Bankman-Fried From FTX Is Cautious About Nascent NFT Space

In an interview with CNBC’s Street Signs Asia published on Tuesday, Sam Bankman-Fried expressed cautious optimism about non-fungible tokens (NFTs) growth rate over the past year. Sam warned investors that they could become vulnerable to the dynamics of volatile markets. This may happen if they are not properly educated in this area.

He is a 29-year-old crypto entrepreneur. He is also the founder of trading company Alameda Research and crypto derivatives exchange FTX. Sam hinted that the conversions happened to his own clients who intended to buy his digital assets. However, those clients may become hesitant. This might happen when they will be asked and challenged about the true utility of their new asset. Bankman-Fried claimed:

“It’s almost going mainstream faster than the mainstream understands what it is they’re adopting, which is a weird phenomenon”.

He further continued, “It could lead to just incredibly fast and giant adoption. It could also lead, frankly, to sort of a sour taste in people’s mouth if there’s a crash, and no one ever quite figured out what it was.”

In such an emerging space, it is clear that the nature of the NFT market is relatively undeniable. Unlike the cryptocurrency market, which has experienced countless ups and downs, NFTs have not yet been tested. They are just going through good times, so to speak. At least for now, NFT sales are continuously hitting record highs. It is leading to increased awareness and cultural acceptance in the mainstream market. Maybe, with the simultaneous growth of decentralized financing or the DeFi sector, the market will be able to maintain these dynamics in the long term.

Sam Bankman-Fried Concludes

The payment processing giant, Visa, acquired the iconic avatar of CryptoPunk on Monday for just under 150 Ether (ETH) which is the equivalent of $150,000 at the time. In parallel, crypto entrepreneur Jordan Fried recently announced the upcoming launch of NFT.com. It is an alleged market initiative supported by seasoned investor and Shark Tank panelist Kevin O’Leary.

Lastly, Bankman-Fried concluded his interview by saying, “Certainly, people have made money selling them. That would be one way to get into the game if you can understand what it is that makes them desirable.”