FTX CEO, Sam Bankman-Fried has highlighted the rapid adoption of non-fungible tokens (NFTs) as a potential cause for investors to take caution, he also stated that investors need to be educated so as not to be exposed to the volatile market dynamics.
In a recent interview with CNBC’s Street Signs Asia, Sam Bankman-Fried voiced cautious optimism about the rate of growth of nonfungible tokens (NFTs) during the previous year, warning investors that if they are not adequately educated in the field, they may become exposed to volatile market dynamics.
The 29-year-old crypto entrepreneur and founder of Alameda Research and FTX, a crypto derivatives exchange, said that while conversions have occurred with his own clients regarding their intent to purchase digital assets, those same clients can become hesitant when questioned about the true utility of their new asset.
“It’s nearly mainstreaming quicker than the mainstream realizes what they’re adopting,” Bankman-Fried asserted.
“It might lead to really rapid and massive adoption,” he continued. It might also leave a sour taste in people’s mouth if there’s a crash and no one knows what caused it.”
It’s only logical that the NFT market attitude remains relatively unquestioned in such a fledgling space. In contrast to the bitcoin market, which has gone through a number of optimistic and negative cycles, NFTs haven’t yet been through the ringer, so to speak.
For the time being, NFT sales are still breaking all-time highs, resulting in increased conscious knowledge and cultural adoption in the mainstream market. The market may be able to maintain such momentum in the long run if decentralized finance grows at the same time.
Visa adopts NFTs
Visa, the world’s largest payments processor, has purchased a renowned CryptoPunk avatar for just under 150 Ether (ETH), or $150,000.
In addition, Jordan Fried, a fellow crypto entrepreneur, recently announced the upcoming launch of NFT.com, a marketplace venture funded by seasoned investor and Shark Tank member Kevin O’ Leary.
“Certainly people have made money selling them,” Bankman-Fried closed the conversation. If you can figure out what makes them desirable, that’s one way to break into the game.”
