The NFT market has become a very hot market in the 2020s, and it is a field where many investors and companies are entering. While NFTs are expanding rapidly, many people are sounding the alarm. What kind of risks does NFT art pose?
Why people say don’t touch NFT art
Many people say that NFT art is dangerous. This is for the following reasons.
there are fakes out there
A fast-growing market like NFT is also flooded with scammers. Due to such a background, fakes are on the market in NFT art. There is a risk that the NFT art work will be stolen and sold without permission. Other than that, it is said that it is dangerous to get involved easily because some people are caught by fakes and lose a lot of money.
few people earn
At the moment, a large amount of NFT art works are on the market, but the reality is that 99% of them are not profitable. Many of the works that are making money are those of celebrities, major companies, and even those who spend money on advertising. In other cases, I can see the reality that it will not be easy to purchase.
Legislation not progressing
This is a problem not only for NFT art but also for the NFT market. Despite the NFT boom, there are no legal guarantees. Even if there is an incident, it is not stipulated by law, so even if the NFT art work is stolen without permission, the creator is not protected and the world is over.
NFT is a pyramid scheme
Some have argued that the way NFTs work is a pyramid scheme. A pyramid scheme is an illegal business in which members increase membership in a pyramid fashion by soliciting people outside the organization. It is said that this system will surely fail, and it has been pointed out that this system will be certified as an NFT structure. There are people who call pyramid schemes the mechanism of rewards that enter creators when NFTs are traded between third parties.
Most of the NFT art works are destined to crash after listing. Most NFT collections depreciate in value after release. Like stocks, the price is quite unstable, so there are many people who are scared and can’t get their hands on it.
The future of NFT art
However, on the other hand, the NFT market itself is very active in the first place, and many people are very optimistic about the future.
The NFT market is where famous artists and celebrities are actively entering. Perhaps because of that, the reality is that the popularity of NFT is increasing considerably. As a result, the volume of traffic has increased considerably. It is expected that the number of participants will continue to increase in the future.
Entry of major companies
The NFT market currently has a large number of individual investors, but it is said that individuals will not be able to compete in the future. The reason is that big companies are entering the market. Very famous companies such as Facebook and Square Enix are entering the market one after another, and Softbank and KDDI are expected to enter the market in the future.
Advertising on SNS
The popularity of NFT is increasing due to the promotion of NFT by SNS. There are so many people who advertise not only on Youtube, but also on Twitter and Instagram, so it seems that more ordinary people will enter this market in the future.
wide range of uses
Does it make sense to buy an NFT? Many people have doubts, but NFTs can be purchased and used as SNS icons, resold, and even used as collateral to borrow money. It has so many uses because it can be used in so many different ways.
Gate.io allows you to enter the NFT marketplace and actually do business. To do so, you will need to open an account. If you want to sell your work, open an account. I also introduce it in the following article.