• FTX’s Bankman-Fried wary of nascent NFT field

  • Sam Bankman-Fried expressed optimistic caution about the rate of growth around non-fungible tokens (NFTs) over the past year and warned investors that they could become vulnerable to volatile market dynamics if they are improperly educated in this space.

    The 29-year-old cryptocurrency entrepreneur and founder of trading firm Alameda Research and cryptocurrency derivatives exchange FTX hinted that his own clients have switched in their intentions to buy digital assets, but also become hesitant when those clients question the true utility of their new assets.

    “It’s almost faster than the mainstream population understands what they’re adopting, which is a strange phenomenon,” according to Bankman-Fried.

    He continues, “It could lead to incredibly rapid and huge adoption. Frankly, it could also lead to a sour taste in people’s mouths if there’s a meltdown and no one quite figures out what it is.”

    In such a nascent space, NFT’s market ethos is naturally relatively unchallenged. Compared to the cryptocurrency market, which has seen numerous bullish and bearish cycles, NFT has yet to experience a major storm, and can only be described as having experienced good times.

    At least for now, NFT sales continue to break all-time highs, leading to more awareness and cultural adoption in the mainstream. Perhaps with the simultaneous growth of decentralized finance, the market can maintain this momentum for the long term.

    Just yesterday, payment processing giant Visa purchased an iconic CryptoPunk avatar for just under 150 ethereum (ETH), the equivalent of $150,000.

    Meanwhile, fellow cryptocurrency entrepreneur Jordan Fried recently announced the future launch of NFT.com, a marketplace initiative reportedly backed by seasoned investor and Shark Tank panelist Kevin O’Reilly.

    Bankman-Fried suggested, “Of course, people are already making money by selling them. This would be a way to get into the game, if you can understand what makes them popular.”

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