TLDR
- Yat Siu from Animoca Brands confirms that NFTs are still popular among wealthy collectors despite market declines.
- NFT sales have dropped from over $1 billion in 2021/2022 to around $300 million, but high-net-worth individuals continue to invest.
- Siu compares NFT collectors to art collectors, saying both groups value unique digital assets in a similar way.
- Despite a significant drop in his personal NFT portfolio, Siu views his assets as long-term investments.
- The cancellation of NFT Paris is seen by Siu as a reflection of France’s changing stance on crypto, not a sign of NFT market failure.
The NFT market has experienced a decline in valuations compared to its 2021/2022 highs. Despite this, NFTs remain a popular asset among wealthy collectors. Yat Siu, co-founder of Animoca Brands, highlighted that although NFT prices are lower, the interest of high-net-worth individuals continues to drive the sector.
Wealthy Collectors Keep NFTs Alive
Yat Siu emphasized that the NFT space is still thriving, driven primarily by wealthy collectors. He likened NFT collectors to art collectors, such as those who buy works by Picasso. These collectors find value in digital art in the same way a traditional art collector would value physical masterpieces.
Siu, a collector himself, noted that NFTs have become a part of a vibrant community of like-minded individuals. “It’s a community,” he said, sharing his belief that NFT collectors are akin to those who gather rare items like Ferraris or Rolex watches. Despite a decline in prices, the market continues to have strong backing from affluent buyers.
The NFT market’s monthly sales have significantly dropped from the over $1 billion peak in 2021/2022 to around $300 million today. Despite the downturn, the market is still active, with high-profile figures like billionaire Adam Weitsman continuing to invest in NFTs. Weitsman has been purchasing land deeds in Otherside, a virtual world by Yuga Labs, and other assets such as Bored Apes.
Siu remarked that even though his own NFT portfolio has seen a decline of approximately 80%, his investments are long-term. He clarified that these assets were never meant to be flipped quickly for profit. The lower valuations of NFTs are seen in a broader context, according to Siu, as the market was almost non-existent five years ago.
NFT Paris Cancellation Linked to Broader Issues
The cancellation of NFT Paris, a key event for the NFT sector, raised questions about the future of the market. However, Siu dismissed the idea that this was a reflection of the NFT market’s health. “It’s an indictment of France,” he said, referring to the country’s shifting stance on crypto and NFTs.
Siu pointed out that France has moved away from its initial support for crypto, with recent scrutiny of NFT projects like Sorare. He also cited security concerns, as high-profile crypto figures have been targeted by criminals in France. This sense of insecurity has led some to avoid visiting Paris for NFT events in recent months.
While NFT Paris may have been canceled, the underlying NFT market remains resilient, driven by the continued interest from wealthy collectors. Despite challenges, this sector remains a prominent part of the broader crypto landscape.
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