Chinese state media warns of NFT’s “huge bubble”. The Securities Times and People’s Daily publications controlled by the ruling Communist Party of China warned citizens against buying non-fungible tokens (NFT) due to a potential bubble in the segment.
The statement says that the majority of NFT buyers are focused exclusively on financial speculation. And not on the visual qualities of the token.
“Once market enthusiasm wanes and the hype cools, the value of these many strange NFTs will greatly decrease,” wrote reporter Wang Junhui.
I absolutely think it’s a bubble
In March, digital artist Michael Winklemann, known also under the pseudonym Beeple and who sold a non-fungible token for almost $70 million, also called the situation on the market a bubble.
His digital work of art went under the hammer for $69.3 million. Moreover, Christie’s auction house noted that this made him one of the most valuable artists alive. “Everydays: The First 5000 Days” is a collage of thousands of Winklemann’s works published on the Internet since 2007.
“I absolutely think it’s a bubble, to be quite honest. I go back to the analogy of the beginning of the internet. There was a bubble. And the bubble burst,” Beeple said. He went on to say that it didn’t wipe out the internet. “And so the technology itself is strong enough where I think it’s going to outlive that.”
The growing popularity of NFT
Recall that in September, the co-founder of the venture capital company Morgan Creek Digital, Anthony Pompliano, accepted that he underestimated the NFT sector.
He admitted that the sector of non-fungible tokens (NFT) “will be much larger” than he expected. Morgan Creek’s co-founder noted the growing popularity of NFT. Also, Anthony pointed out that in the second quarter of 2021, token sales reached a record level.
“Every person who usually spends from $50,000 to $1 million to buy a car, watch, house, boat, etc. now understands that he can spend the same money on a digital product and show it to a large number of people on the Internet,” wrote Pompliano.