NFTs are surviving the crypto meltdown – just don’t put your house on it yet – Nasdaq | Omd Cialis

“After Andy Warhol died, his work was worth nothing,” says Les Borsai, co-founder of Wave Financial, a crypto asset manager with more than $1 billion in assets, citing the American painter as an example of how patient Art collectors can make money time. Borsai is actively looking for acquisitions in the non-fungible token (NFT) space following the recent implosion of the asset class.

“I haven’t sold a single NFT,” he continues. “I’m a collector and as a collector the race isn’t over in a few months or a few years.”

He insists that the market for one-of-a-kind physical or digital items such as collectible artworks, metaverse (or virtual reality) properties continues to hold promise for discerning investors willing to take the time to curate the best investments. Despite the collapse of the Bored Ape Yacht Club’s collection of monkey JPGs wrapped in NFTs, Borsai’s monkeys #4206 and #3281 still command a hefty price tag, unlike others seen alongside bitcoins in this year’s tech sell-off have fallen.

“Rare Monkeys”

“I’ve taken the time to find the rarest ones [apes] at the cheapest price,” Borsai adds, claiming that he has also made “hundreds of thousands” of airdrops attached to the items.

Of course, not everyone has done well in this niche corner of the crypto wild west.

The NFT market — which made billions about a year ago when speculators traded in artworks, sports cards and game pieces related to the metaverse — is now worth a fraction of what it was when artist Beeple created his Everydays : The First 5000 Days sold a whopping $69 million in March 2021.

Sales on top marketplace OpenSea (which just announced major layoffs) are down about 50% over the past few months, with the average price of listed NFTs down almost 40%, according to DappRadar. Meanwhile, according to Coinmarketcap.com, the value of the cryptocurrency market has halved to nearly $1.2 trillion in 2022 as Bitcoin and Ethereum, the currency that powers NFTs, took a major hit.

And the pain could linger for some time, at least according to a recent MLIV Pulse poll of 950 investors, in which 60% believe Bitcoin is more likely to fall to $10,000 than $30,000. Still, Borsai continues to see value.

gaming promises

Like others who see a bright future in play-to-earn gaming, he likes Gala Games, which allows musicians like Snoop Dogg (a big NFT collector himself) and Ice Cube to publish their works as NFTs on the decentralized blockchain to sell. RTFKT or Artifact, a design community behind CloneX (a collection of 20,000 algorithmically generated metaverse NFT characters), is also a favorite. Artifact recently teamed up with Nike (NKE) to create a rare digital sneaker that’s changing hands for $130,000 and features a colorway by famed artist Takashi Murakami.

“Platforms are connected across the entire value chain,” continues Borsai. “If you look at the industries of the future, they will affect media, gaming, film, sports and fashion in the same way that iPhone apps and mobile apps have touched every industry.”

Joe Samo, founder of crypto law firm Samo Law Group, says it will take a while for NFTs to recover as only those that bring true value are likely to survive.

Cool hype

“They will stay, but I don’t think they will have the same fanfare,” he says. However, he sees promise in the intellectual rights protection that NFTs bestow as digital certificates of authenticity backed by blockchain technology.

“I can prove that I have an original work of art with an NFT, no matter how much it moves,” he says. “This is a unique technological value.”

Some gaming NFTs that allow users to own player avatars or skins and benefit from their future use will also be successful. “People who are into gaming are really into gaming,” he says. “My children spend a lot of time and money playing games. They love the space and will do anything for it.”

Despite its potential, Axie Infinity, the biggest play-to-earn project to break into the crypto sphere in recent times, has this year with its AXS coin now trading at $18 after hitting a one in January peaked at nearly $100, raising the dust.

market recovery?

Ed Moya, a senior analyst at forex trader Oanda, says the space could regain its fortunes once (and if) the crypto market stabilizes and global recession fears ease. A tech rally in the second half of the year, which hinges on the prospect of the Fed easing rate hikes to curb inflation, could also help attract cash back into the market. But this time, investors will likely act more carefully to choose the right projects.

Moya agrees that saves will grow a lot, with lots of money and innovation pouring into the space. “The future of gaming could be tied to NFTs,” he says. “You’re going to see a lot of effort to capitalize on that.”

According to Moya, NFT’s “never-ending stream of revenue” will also keep the asset class afloat. “Every time you sell an NFT, the original creator gets back a portion of their original investment,” he says. “These types of potential gains are going to amplify, which is why developers want to make NFT-based games.”

One such project is Grand Theft Auto, a premier action-adventure game whose sixth edition is expected to allow players to use Bitcoin to earn rewards and trade.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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