Non-fungible tokens (NFTs) have hyped the art market and adjacent industries this year, but their extreme volatility makes it still too early to say on the future of NFT. According to one of the earliest crypto pioneers, Fred Ehrsam, most of NFTs in the market might lose their value in a few years.
In an interview on Bloomberg TV, Ehrsam compared the rise of crypto assets to the dot-com boom on the brink of 2000.
“I go so far as to say that 90% of NFTs produced, they probably will have little to no value in three to five years,” Ehrsam said. “You could say the same thing about early internet companies in the late ’90s,” said the Coinbase co-founder.
Such a dynamic rise of the cryptocurrency world won’t be possible without Fred Ehrsam’s efforts. In 2012 he left his position as a trader in Goldman Sachs to help set up cryptocurrency exchange Coinbase with Brian Armstrong.
In 2017, after Coinbase became the largest crypto exchange in the U.S., he launched Paradigm, his own investment firm, also focused on blockchain technologies. This year, Coinbase went public at a tremendous $100 valuation.
By Ehrsam’s words, NFTs are similar to any other crypto project born suddenly out of the hype.
“People are going to try all sorts of things. There’ll be millions and millions of cryptocurrencies and crypto assets, just like there were millions and millions of websites. Most of them won’t work,” he explained.
However, despite recent fluctuations, Coinbase co-founder sees the cryptocurrency as “the next internet-sized opportunity for the United States.”
“The world doesn’t change overnight, but you can see the seeds of exponential growth occurring already,” he stated on Bloomberg TV. “I do think we will live in a future where for us to coordinate, we won’t need these centralized platforms today. That’s already true of financial services, in that you can be your own bank. You don’t need a central institution to hold your money anymore.”