We are on the brink of the NFT revolution. Like any other space, the non-fungible asset class also attracted a fair share of critics. The Co-founder and CTO of Casa Jameson Lopp said that he sees no value in these non-fungible tokens.
Lopp’s original tweet read,
“I didn’t see the value of NFT art 5 years ago and I still don’t today. But I’m just one person.”
However, he did go on to clarify that ownership of scarce items that can be used in a variety of virtual worlds makes sense to him.
A similar sentiment was shared by Bitcoin proponent and podcast host John Carvalho, who commented,
“Part of the reason for high interest in art NFTs is the market of people wanting to sell worthless things at scale is huge, and pairs very nicely with the shitcoiner environment of VCs priming their projects with liquidity”
He went on to claim that “it’s a trap where issuers of NFT can use their own money to buy their own listings.” Carvalho also added,
“This creates an appearance of real hype and demand. It’s a trap.
What exactly is NFT?
A quick primer for the uninitiated. A non-fungible token is essentially a special type of cryptographic token which represents something unique and is non-fungible in nature. It can be used to create verifiable digital scarcity.
This marketplace which includes artworks and other digital collectibles are the game-changing applications that will one day lead to digital assets overtaking the physical collectibles market.
Anything can be sold using NFT, anything our imagination can come up with.
Several investors has signaled their growing interest in this corner of the crypto economy. The entry of big names such as Linkin Park’s Mike Shinoda, Lil Yachty, Carl Cox, and Soulja Boy, which has only added fuel to an already red-hot rally.
Despite the massive success of this space, not everyone is optimistic about what the NFT market has to offer.
For instance, Litecoin [LTC] creator Charlie Lee, believes that non-fungible tokens are unsustainable unlike “real art”.
He argued that NFTs are non-finite tokens and there is zero cost to create an unlimited number of tokens.
Contrastingly, real-world art needs effort and time to create much like the fact that great artist can only create thousands of pieces of art in his/her lifetime. Is this limitation that creates scarcity, which helps keep the value high.