Crypto Industry’s Confidence In the NFT Sector Increases Amid the FTX Collapse

By November 23, 2022NFT
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Crypto has been affecting the NFT sector even before the collapse of the crypto exchange FTX as the trading volumes had collapsed by up to 98% due to the FTX debacle. The NFT space, which was once a promising sector, appears to have been greatly impacted due to the FTX debacle. Nonetheless, an optimistic view has been shared by executives across the industry regarding the recovery of this zone.

As a huge amount of consumer funds is stuck FTX, at the point of the crypto exchange’s liquidity crisis, the consumers have attempted many methods to take out their funds. One such method takes into account purchasing the Bahamas-based non-fungible tokens. Several community participants condemned the respective method.

The reason behind this is that it evades the bankruptcy laws as well as mocks the use of non-fungible tokens in the procedure, presenting a bad image of NFTs. Nonetheless, an executive operating at Enjin (an NFT venue), Oscar Franklin Tan, is of the view that this does not count as a reasonable summary. Tan specified that while the non-fungible tokens were utilized, the rest of the objects could have additionally been utilized.

As per the executive, this was not related to the NFT technology but to that gap for Bahamas consumers. Tan is additionally optimistic regarding the existence of the world of non-fungible tokens even though the bear market and the FTX downfall are impacting the industry. He pointed out that due attention should be given to the method of how digital ownership’s acceptance is demonstrated by the non-fungible tokens.

In the words of Tan, the focus of the NFT projects should be on utility along with the construction of their communities. The CEO of Vulcan Forged (a studio of NFT games), Jamie Thomson, remarked that non-fungible tokens which have use cases in prominent markets would inevitably survive.

Executive Believes the NFT World Would Outgrow Memeification

But, he explained, this is not the case with the NFTs associated with bragging rights and speculations. In the meantime, Schultz (an NFT artist) considers that the NFT era with no use case is declining. According to him, this industry must expand beyond the “memeification.” This means that the latest projects should be built which would assist the whole space.

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