Remember in 2017/18 the crypto market imploded with a significant draw down. Back then there was issues with too many coin forks and the leverage on crypto was heavy. With a Tether debacle the hope and dreams of crypto riches faded.
Here we are again 2021 with another crypto hype but this time it includes things like smart contracts, uniswap, and NFTs. One of the most hype up markets is the NFTs as billionaires and artists are currently making millions out of creation of digital signature cards.
Content Creation in NFTs
In 21st century many entrepreneurs are creating their own content and selling it with large profits. Low margin and a free rain to develop their content it still requires a medium to sell the content. One form of medium for entrepreneurs to be able to sell their content is through NFTs, a digital asset. Chart below from Dune Analytics shows the pace of $USD being spend on NFT assets in OpeanSea. WE are talking about 1,000% growth in sales in just a couple of months!
Mark Cuban Support for NFTs
Mark has recently disclosed he made a direct investment in cryptoslam.io.
A platform for tracking the amount of NFTs being trading and their overall ranking it is a great place to review daily how much demand and growth is there in NFTs. This will likely be similar to what coinmarketcap is to crypto as cryptoslam is to NFT.
Mark has invested and made parallels that NFT market is in its early stages similar to what internet was during his time when he achieve billionaire status.
Earlier, he (Mark) lauded NFTs as “game-changing” on the Defiant podcast. During that podcast, he also spoke of blockchain’s parallels with the early internet, where Cuban made his fortune. Additionally, he said if he were starting a business today, he would utilize blockchain technology.
Dapper Labs creator of NBA Top Shots has backing from high profile sports players such as Kevin Durant and Michael Jordan.
Mark is a heavy investor in Top Shot cards and has been very supportive of the who NFT project. His very simplistic outlook for why Top Shots would succeed is very simple. These NFTS are going to be collectibles just like gold is. The reality is just because a video on an NFT can be watch any where is not the point. The point is the video of the shot being made is on only a specific NFT that only one person or entity can own. That in itself is going to drive demand for people. Just like how hard copy cards were in demand for so many years digital NFTs will do the same.
This picture [on the trading card] is on the internet somewhere. This stat data is on the internet somewhere. I can take a picture of this and put it on the internet anywhere; [I can] put it on Twitter and 8 point whatever million of my followers would have the opportunity to see it and download it. The ability to see it on the internet is irrelevant. It’s absolutely irrelevant. It's a collectible! Period. End of story. What’s gold? People buy and sell gold. They certainly don’t have those bars in their house. Have you ever walked into someone’s house and there’s a stack of gold bars in there? No! And when you have gold jewelry, you hide it -- unless you’re a rapper or whoever and wearing it on a chain. With collectibles, it’s just things that people collect and find value in and find uniqueness in. And what makes it even more collectible is the algorithmic scarcity, meaning that the LEs (limited editions) have X number [minted], the rookies have 12,000, the first big run [of commons] had 15,000 and now they have 35,000. And you can see that in the pricing because the prices of the 35,000+ run are a lot less expensive than the shorter runs. So, the reason why it doesn’t matter if it’s physical is because it’s still a collectible.”
Conclusions
Content creators such as musicians, artists, and actors can use NFTs as a medium to sell their work similar to how Youtube and other digital content platforms have done in the past decade. Yet the growth of NFT is only in its infancy.
High net worth individuals from sports athletics to billionaires are investing their money into NFTs and advertising the asset as in a class of their own. This will be a solid support in bottom prices of NFTs if there is one. The rich willing to buy makes NFTs in the long run sustainable.
NFTs definitely have a bright future ahead and even if a dip was to come there is just too much positives with it to ignore that it would not be able to climb back up in value or just go through the moon from here.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
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