Is the NFT bubble set to burst any time soon?
With NFTs completely transforming the way ownership and rights are exchanged, American entrepreneur, Mark Cuban is busy spreading the word about the new fad.
Highlighting the same, in a recent interview, he said,
“Collectors get to collect what collectors want to collect. That’s what I’d say.”
Demystifying and refuting the ‘bubble’ connotation attributed to NFTs, Cuban highlighted how the space subject itself to transition. He was quick to point out how the deficit supply of these collectibles during the initial couple of months of 2021 was conveniently replaced with surplus supply now.
Ikigai Asset Management’s Travis Kling recently took Twitter to disapprove the bubble myth too. He outrightly questioned,
“The aggregate value of NFT platform tokens is worth 2x more than Squarespace. Is that a bubble?”
At the time of writing, the NFT market capitalization was over $29 billion with a total trading volume of $3.36 billion in the last 24 hours.
Shedding light on whether or not NFTs could potentially bring new entrants into the crypto space, Cuban said,
“I see NFTs brining interest to crypto, but I think the fractionalization and securitization of NFTs is way overblown, except for a few NFTs that are classic.”
Cuban also addressed the issue of environmental damage the crypto sector is accused of. He said,
“We want to do the right thing for the economy or for the environment and there are issues that need to be addressed. “
He further highlighted that miners were parting ways with old-school energy and have started adapting themselves to clean energy. Cuban did not hesitate to brush off the claim that NFTs harm the environment.
Underlining the beauty of digital collectibles, Cuban concluded,
“It’s chill. It’s easy to buy, it’s easy to sell, it’s easy to hold, it’s easy to look at on your phone… We value things that are digital. It doesn’t have to be only physical any longer.”
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