Animoca Brands chairman Yat Siu believes that non-fungible tokens (NFTs) will make a comeback and perform better than they did during their peak in 2021.
Siu told Cointelegraph in an interview at the Bitcoin MENA event in Abu Dhabi that NFTs will be “even bigger” than during 2021 and 2022. Back then, NFT monthly volumes ranged from $1 billion to $5 billion, peaking at $6 billion in January 2022, according to data tracker CryptoSlam.
Since then, NFT sales volumes have declined, struggling to reach even $1 billion. Projects expected to succeed have also decided to close down. On Nov. 26, crypto exchange Kraken wound down its NFT business, while the Nike-owned NFT project RTFKT announced on Dec. 2 that it would shut down operations in January.
However, Siu remains bullish on NFTs, saying failures are a natural part of business.
Animoca Brands chairman Yat Siu speaking on the Bitcoin MENA stage. Source: Cointelegraph
Some projects will work, and some will fail
Siu said what happened with RTFKT was “pretty terrible” and “disappointing,” but he said it was just a project that didn’t make it, implying that it doesn’t represent the broader NFT space. He told Cointelegraph:
“That’s true for companies, too. How many fashion brands and shoe brands or gaming companies or whatever have launched products and they haven’t worked, and then they shut down. That’s life, right? So, you know, and so I think that, I don’t think we can fault them for trying.”
The Animoca Brands executive said some projects will work while others will fail. “To me, that’s a normal cycle,” he added. Despite some of the failures in the space, he believes NFTs will continue to emerge as status goods.
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People spend money on luxury goods
Siu highlighted the role of NFTs as status symbols, comparing them to luxury goods that convey cultural and symbolic capital. He said when people make money, they often spend on reputation-based investments:
“When we’ve made money, we don’t spend it on making more money — we spend it on luxury goods. Nice house to live in, a car, new clothes, nice shoes. Right? These are not investments in a classical way. You can think of them as investments in your reputation.”
Siu said when a person’s reputation improves, they get more opportunities. “It’s a different type, right? If I own a Picasso, I have a reputation that’s very special,” he said.
Siu said it’s the same with NFTs like Bored Apes, Pudgy Penguins and CryptoPunks, which is why Siu believes NFTs will make a big comeback.
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