The average price of non-fungible tokens (NFTs) has fallen by 67% from the February peak, according to Nonfungible. Such a move could indicate a waning NFT mania, Bloomberg reports.
A professor at the University of Pittsburgh and co-editor of a blockchain research journal, Chris Wilmer, told the publication that NFT technology, like cryptocurrencies, will stay with humanity for a long time.
In his view, it is pointless to describe the concept as a financial bubble. Wilmer also noted the high risk of fraud during periods of great NFT interest.
“If you are an inexperienced user who does not know how to securely authenticate a work of art yourself, you can be easily deceived by a counterfeit. Many scammers will try to use this to their advantage,” the academic explained.
Earlier, the CEO of Psyops Capital called the NFT market correction a ‘soft crash’. He said that due to low liquidity in the market, sellers have difficulty assessing buyer sentiment, and therefore the price of their asset may unexpectedly end up well below the purchase price.
John Igan, head of L’Atelier BNP Paribas, noted that investing in Ethereum is safer than in NFTs. He also compared buying non-fungible tokens to casino gambling and other forms of gambling.
The artist Beeple, who sold an NFT for $69.3 million, called the market bubble and likened it to the dot-com boom of the early 2000s.
Vitalik Buterin, co-founder of Ethereum, saw the potential for non-fungible tokens to become a public good.
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