Install Sina Finance client to receive the most comprehensive market information at the first time →【 Download address 】
Beeple's "Everydays: The First 5000 Days Cryptocurrency entrepreneurs who invested more than 69 million dollars to buy a digital art work shouted to speculative buyers of non homogenous tokens (NFT): prepare to lose money.
Vignesh Sundaresan, whose online name is "MetaKovan", bought Beeple's "Everydays: The First 5000 Days" at a record amount last month, which attracted the attention of everyone. Sundaresan said that his motivation was not to make money, but to support the artist and show this technology.
In a video interview, he said that anyone trying to make money from NFT would "take huge risks" and "this is even crazier than investing in cryptocurrency."
These comments come from a person who has made a lot of money through cryptocurrency and is almost unparalleled in promoting NFT mania, which may be hard to think about. But it is also difficult to refute Sundaresan's warning: from the peak in February to the beginning of April, the average NFT price tracked by Nonfungible.com fell by nearly 70%.
Sundaresan created a token named B.20 to realize "shared ownership of open art projects", including some works of Beeple. Since he won Everydays at Christie's auction on March 11, the price of the token has dropped from $23 to about $7. According to CoinGecko.com, the token traded at less than 50 cents in January.
Such ups and downs have triggered a debate about NFT (digital authenticity certificate in essence), whether it will have a lasting impact on the market of artworks, collectibles and other products, or just another example of the investment bubble. A few people get rich and the latecomers suffer.
Some skeptics question whether Sundaresan's purchase of Everydays is, to some extent, to improve the value of his existing NFT positions. He denied profiting from it and said that he never sold B.20 tokens held by individuals.
On the long-term prospects of NFT, Sundaresan agrees with some views of bulls and bears. He described this technology as a lasting innovation, which will bring "new sponsorship campaign" to artists and other content creators. Many of them now rely on online platforms such as Instagram to support their revenue model with advertising. However, Sundaresan also said that the enthusiasm surrounding some high priced NFTs may fade.
"I don't think the high priced NFT will keep this hot forever," he said. "The market will be divided. There will be few things with high prices, but there will be no limit to the things with low prices."
He said that the best way to participate is to buy NFT from the artists you want to support. Sundaresan, who was fond of stamp collecting and WWE wrestling cards since childhood, said that investment should not be the main purpose.
Sundaresan said that he never communicated with Sun Yuchen. Sun Yuchen competed with him in the auction of Everydays until the end. But they also have one thing in common: they worship Warren Buffett. Sun Yuchen spent a record $4.6 million in 2019 to win the opportunity to eat with Buffett, although Buffett once compared Bitcoin to "rat poison".
Massive information, accurate interpretation, all in Sina Finance APP
Editor in charge: Zhang Yujie SF107
