I’ve been watching the non-fungible token (NFT) space closely over the last three months or so. And my conclusion is pretty simple. Art NFTs are here to stay — and we’re just beginning to see the potential utility for NFTs beyond artistic projects.
Art NFTs are incredibly viral. Communities form around interesting — or profitable — projects incredibly quick — faster than just about anything else I’ve ever seen. I’ve also watched some of the best crypto minds on Twitter, like Cryptopathic, make significant amounts of money on CryptoPunks, Fidenzas and other NFT projects.
The clear lack of regulation around art sales certainly helps. Art has a long history of being a relatively unregulated area and is not a “security” as far as the SEC is concerned.
Despite the current mania, I’m convinced that NFTs are going to continue to be a popular speculative asset for many years to come. The sheer number of projects hitting the market right now probably means that we’re approaching a near-term top in prices — but that’s not guaranteed. This is an incredibly bullish market for speculative assets. And NFTs might be the ultimate vehicle for speculation.
Unfortunately, I haven’t bought any NFTs yet. But I’m considering it if we get a nice dip in prices over the next few weeks. If you’re thinking about getting into the market, I strongly recommend getting on Twitter and following influential (and morally sound) people like Cryptopathic to get a solid introduction to the space. There’s a wealth of valuable crypto information available on Twitter.