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Binance NFT CEO Helen High believes that the NFT has not yet reached its full potential, despite the decline in interest in them.
Despite the fact that by the end of May, the number of NFT searches on Google decreased by 74%, and sales figures for the Bored Ape Yacht Club collection have dropped sharply since January 2022, one of the executives believes that the potential of NFT is still not revealed.
The head of NFT Binance told Yahoo Finance that she did not buy much NFT because she believes that their real value has not yet been determined.
“I think the real value creation of NFT hasn’t really arrived yet,” Helen High said, adding that the way to move NFT forward is to bridge the gap between user and creator. – “How can we really tie it all together?”
NFTs are digital certificates of authenticity “minted” on the blockchain that invariably indicate ownership of a digital or physical commodity. In most cases, NFT is not an actual digital image of a cartoon monkey or an 8-bit cartoon character. However, the NFT contains a URL that refers to the server from which the file can be downloaded.
Are NFT exposed to systemic risks?
Despite the support of celebrities and the fact that FOMO (fear of missing something) brought NFT into the spotlight in 2021, in the first quarter of 2022, NFT sales fell by almost 50%. The decline in interest in NFT comes at a challenging time for the broader crypto market – we’ve seen the collapse of TerraUSD, the subsequent sharp selling of bitcoin, and the loss of Tether’s peg, the world’s largest stablecoin, to the U.S. dollar.
Helen High argues that people are trying to understand whether the NFT segment carries the same risks as the overall crypto market, and adds that the line between single risk and systemic risk is very thin.
Invest in NFT with long-term utility
At a time when the conflict in Ukraine and the possibility of a new global crisis are putting additional pressure on people’s pockets, Helen High emphasizes how important it is to understand the value of any NFT project, since projects are not created in the same way.
“People need to discern and appreciate. It’s like going buy artwork. It’s a very subjective thing.”
According to Helen High, people should not invest in cryptocurrency simply because a famous person creates a lot of hype around a particular project. Instead, users interested in NFT should invest in non-fungible tokens with long-term utility.
“That’s how you’re actually creating a sustainable future for the NFT,” High believes.
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