Despite the ongoing hype surrounding NFT will gradually deflate, the concept is there to stay, per the founder and Head of MyEtherWallet, Kosala Hemachandra.
Specifically, Non Fungible tokens (NFTs) have reportedly managed to accumulate significant interest across the crypto sphere, throughout the past months, with some tokens selling for millions of dollars.
“NFT is currently a hot topic, but I’m sure the hype around it will soon die down. Similarly, ERC-20-based tokens were a hot topic in 2017 because of ICOs, now it’s not news to anyone, as people use those tokens daily.” Hemachandra particularly remarked.
Every non-fungible token reportedly has provable unique features, and hence distinct value-wise. They are not interchangeable one-for-one with a different asset of the similar type, since every NFT comes with verifiably distinct characteristics.
Said differences will have a deciding impact on the rarity level of the tokens (and from time to time their utility across an ecosystem), despite the superficial similarity they have initially.
“If someone is really interested in an NFT sold in 2021, I’m sure that person will pay any amount to buy it in 2030. That’s why we cannot say that 2017 cryptokitties aren’t valuable now. I’m pretty sure even now some people would love to get hold of some of those unique items for a higher price if the current owner is willing to sell.” Hemachandra reportedly remarked.
CryptoKitties – the first officially finalized NFT implementation – has reportedly managed to capture popularity in the crypto sector 4 years ago.
“NFTs feel like they’re going to play out a lot like ICOs — 6-9 months of increasingly high-value and nauseatingly cynical sales, followed by a multi-year crash,” Nadav Hollander, co-founder of Dharma, reportedly stated regarding the resemblances between NFTs and ICOs.