Can NFTs Survive the Current Gold Rush?

NFTs are among the most exciting new pieces of crypto tech that are taking the world by storm, and many people have started investing in them or trying to create new ones that can allow them to make their mark on the internet landscape. The high value of NFTs has resulted in a gold rush, but this begs the question, will NFTs be able to move beyond this hype and create a usage case that is not limited by their novelty value?

With all of that having been said and now out of the way, it is important to note that not all that many people think that NFTs are a responsible thing to invest their funds into. It turns out that only 48% of Americans and 22% of Brits seem to think that NFTs are safe, and that has a lot to do with the prevalence in the world of laundering funds and the like. A phishing campaign conducted on the OpenSea platform resulted in $2 million worth of NFTs being stolen, so it’s pretty clear that there is a reputational risk that most definitely needs to end up being addressed.

Still, NFTs saw over $44 billion in investments last year with all things having been considered and taken into account. That’s several orders of magnitude higher than the $100 million or so that was invested in the year prior, so it’s clear that the hype is making a lot of ultra wealthy individuals interested in how NFTs can service them, but the main issue with that is that it’s just not sustainable.

The lack of progress that various NFT companies have made with respect to their promised goals is another factor that is setting them back. A lot of work needs to be done in order to make NFTs palatable to the average person, because until and unless they obtain a widespread level of appeal that many people can adhere to this growth will not be maintained in the coming years. NFTs might become just another fad if steps aren’t taken to improve what people think of them right now.

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