NFTs or non-fungible tokens have revolutionised the monetisation of content, prompting celebrities and even sports teams to partake in this cryptic fad.
Much like rare art, NFTs are innately valuable due to their constrained supply, however, many projects are attracting buyers by building entire ecosystems that reward long-term holders. This increases the utility, making NFTs a must have for many.
So, are you too late? Based on news headlines it may seem that the opportunity is long gone but the numbers tell a vastly different story. According to recent reports, there are more than 15.7 crore unique ethereum wallets, which can be used to hold NFTs, with the number of active trading accounts sitting close to 2 lakh on primary NFT platforms.
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This means that a 5-time rise in demand could send prices skyrocketing given supply constraints.
However, this possibility of massive profit makes regulation a necessity as potential investors would require guidance on taxation, among other guidelines. Reports say that the Indian government is attempting to classify NFTs and could bring them under the umbrella of crypto bill. So, what could this mean for the asset class and should you look at it?
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Shivam Thakral, CEO of BuyUcoin; Toshendra Sharma, CEO of NFTically, and Lennix Lai, director-financial markets at OKEx, discussed this further.
“Recently we have seen a lot of celebrities, enterprises as well as the production houses are looking to monetise the digital assets, which they have accumulated over the last few decades. NFTs is a way for them to monetise them and the way they are jumping in and the way the Indian buyers are rushing towards the NFTs, we can see that the numbers are surely going to go up," said Sharma.
"So obviously this is a very early stage because the Indian market is where the US market was around three-four years back in terms of NFTs. But the way we are growing and the way we are grabbing the attention in the market, I am very sure that these numbers are going to pick up very fast.”
“NFTs is helping artists – music artists or filmstars who are dependent on producers, directors to rollout their work but what NFT as a technology or as a concept has done is it has enabled these small artists, these people to eliminate the middle man and sell their art work in the market directly. So NFTs is making things more accessible to normal,” Thakral said.
“The NFTs will grow bigger and bigger. I am not surprising that the number will be double next year and there have been a lot more interesting NFTs available. I am sure that some NFTs will be officialised,” said Lai.
For the entire show, watch the accompanying video.