As the floor prices of popular non-tradable token (NFT) collections have fallen along with the broader cryptocurrency market, one NFT expert believes this is a good opportunity for investors within the space.
In an interview with Cointelegraph, Ahren Posthumus, CEO of NFT marketplace Momint, shared his thoughts on exciting NFT use cases, his role in contributing to climate action, and what NFT investors should focus on during duration of the current bear market.
Posthumus believes that the fractionation of larger assets may be the next big thing for NFTs. Citing the stock market as an example, the executive believes that splitting expensive assets into smaller, more affordable lots will make the assets more attractive to retail investors. “That’s what the stock market did for investing in companies, and it was extremely successful,” he said. The executive explained that:
“Perhaps the blockchain application with the greatest potential for future utility is the fractional ownership of assets, sometimes called tokenization, which the general public has never had access to before.”
Apart from this, the NFT expert also highlighted that NFTs could contribute to climate action and positively impact efforts to address environmental concerns. While NFTs are often associated with works of art, the CEO of Momint emphasized that they are digital certificates of authenticity. This makes it an optimal vehicle for carbon credits. Additionally, Posthumus explained that:
“You can launch NFT projects specifically designed to raise funds for environmental initiatives. That way, you can leverage the hype of NFTs to generate funds and awareness for environmental causes.”
When asked if it’s a good time to buy NFTs while there’s an ongoing crypto winter, the executive said “yes,” but urged investors to check the underlying value and fundamentals of the assets before investing.
Finally, as the world experiences a recession, the executive said it would be a safer bet to invest in blockchain infrastructure like Ethereum (ETH). “Some blockchain applications will emerge triumphant, but many will fade into obscurity,” Posthumus said.
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In the first half of 2022, NFT investors have spent 963,227 ETH, worth about $2.7 billion, on NFT minting on the Ethereum blockchain alone, according to a report by data firm Nansen. Other blockchains such as BNB Chain (BNB) had $107 million worth of NFT mints while Avalanche (AVAX) had $77 million.