that it will allow artists from all over the world to upload, mint, and auction off their creations and artworks as NFTs (Non-Fungible Tokens).