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Are NFTs Still Viable Investments in 2024?

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Are NFTs Still Viable Investments in 2024?

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Non-fungible tokens (NFTs) — digital assets representing a wide range of tangible and intangible items and are recorded on a blockchain — reached peak hype a few years ago.

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At the time, they attracted huge amounts of money. For example, auction house Christie’s sold digital artist Beeple’s NFT collage for $69.34 million in March 2021. Other major NFT sales in 2021 included a two-lot auction from Bored Ape Yacht Club (BAYC) of Sothesby’s, which netted $26.2 million for 202 NFTs.

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Are NFTs Still Viable Investments in 2024?

Following the explosive growth, NFT trading volumes also saw a rapid decline thereafter – dropping a staggering 97% in September 2021 from its record high of $17 billion in January 2022, as per Bloomberg detailed at the time.

Although sales of NFTs have been lagging since then, as Benzinga reported, a huge sale took place in March: the CryptoPunk 3100 sold for 4,500 ETH, or $16 million.

And that, Benzinga noted, could be a harbinger of an NFT renaissance.

“We have certainly seen the NFT market go through a boom and bust cycle with so many investors focused on PFP [profile pictures] collections soaring, crashing and never recovering,” said Anthony Georgiades, general partner at Innovative Capital.

However, Georgiades also noted that several quality collections have flourished and, in turn, shown that they are likely to endure for the foreseeable future.

“After all, people like digital art, so I suspect this aspect of NFTs will continue to show some traction,” he said.

To know more: 13 cheap cryptocurrencies with the biggest upside potential for you

Less speculative market for NFTs at this time

According to some experts, the apparent resurgence of NFTs this year has less to do with speculative hype and more to do with meaningful real-world applications.

“NFTs are expanding their utility beyond digital art into industries such as gaming, real estate and digital identity, showing their potential for sustainable investment opportunities,” said Lani Dizon, co-founder of Zenza Capital.

Shiti Manghani, CEO of NFT gaming app STEPechoed the above notion, saying that the true value of NFTs lies in their utility.

“If you believe in a specific utility, let that guide you. But pure price speculation is never a good reason,” Manghani added.

According to Dizon, investing in NFTs has several advantages: they have diverse applications, offer proof of ownership and are easy to access through improved platforms.

The story continues

However, some of the cons, she added, include volatility, liquidity issues and the legal ambiguity surrounding them.

No full NFT return in sight, some say

On the other hand, some experts do not believe in the full return of NFTs.

“The flood of images with questionable value will not happen again,” said Ilya Stadnik, CEO of Zent.

According to him, NFTs can, in some cases, be a good investment — as long as there is careful selection.

“I could say that 99.9% of them are not worth considering. As I noted previously, the comeback is not happening, but new technologies bring hope for the transformation of the NFT market and greater integration in sectors such as gaming and online entertainment,” he added.

Critics: Not a viable investment

Finally, some experts have never believed in the value of NFTs, arguing that even in their heyday, they were never viable investments in the past – but instead vehicles for speculation.

“Distinguishing between speculation and investment is extremely important. Many speculators in NFTs, GameStop (or other meme stocks) were and are engaged in speculation and not investing,” said Robert R. Johnson, professor of finance at the Heider College of Business, Creighton University. “Speculators can certainly make a lot of money. But they also take a lot of risks.”

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This article originally appeared on GOBankingRates. with: Are NFTs Still Viable Investments in 2024?

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We are the editorial team of TokenTalk, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on TokenTalk, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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NFTs

NFT Market Flourishes With 11.62% Surge This Week; Largest Ordinary Registration Hits Record 8 BTC – Bitcoin Markets and Prices News

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NFT market flourishes with an increase of 11.62% this week;  Largest Ordinal Enrollment Gets Record 8 BTC – Markets and Prices Bitcoin News

https://news.google.com/./articles/CBMifWh0dHBzOi8vbmV3cy5iaXRjb2luLmNvbS9uZnQtbWFya2V0LWZsb3VyaXNoZXMtd2l0aC1hbi0xMS02Mi1yaXNlLXRoaXMtd2Vlay1sYXJnZXN0LW9yZGluYWwtaW5zY3JpcHRpb24tZmV0Y2hlcy1yZWNvcmQtOC1idGMv0gEA?hl=pt-BR&gl=BR&ceid=BR%3Aen

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Bitcoin.com Announces Launch of Verse Voyager NFTs with Exclusive Airdrop — Public Sale Begins April 24 – Press Release Bitcoin News

TokenTalk Staff

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Bitcoin.com Announces Launch of Verse Voyager NFTs with Exclusive Airdrop – Public Sale Starting April 24 – Bitcoin News Press Release

https://news.google.com/./articles/CBMigQFodHRwczovL25ld3MuYml0Y29pbi5jb20vYml0Y29pbi1jb20tYW5ub3VuY2VzLWxhdW5jaC1vZi12ZXJzZS12b3lhZ2VyLW5mdHMtd2l0aC1leGNsdXNpdmUtYWlyZHJvcC1wdWJsaWMtc2FsZS10by1zdGFydC1hcHJpbC0yNC_SAQA?hl=pt-BR&gl=BR&ceid=BR%3Aen

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NFTs

Exploring NFT Royalties: New Mechanisms and Challenges

TokenTalk Staff

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Exploring NFT Royalties: New Mechanisms and Challenges



Timothy MoranoJune 27, 2024 11:30 AM

Learn about the innovative mechanisms and challenges of NFT royalties, including staking and claim rights, as proposed by a16z crypto.




According to a16z cryptoThe evolution of NFT royalties is a critical area of ​​focus as the NFT ecosystem continues to expand. The article delves into the pros and cons of existing royalty designs and presents two innovative approaches that leverage incentive mechanisms to encourage royalty payments.

Current Challenges in NFT Royalties

Creators are grappling with the complexities of enforcing royalties in the NFT space, often relying on blocklists and whitelists. These methods can stifle innovation and composability, leading to the need for more flexible and effective solutions.

Introducing staking mechanisms

One proposed mechanism involves integrating staking with the whitelisting model. Traditionally, creators manually add marketplaces or apps to their whitelists, which can be time-consuming and delay adoption. By introducing a staking model, new apps can add themselves to the whitelist by staking money or resources as a commitment to enforce royalties. If an app misbehaves, the creator can cut the stake and remove it from the whitelist.

This mechanism aims to simplify the process, making it more open and encouraging permissionless innovation on top of NFTs. However, it raises questions about slashing arbitrage, stake size, and how to aggregate stakes across multiple NFTs.

The Mechanism of the Right to Complaint

The second approach, known as “claiming rights,” introduces a new ownership model where each NFT has an asset owner and a title owner. If these two owners are different, the title owner can claim the NFT at any time. To avoid this risk, the asset owner can pay a title transfer fee to the creator, becoming the new title owner.

This mechanism incentivizes royalty payments without restricting composability. It also differentiates between sales and non-sales transfers, ensuring that royalties are paid during actual sales transactions.

Impact on markets

Marketplaces may need to adapt to these new models to ensure a positive user experience. For example, they could bundle the payment of the title transfer fee with the sale transaction, transferring ownership of the title to the buyer and ensuring that royalty payments are made.

Both mechanisms aim to balance the need for royalty enforcement with the desire for open, permissionless innovation in the NFT space. They offer new ways to ensure creators receive fair compensation without compromising the flexibility and composability that make NFTs so appealing.

Future considerations

Claims rights and staking mechanisms are not without challenges. For example, involving NFTs to circumvent royalties remains an issue. However, these models provide a framework to address such challenges and expand the design space for NFT royalties.

As the NFT ecosystem continues to grow, the industry must work collectively to develop and refine these royalty mechanisms. The goal is to preserve composability, maintain digital property rights, and ensure creators are fairly compensated for their work.

In conclusion, a16z crypto’s exploration of new NFT royalty mechanisms highlights ongoing efforts to innovate and address challenges faced by creators. As more use cases for NFTs emerge, these mechanisms could play a crucial role in shaping the future of digital ownership and compensation.

Image source: Shutterstock

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Gala Games Introduces NFT Tradability, Empowering Gamers Through Web3

TokenTalk Staff

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Gala Games Introduces Tradability of NFTs, Empowering Players Through Web3



Rebecca MoenJune 28, 2024 1:59 PM

Gala Games leverages Web3 to empower players with tradable NFTs, increasing player freedom and control through platforms like OpenSea.




Gala Games is revolutionizing the gaming industry by leveraging Web3 technology to empower players with true ownership of their in-game items. This innovative approach enables the tradability of in-game assets on secondary marketplaces like OpenSea, increasing player freedom and control.

Limited-time primary sales and secondary market dynamics

Gala Games’ primary item sales are often limited in supply and time, creating a sense of urgency and exclusivity. However, these items don’t disappear once the primary sales are complete. Thanks to secondary markets, players can continue to buy and sell these coveted assets. Platforms like OpenSea make this easier by allowing players to list and purchase Gala Games NFTs, providing access to items that are no longer available through primary sales.

GalaChain Bridge to Ethereum

Gala Games’ NFTs are initially minted on GalaChain for use in their game titles. These NFTs are designed for seamless interoperability and can be easily bridged to Ethereum, making them tradable on OpenSea and transferable via Ethereum wallets. This flexibility ensures that players can maximize the utility and value of their assets across different platforms and applications.

When players are ready to use a secondary market item in a game, they can bridge the Ethereum item to GalaChain via their Gala account using their connected Ethereum wallet. More details on how to connect an Ethereum wallet can be found here here.

A new era of player freedom and control

The traditional gaming model often locks players into a single title, especially when significant time and money has been invested in acquiring in-game assets. With Web3 ownership, this is no longer the case. Players now have the freedom to explore new games without losing their accumulated assets, even if they decide to leave a game behind entirely. This paradigm shift promotes player freedom and control, breaking the cycle of being entrenched in a single game and encouraging exploration within the gaming ecosystem.

Unlock Web3 Ownership

Gala Games is committed to transforming the gaming industry through the power of Web3. The tradability of in-game items is a cornerstone of this transformation, providing players with unprecedented freedom and control over their digital assets. By leveraging platforms like OpenSea and the interoperability of GalaChain and Ethereum, Gala Games is creating a vibrant and dynamic marketplace that empowers players like never before.

For more details, visit the official source.

Image source: Shutterstock

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