‘You can gain everything and you can lose everything’ — here’s why experts remain skeptical about the NFT market

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  • NFT trading volume reaches $10.7 billion during Q3 2021
  • While NFTs may be a lot, the current craze is actually around collectibles and digital art.
  • However, many experts express concerns about the NFT entering the market at its current price point due to excessive hype and speculation.

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Non-fungible tokens – unique digital assets such as artwork and sports trading cards that are verified and stored using blockchain technology – exploded in popularity in 2021. People create, collect and trade NFTs for millions of dollars, some with the expectation of profit in the future. But experts still doubt that NFTs are a good investment.

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The NFT boom is still fairly new, but large amounts of money have already been exchanged between collectors. Since 2017, for example, more NFT collectibles have been generated. $6.2 billion in sales while digital art has generated more $1.9 billion, according to NonFungible, which tracks historical sales data for NFTs.

According to John McCormack, a professor of computer science at Monash University, “I think artifacts and collectibles have become a bigger object of NFTs because they naturally fit into NFTs.” “Being digitally copyable, it’s really important to have this additional certificate of authenticity to show ownership of that particular thing.”

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Researchers worry that this may be a bad time to enter the market, which has grown under a lot of hype and speculation. NFT trading volume hits 38,000% year-on-year increase $10.7 billion during the third trimester, for example, according to a DappRadar. analysis by, a company that helps people track NFTs and other decentralized assets.

“It may well be the apotheosis, the pinnacle in the paradigm of everything bubbles,” said Michael Avery, Rabobank’s head of financial market research for Asia-Pacific. “It worries me a lot, even though I completely understand the dynamic that drives young people in particular.”

Experts suggest buying NFTs because you want to buy it, not because you want to get into the hype.

“Don’t buy it because it’s an NFT,” said Vincent co-founder Evan Cohen. “Buy it because you love the art or buy it because you think the collectible is cool or the community is cool. You want to part for the property, not the underlying technology that powers it.”

Watch the video to know more about how NFT works as an investable asset.

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