Gary Vaynerchuk is outspoken about his passion for non-fungible tokens, but he believes the market will experience a downturn.The entrepreneur and CEO of VaynerMedia compared the current NFT craze to the early 2000s dot-com stock market boom in an interview with CNBC.
“This is internet stocks 99,” said Vaynerchuk when asked about the current NFT landscape. “I put out content every week saying that 98% of [NFT] projects are going to zero. Most of the behavior I see in NFT buying reminds me of the way people bought beanie babies.”
“In March 2000 when all those internet stocks which were grossly overrated and collapsed, Amazon was sitting there at seven or eight dollars per share, the same thing will play out in the NFT space,” Vaynerchuk said.
Vaynerchuk has 2.9 million Twitter followers and is the creator of the hit NFT series Vee Friends. A single Vee Friends NFT currently costs 13.25 ETH (about $41,000 USD).
He feels that digital assets are still in their infancy. He urged investors to acknowledge that while “things don’t make sense right now,” NFTs will eventually become a prominent and established market.
The NFT space, according to Jonathan Victor, business development head for NFTs at Web3 startup Protocol Labs, is just getting started. He argues that if individuals stop focusing on the phrase “NFT,” a lot of the advantages will become obvious.
“People will stop talking about NFTs as NFTs, and the focus will shift to what they actually offer,” Victor told Insider. “Instead of just fixating on the term, we’ll look at what the digital objects can do for us.”
Victor showed how vaccine cards may have been enhanced if they were NFTs because they have built-in proof of ownership on the blockchain. People would then have proof of who issued it, who it was assigned to, and the day and time it was issued — all while reducing the possibility of counterfeit cards.
He anticipates events or sports tickets to shift to NFTs for the same reasons.
“Soon NFTs will just be things we use in a time where everything will be digital and interoperable. We’ll eventually get less excited about the term ‘NFT,’ and people won’t even think about items as NFTs anymore.”