Binance CEO Changpeng “CZ” Zhao recently expressed shock to the exponential growth of the NFT market since last year.
CZ admitted that he wasn’t an art collector, but was also surprised at the prospect of paying $ 69 million for digital art. This is a record amount for artist Beeple to sell his work. Year.
Still, CEO Binance pointed out a clear positive point about the fad and said it made it easier for artists to monetize their work.
Is NFT a bubble being created?
Mentioning the sale of Beeple, CZ pointed out that nothing was of great value and likened the market to a potential bubble.
But if you’re willing to pay for it, and that person suddenly changes his mind, it’s no longer worth it, CZ told Fortune.
Beeple has also expressed concern about the bubble in the NFT market compared to the dot-com boom of the 1990s. However, like the dot-com crash, we expect the NFT market to undergo similar rapid integrations in favor of quality work.
CZ said market growth will attract more artists and improve overall quality.
The value of the NFT market has grown significantly from $ 95 million at the end of 2020 to $ 25 billion by 2021. Traditional finance usually follows such a significant surge with a similarly significant consolidation. Case.
The NFT boom has shown signs of little stopping this year so far, and several traditional companies have entered the market. After Ukraine opened the NFT Museum to cover the conflict with Russia, the space became much more popular.
Social factors are a major factor
Popular NFT projects such as Bored Ape Yacht Club (BAYC) and CryptoPunks are angry because they aren’t inspired by graphics, but tokens are still sold in bulk at 109 ETH ($ 381,670). The lowest price you can pay to own a BAYC.
Most of the charm comes from the status of owning a BAYC or other popular NFT. Some celebrities and media figures own such tokens, which essentially raises awareness of the NFT project.
Space also attracted short-term investors to buy into the project hoping they could quickly flip the tokens over for profit.
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