The nonfungible tokens (NFTs) appear to have dominated the crypto market in 2021 rising from ‘nowhere’ to go mainstream. Many experts and analysts believe that the nascent space will continue thriving this year. However, some naysayers and critics believe otherwise.
Ryan Carson, chief operating officer (COO) at the online podcast PROOF Collective, has joined the list of notable industry heads, analysts, and investors who continue sharing their expectations of what will happen in the crypto industry this year.
In his prediction, Carson foresees non-fungible token (NFT) marketplaces heading to a massive crash soon. In a February 22 post, Carson predicted that the nascent space of non-fungible token (NFTs) will crash in the next six months, an event that he believes would mimic the 2019 Initial Coin Offering (ICO) collapse, adding:
“The quick-flip 10k PFP projects, me-too derivs, and wolf games copies will flame out because all the Coinbase credit card buyers will lose 100% of their ETH.”
Carson also noted that much institutional and private wealth, including gaming universe projects, gated NFT community, original like Punks Chromie Squiggles, alongside Decentralized Autonomous Organizations (DAOs) with more than $100 million treasuries, will double down on several categories.
Moreover, high-profile players may also strengthen their staking to metaverse projects that have recently gained tremendous traction, such as The Sandbox and Decentraland. The top official also noted that a cohort of experienced investors would leverage the decentralized finance (DeFi) ecosystem to ramp up while remaining long on ETH.
The move will make the market flood with more capital, focusing on high-quality original projects, which will drive the market prices upwards. Consequently, the NFTs fractionalization will go mainstream, attracting retail collectors and investors to re-enter the market to buy only the already high-priced quality projects.
Before summarizing, Carson bullishly said that the NFTs’ nascent space might excel if key players stop chasing “quick-flip get-rich schemes.”
Weak NFTs P2E Economies
It is worth noting that Play-to-Earn (P2E) non-fungible token-powered games have become the latest big trend in the crypto and blockchain world. However, nothing lasts forever, with the current bearish market revealing that all shortcomings and viability of a project do not have real-world demand.
The 2020-2021 bullish market is a perfect example. The Bull Run drove up the demand for NFTs and in-game rewards, creating profitable opportunities for many players and uplifting the entire economy from just a passive hoppy to a multi-billion-dollar industry.
In that case, according to Jason Choi, a general partner at Spartan Capital, P2E games will be less profitable than they are today in the absence of a bull market, adding:
“If the financial proposition of P2E games begins to dim, it must make up for it by having fun-parity with popular Web 2 games, especially if they are to command unicorn valuations.”
While referencing Axie Infinity’s strategy to gameplay and economics, Choi added that the current model for guild run scholarships, DAO tooling, marginally improved version of DeFi incumbents, and Layer 1 with no treasuries might not last.
Will the NFTs space thrive or wither in the coming months?
