Anthony Pompliano admits he underestimated the NFT sector

Anthony Pompliano, co-founder of Morgan Creek Digital, conceded that the non-fungible token (NFT) sector “will be much bigger” than he had anticipated.

[NEW POST] I made a mistake. NFTs are going to be much bigger than I anticipated.

This not simply going to be about replacing physical art with digital art. The market expanding technology is going to eat into every industry.https://t.co/sfLUhZe3gU

— Pomp 🌪 (@APompliano) September 10, 2021

He noted a surge in NFT popularity, pointing out that in the second quarter of 2021 NFT sales reached a record high.

Pompliano also noted that in August the trading volume of the NFT marketplace OpenSea surpassed $3 billion. In his view, interest in non-fungible tokens is driven by a desire to “recreate the collectibles industry” in the digital realm. Another factor, the Morgan Creek co-founder said, is the “emergence of a new real-time status game.”

“Anyone who typically spends between $50,000 and $1 million on buying a car, a watch, a home, a boat, etc., now realises that they can spend the same money on a digital asset and display it to a larger audience online,” wrote Pompliano.

In his view, monetary and fiscal policy “has created a managed financial environment”:

“Many traditional assets, such as bonds, now yield negative real returns, which forces investors to push further and further along the risk curve. The only way to increase returns and profit is to start doing what used to be considered madness.”

Pompliano noted that the real reason behind NFT popularity is likely a combination of all these factors.

The Morgan Creek co-founder reminded that in September 2020 he predicted a six-thousand-fold increase in the market for digital art. He believes he underestimated the sector.

“The NFT industry is a technology that expands the market, which will absorb not only digital art but also collectibles, luxury goods and much, much more,” emphasised Pompliano.

He also noted the development of the industry and technology, which “increases potential market opportunities”.

For the NFT boom and other industry developments in August, read ForkLog’s monthly report:

As previously noted, Vitalik Buterin proposed moving non-fungible tokens, issued on the Ethereum blockchain to the ecosystem of second-layer solutions. In his view, this would reduce gas consumption on the main network.

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