Anthony Pompliano, the co-founder of venture capital firm Morgan Creek Digital, admitted that the non-fungible token (NFT) sector is going to be much larger than he expected.
He noted the rise in popularity of NFT, pointing out that token sales hit a record high in the second quarter of 2021.
Pompliano also recalled that in August alone, the trading volume of the NFT marketplace OpenSea exceeded $ 3 billion. In his opinion, interest in non-fungible tokens is driven by the desire to "recreate the collectibles industry" in the digital environment. Another factor the Morgan Creek co-founder called "the formation of a new status game in real-time."
“Every person who usually spends between $ 50,000 and $ 1 million to buy a car, watch, house, boat, etc. now he realizes that he can spend the same money on a digital product and display it in front of a large number of people on the Internet,” wrote Pompliano.
Trending: Smart Contracts Audits Startup Hexens Closed $4.2 M Seed Funding
According to him, monetary and fiscal policies "created a manageable financial environment":
“Many traditional assets like bonds are now giving negative real returns, forcing investors to move further and further along the risk curve. The only way to increase your returns and make a profit is to start doing what used to be considered insane."
Pompliano noted that the real reason for the popularity of NFT is likely a combination of all of these points of view.
The Morgan Creek co-founder recalled that in September 2020, he predicted a 6,000-fold growth in the digital art market. In his opinion, he underestimated the sector.
Trending: Finder: Bitcoin could hit $80,000 by 2025
“The non-fungible token industry is a market-expanding technology that will absorb not only digital art but collectibles, luxury, and much, much more,” said Pompliano.
He also noted the development of industry and technology, which "increases potential market opportunities."