Few will argue with that that the NFT market is now overheated. According to NonFungible, between September 2021 and May 2022, NFT sales fell by 92%. Add to this the general bearish trend in the crypto industry right now and we get a rather sad picture. , which is why in the mass consciousness the technology has become associated with virtual value.
In fact, NFT technology is nothing more than a blockchain certification system that can be use to mark any asset – real and virtual, or tokenize rights. However, if you link non-fungible tokens to real assets, then there are difficulties with logistics or transfer of ownership within the traditional legal infrastructure. It is much “easier” to trade pictures and in-game assets. This was thought during the 2021 crypto bull market and… shot themselves in the foot, undermining the confidence of the general public. The situation is aggravated by the increasing cases of insider trading .
Will NFTs be able to get out of the crisis?
This will not be easy, given that the NFT abbreviation itself now causes a negative reaction in many people. reaction. It’s all because of the thirst of NFT enthusiasts to quickly earn money on pure hype, they do not want to build an infrastructure that connects NFT with the real economy. Why, sometimes even a virtual environment cannot be adequately built – we are talking about a lot of raw GameFi projects, where developers are in such a hurry to dump their Play2Earn creation on the market that they do not pay due attention to the gameplay, which is why interest in the game quickly disappears.
Few people are ready for long-term investments, almost everyone is trying to ride on the hype and get out on time. However, Ebay and Amazon emerged from the dot-com boom, cryptocurrencies were also repeatedly buried, but they always rose again. We list a number of principles that can help NFT become closer to reality, no longer relying on hype alone.
How can NFT get closer to reality?
NFT enthusiasts will have to face the harsh reality that the technology must be tied to real values if they want to reverse negative public opinion. Several approaches can be distinguished here:
The most obvious is to use NFT to label real assets such as real estate or transport. This makes it possible to simplify such procedures as rent, carsharing, barter exchange.
Another viable approach is to use NFT as a ticket to real events – concerts, lectures , tourist vouchers, etc.
Third option is to use NFT to secure copyright on designs directly related with production. Examples are molds for jewelry or 3D models of buildings on which real houses will be built, etc.
Of course, the implementation of such opportunities will require large investments, contracts with logistics and legal services, but this is currently the only way for NFT technologies to go beyond the virtual realm.