Yat Siu sees brighter future for NFTs as cultural assets
Yat Siu Animoca Brands
Non-fungible tokens (NFTs) are set to stage a major resurgence, potentially surpassing the frenzy of 2021, according to Yat Siu, chairman of Animoca Brands.
In an interview with Cointelegraph during the Bitcoin MENA event in Abu Dhabi, Siu expressed confidence that NFTs will return stronger than ever, driven by their role as modern-day status symbols.
Back in 2021 and early 2022, NFT trading volumes ranged from $1 to $5 billion monthly, peaking at $6 billion in January 2022. However, volumes have since plummeted, struggling to hit even $1 billion in recent months.
The downturn has prompted some high-profile closures, including the shutdown of Kraken’s NFT marketplace and the upcoming closure of Nike-owned RTFKT.
Failures Are Part of the Cycle
While some see these closures as a sign of decline, Siu views them as part of the natural evolution of any industry. “That’s true for companies too,” he noted. “How many fashion brands or gaming companies have launched products that didn’t work? That’s life.”
Siu believes that certain NFT projects will inevitably fail, but others will succeed. He likens NFTs to luxury items such as high-end fashion and art, which people buy as a means of enhancing social status. He sees this dynamic playing out in the NFT space, with collections like Bored Apes and CryptoPunks serving as "reputation-based investments."
“If I own a Picasso, my reputation changes,” he explained, drawing a comparison to high-value NFT ownership.
Despite recent setbacks, Siu’s outlook remains bullish. He predicts NFTs will re-emerge as powerful cultural and social assets, with their influence extending well beyond speculative investments.
As the cryptocurrency market surged, Bitcoin reached a new all-time high (ATH). The NFT market also experienced significant growth, with sales rising 34% to $196.2 million over the past 7 days, led by Pudgy Penguins.
