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NFT Expert Zeneca Evaluates Investment Potential of NFTs Today
- The Australian Tapping into Crypto podcast interviewed ZenAcademy founder Zeneca, to hone in on the state of the NFT market.
- Zeneca discusses how NFTs have a broad range of use cases, including for GameFi, decentralising the domain name market, and that widespread adoption may be coming over the next thirty years.
- He also mentions that the biggest current barrier to an NFT breakout is that Web3 gaming isn’t all that fun.
- The NFT market trading volumes have suffered of late, but the floor price of blue chip digital assets is rising.
- Zeneca believes this uptrend could continue, but argues the best time to buy NFTs is when everyone declares them “dead”.
Australian crypto podcast Tapping into Crypto, sat down with NFT expert and founder of educational platform ZenAcademy, Zeneca. The hosts covered all things Web3, but in particular, put the magnifying glass to the NFT market to answer one question:
Is now a good time to buy?
Related: Tap-to-Earn Games on Telegram Leading to Crypto Mass Adoption, Says Former Binance Exec
NFTs Can Create Free Decentralised Markets for a Range of Asset Classes
The trio begins the discussion by looking at the evolution of NFTs. Specifically, Zeneca addresses how digital collectibles have transformed from cute pixelated images of cats into assets with real-world utility.
While the sector’s immaturity means that NFTs are still tied to speculation and gambling, its growth over the past few years is already demonstrating the impact these assets can have.
For example, Zeneca touches on how NFTs can be a big deal for domain names going forward. In Web2, developers, businesses and individuals rely on third-party entities to manage and distribute website names. However, NFTs could unlock a decentralised market for domain names, giving extra earning power to hosts and more freedom to web developers.
Gaming assets are another logical home for real-world NFTs as they can provide real ownership over in-game items that are occasionally worth thousands of dollars.
If we look at it from a 5-10-20-30 year horizon, NFTs will just become part of our lives and people won’t even think about it…That’s the golden crypto moment…when you don’t realise you’re using it…and we’re starting to get closer to that.
Zeneca NFT and Gaming Only Works When the Games are Actually Fun
Zeneca does touch upon some roadblocks that are currently preventing the NFT market from truly breaking out. He notes that digital collectibles have long been tied to Web 3 gaming – and that players of games like Minecraft, Fortnite and Roblox are willing to splash cash on items. The reason these models work is that buyers aren’t just looking to speculate on an asset – they want to hold onto their in-game skins and flaunt them to other people (or themselves).
Web3 gaming will only work when we have games that are actually fun…people have been talking about gaming for five plus years…but it was way too early to make a good game…I think only now we’re starting to see some potentially good games that can crack that narrative.
Zeneca Once people start playing GameFi games for the game – rather than the profit – is when we might see NFTs start taking off.
Contrarian Investing: Investors Should Buy NFTs When the Market is Declared “Dead”
For now, trading volumes for NFTs have “fallen off a massive cliff” since its 2021 highs. While this might be disheartening to investors, in reality, buying into a market when it’s at an all-time low can present a great investment opportunity.
Zeneca believes now is a “good time” to invest in NFTs, but notes that the floor prices of certain tokens are starting to rise and the presence of NFT bros on Twitter (and other social media) is also beginning to swell.
Related: Ripple CEO Brad Garlinghouse Says RLUSD Stablecoin Weeks Away, “Not Months”
He argues that when the general consensus is that an asset is dead and buried, that’s when investors should pounce.
[Now] might still be a good time if this rally continues, but I generally advise waiting till it’s written off, [when] people are like ‘NFTs are dead, they’re never coming back’…[that] is a good time to buy things.
Zeneca This is not a new investment philosophy – the renowned British banker Nathan Rothschild once said: “The time to buy is when there’s blood in the streets, even if the blood is your own.”
Time will tell whether the NFT market can continue its rebound, or if it will be stuck in limbo with crypto for the coming months.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
