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Cryptographic investors are looking at the NFT bubble, but touting the power of the underlying technology

Visitors will see an immersive art installation entitled “Machine Hallucinations Space: Metaverse” by Refik Anadol at the Digital Art Fair Asia on October 3, 2021 in Hong Kong.

Ramik | Bloomberg | Getty Images

Miami Beach, Florida – Cryptocurrency investors are betting that the underlying blockchain technology will stay here, even if the NFT is a moment.

Cryptographic enthusiasts and venture capitalists gathered this week in Miami Beach, Florida, one of the world’s leading art events. For the first time, Art Basel Miami featured multiple NFT exhibits. However, the city also hosted more than 200 other events focusing on the technology behind these digital collections.

Musicians, artists and celebrities are keen to launch NFT, a non-fungible token, a unique digital asset that has been verified and stored on the blockchain. This is a way to take ownership of content that has historically been easy to duplicate online.

According to JPMorgan’s recent estimates, the new asset class earns about $ 2 billion a month from $ 400 million in January. Analysis by DappRadar shows that NFT volumes have surged 38,000% year-on-year. $ 10.7 billion In the third quarter.

“There’s certainly a lot of hype,” said Mike Shinoda, musician and co-founder of the band Linkin Park, which launched the new NFT mixtape this week. “Most people believe that a version of the bubble is happening, but most of us in space are new to staying in a version of itself, whether the bubble goes up or down. I think that’s the case. “

Gateway to crypto

Tristan Yver, chief strategy officer for FTXUS based in Miami, said hype can benefit every corner of the crypto industry, even if parts are overvalued. According to Yver, digital art is not an intimidating way to introduce blockchain technology to people.

“We all have a basic understanding of art. Not all of us have a basic understanding of cryptocurrencies and blockchain. That’s the next step towards mass adoption.” Yver told CNBC. “NFTs are the first time many people have created a connection between cryptocurrencies and blockchains.”

Blockchain technology was synonymous with Bitcoin. However, in the last few years, various other blockchains have emerged to support financial applications, video games, and more.

The main attraction for building on a blockchain, also known as a distributed ledger, is that they are “distributed”. There is no central authority to control these networks, and there is no single point of failure. Proponents say it’s more transparent. Some tech investors see this as the next wave of the Internet and call it “Web 3.0.”

Adam Judd, Head of Cryptocurrencies at LionTree, said that some specific NFT projects feel “slightly hilarious.” But he still sees room for growth in the category and new use cases for identity, community incentives, startup funding, entertainment and fashion. He points out the cultural phenomenon of the boring ape yacht club, Beeple’s record $ 69 million NFT sale We are promoting “great interest” in Web3.0.

“One of the biggest opportunities today is an interface and experience that is easy for everyday people to use, making NFTs friendly, valuable, and economical,” says Judd. “If we can buy NFTs as comfortably as everyday people buy coffee, the rest of Web3 will benefit.”

Packy McCormick, founder of Not Boring Capital, was also in Miami this week, saying that NFT events are an important catalyst for attracting like-minded people in the same room.But the conversation was more flowing Decentralized autonomous organization, Or DAOs, new types of governance systems, and new use cases for other blockchains.

“When people enter the NFT, they want to learn about everything else that’s happening on the blockchain. It’s impossible not to get down the rabbit hole,” McCormick said. “A lot of people will come to guess, but important projects will stay strong and quality will prevail over time.”

Watch: Art Basel 2021 begins as an NFT and crypto enthusiasts land in Miami

Cryptographic investors are looking at the NFT bubble, but touting the power of the underlying technology Cryptographic investors are looking at the NFT bubble, but touting the power of the underlying technology

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