Investor Vinyesh Sundaresan (MetaKovan), who bought the Beeple painting, believes that it will definitely not work to make money on NFT tokens.
Get ready to lose money
Vinyesh Sundaresan, who spent $ 69 million to buy Beeple, which consists of 5,000 other works by the artist, said that it would not be possible to make money on NFT, so this market would not be suitable for speculators. He calls his main motivation for buying NFT to earn money, and support for a technology that can become a breakthrough in the world of digital art.
“Anyone trying to profit from an NFT is taking a huge risk. It’s even crazier than investing in cryptocurrencies, ”he said in an interview.
This statement seemed strange to crypto enthusiasts, given that MetaKovan himself made his fortune just on cryptocurrency investing. In addition, the entrepreneur himself has made high-profile statements in support of NFT and digital art.
However, data from Nonfungible.com proves that the number of primary and secondary sales of NFT tokens has already begun to decline, after record earnings in February 2021.
The B.20 token, created by Sundaresan to provide access to “co-ownership of open art projects,” including some of Biple’s work, has dropped from $ 9.43 to $ 6.03 in the past two weeks.
As far as the long-term outlook for the NFT is concerned, Sundaresan agrees on some aspects of both bullish and bearish trends. He describes this technology as a sustainable innovation that will create a “new patronage movement” for artists and other content creators. But Sundaresan also said that the fervor around many of the most expensive NFTs is likely to fade.
NFT market prepares for bearish attack
Investor MetaKovan was not alone in taking notice of the downturn in the non-fungible token market. The bearish trend was outlined a few days ago, when prices for NFT tokens fell by 70%.
Christopher E. Wilmer, a professor at the University of Pittsburgh, said in an interview with Bloomberg:
“NFT is the same bubble as the entire cryptocurrency industry. Yes, there will be mania and excitement, but the cryptocurrency is not going anywhere. She’s with us for a long time, and NFT probably too. ”
The market was not rescued from the fall and the message of the famous brand Gucci about the possibility of creating its own NFT collection. Domestic experts are in solidarity with their American counterparts and believe that the hype for NFT tokens will soon end, but the technology itself can significantly affect the development of the cryptocurrency market, digital art, and also become one of the technologies for copyright protection.
“With the proliferation of NFT, we will be able to more easily obtain and transfer copyrights – media platforms will be able to quickly negotiate the purchase of rights to audio and video materials and legally broadcast them. This is not the limit of the capabilities of NFT technology – in the United States, the first case of tokenization of a 50% share of real estate that will be sold at an auction took place, ”commented Vladislav Utushkin, CEO of TTM Bank.