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Cryptocurrency

NFT Market to See Even Bigger Growth in 2022 According to Animoca’s Yat Siu

Horizonstocks

As the cryptocurrency space continues to evolve, non-fungible tokens (NFTs) have taken center stage. While their popularity has waned in recent times, Animoca Brands chairman Yat Siu is optimistic about their future prospects. In an interview at the Bitcoin MENA event in Abu Dhabi, Siu shared his thoughts on the current state of NFTs and why he believes they will make a comeback.

NFTs: A Natural Cycle of Success and Failure

Siu acknowledged that the current market landscape for NFTs is challenging. According to data tracker CryptoSlam, monthly volumes ranged from $1 billion to $5 billion in 2021 and peaked at $6 billion in January 2022. However, since then, sales volumes have declined significantly, struggling to reach even $1 billion. Additionally, some high-profile projects like Kraken’s NFT business and Nike-owned RTFKT have shut down.

Despite these setbacks, Siu remains bullish on NFTs, stating that failures are a natural part of the business cycle. "That’s true for companies, too," he said. "How many fashion brands and shoe brands or gaming companies or whatever have launched products and they haven’t worked, and then they shut down? That’s life, right?"

Siu emphasized that some projects will succeed while others will fail, which is a normal cycle in the business world. He expressed empathy for the teams behind failed projects, stating that "I don’t think we can fault them for trying."

The Role of NFTs as Status Symbols

Siu highlighted the role of NFTs as status symbols, comparing them to luxury goods that convey cultural and symbolic capital. He explained that when people make money, they often spend on reputation-based investments.

"When we’ve made money, we don’t spend it on making more money — we spend it on luxury goods," Siu said. "Nice house to live in, a car, new clothes, nice shoes. Right? These are not investments in a classical way. You can think of them as investments in your reputation."

Siu noted that when a person’s reputation improves, they gain more opportunities. He used the example of owning a Picasso as a status symbol: "If I own a Picasso, I have a reputation that’s very special." Siu believes that NFTs like Bored Apes, Pudgy Penguins, and CryptoPunks serve a similar purpose.

Why NFTs Will Make a Big Comeback

Siu’s optimism about the future of NFTs is rooted in their ability to convey cultural and symbolic capital. He believes that as people continue to make money, they will seek out unique ways to showcase their wealth and status.

"The reason why I think NFTs will come back even bigger than during 2021 and 2022 is because people are going to be looking for new ways to show off their success," Siu said. "And what’s more unique, what’s more exclusive, what’s more special than owning something that no one else has?"

Siu acknowledged the current challenges facing NFTs but remains confident in their long-term prospects. He emphasized the importance of understanding the fundamental drivers behind NFT adoption and creating a more inclusive ecosystem.

The Future of NFTs: A Bright Outlook

As the cryptocurrency space continues to evolve, NFTs are poised for a resurgence. Siu’s insights provide valuable context on the current market landscape and offer a glimpse into what the future holds for these unique digital assets.

While some projects will undoubtedly fail, others will succeed, driving innovation and pushing the boundaries of what is possible with NFTs. As Siu noted, "Some projects will work, and some will fail." However, his optimism about NFTs remains unwavering, driven by their potential to convey cultural and symbolic capital.

In conclusion, while the current market landscape for NFTs may be challenging, Animoca Brands chairman Yat Siu’s confidence in their future prospects is well-founded. As people continue to seek out unique ways to showcase their wealth and status, NFTs are poised for a comeback that will be even bigger than during 2021 and 2022.

Key Takeaways

  • NFT sales volumes have declined significantly since peaking at $6 billion in January 2022.
  • Some high-profile projects like Kraken’s NFT business and Nike-owned RTFKT have shut down.
  • Animoca Brands chairman Yat Siu remains bullish on NFTs, stating that failures are a natural part of the business cycle.
  • NFTs serve as status symbols, conveying cultural and symbolic capital.
  • The future of NFTs is bright, driven by their ability to showcase wealth and status.

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