Vignesh Sundaresan, known to the cryptocurrency community as MetaKovan, hit the headlines in March for his record purchase of Beeple’s NFT “Everydays: The First 5000 Days” for more than $ 69 million.
As the founder of the Metapurse NFT project and a large investor in space, I would assume he would be completely bullish on NFT. But Sundaresan warns that those trying to take advantage of the chips “are at great risk,” he told Bloomberg.
NFTs “are not primarily an investment … It’s even crazier than investing in cryptography,” he said.
NFTs, or non-expendable tokens, are unique digital assets, including jpegs and video clips, that are represented by code registered in the blockchain, a decentralized digital book that documents transactions. Each NFT can be bought and sold, just like a physical asset, but the blockchain allows you to track ownership and validity.
While the NFT market has grown this year, things have recently changed. Apparently, the sales volume of the tokens has decreased, with a decrease in prices as well. (Although not everyone thinks NFTs are a bubble).
Sundaresan gives a lot of support to NFTs, but “I don’t think NFTs keep the same kind of advertising forever about high value items,” he said.
“The market will split. There will be very few high value items and an infinite number of very low value items.”
Similarly, Mike Winkelmann, the artist known as Beeple, compared the NFT market to the dotcom bubble. Just as certain companies, such as Amazon, survived the eventual downturn, and others did not, Winkelmann predicts that some parts of the NFT market will thrive while others will wither.
“I’m very, very bullish on technology and space in the long run,” Winkelmann recently told CNBC Make It. “I just think people need to be careful right now because it’s there [was] a hurry and it’s so new. It’s pretty speculative. “
As Bloomberg noted, when Sundaresan revealed itself to be the buyer of eight-figure Beeple NFT, some speculated that it would raise the price of its own NFT collection. But Sundaresan denied it and told Bloomberg his motive was to “support the artist and showcase the technology.”
“The file [Beeple] this piece will come to life on its own, that’s what makes NFTs really interesting, “Sundaresan told CNBC in March.” It may not just be a piece of art, but it can become thousands of other things. But I will not sell it soon. “
Sundaresan predicted that “there will be hundreds of thousands of people around the world who will adopt this medium, a digital medium to monetize art,” he said.
“There will be an economy around it.”
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