In a recent interview, the CEO of Binance expressed shock over the growth of the NFT space; and expressed some concerns over its future
Binance in the NFT Ecosystem
Binance is a household name in the world of crypto-related assets, and as one of the largest crypto marketplaces worldwide, this company is involved in a considerable amount of NFT-related activities. In a recent interview with Fortune, Changpeng “CZ” Zhao expressed shock over the growth of the NFT market in the last 15 months.
In more ways than one, CZ isn’t alone in trying to make sense of the last 15 months in the NFT space, and many people, from casuals to seasoned blockchain professionals, question the viability and future of the NFT space.
Almost every week for the last few months, we hear news about another groundbreaking NFT being bought for a ridiculous sum. Nowadays, million-dollar transactions for single NFTs barely make the news unless they’re a first or involve a celebrity. The market has witnessed so many ridiculous trades that we’ve gotten used to it.
Many people complain that the majority of NFT projects feature “uninspiring” and “ugly” artworks. Although beauty is in the eye of the beholder, there’s no denying that a lot of NFT projects leave much to be desired creatively.
One of the positives of the NFT “craze,” according to Binance’s CZ, it has allowed artists to monetize their work and interact with fans.
Is the NFT Ecosystem a bubble?
One of the most famous NFT sales to date is Everydays: The First 5,000 Days last year by Beeple, and it sold for a mind-boggling fee of $69 million. The artist behind the record-shattering sale, Beeple, has also expressed concern about whether the NFT space is a bubble primed to crash in due time.
In the past, Beeple has compared the 2021-22 NFT market to the dot-com boom of the 1990s, and CZ shared the following during a recent interview with Fortune. “But if you have one person willing to pay for it if that person suddenly changed their mind, that is no longer worth that much.”
At the end of 2020, the NFT market was valued at around $95 million, but it was valued at $25 billion a year later. Based on historical data, such a magnificent gain in a short time is almost always followed by dramatic consolidation.
Have people lost their minds?
During his now-famous interview with Fortune, Binance’s CZ questioned whether people have “lost their mind” after numerous reports of buyers paying millions of dollars for NFTs with questionable and sometimes amateurish artistic styles.
In the last few months, there have been lots of chatter about an eventual correction in the NFT space, but nobody can be sure of when, how, or if an NFT market correction will take place. If it occurs, how severe will it be? Anybody that claims to have the answers to the questions is either a speculator or a trader with ulterior motives.