• Bitcoin bull Mike Novogratz says NFT represents a huge shift in culture

  • Mike Novogratz, CEO of Galaxy Digital, says the rise in popularity of non-fungible tokens (NFTs) over the past few months represents a huge shift in culture.

    When asked if Visa’s latest CryptoPunk purchase means anything to the industry or is purely symbolic, Novogratz explained that the rapid price movement seen in many popular NFTs is the result of people getting too excited when new market trends first start.

    However, he believes that this hype will not have much of an impact on the legitimacy of the industry.

    NFTs are tokens that are used to represent ownership of a variety of unique items, from art and collectibles to music and real estate. These tokens are secured and certified by the blockchain platform they are issued on, and there can only be one owner at a time, so they are rare and valuable.

    Novogratz says NFTs are a legitimate industry

    Over the past few months, NFTs have seen a surge in popularity that only seems to rival the ICO boom the industry saw in 2017.Global financial giants like Visa entered the space by buying NFTs, further fueling the flames surrounding the new asset class, prompting many to ask when the NFT bubble will burst.

    However, Novogratz believes that this is the “normal excitement” seen at the start of any new market trend, and that NFTs are here to stay. He uses the example of The Fidenza #313, an NFT by artist Tyler Hobbs, which recently sold for 1,000 ETH, to illustrate the massive price jump NFTs have experienced. This piece of art, now worth over $3.3 million, could have been bought for less than $4,000 a few months ago.

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