NFT tokens will not become an alternative to DeFi tokens
NFT tokens are ideal for the show business industry
You can make money on NFT tokens by selling them on exchanges
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What is an NFT token, where does it belong, and how will this segment of the cryptocurrency industry develop? BeInCrypto editors talked to industry experts about this and much more..
Non-fungible tokens (NFT) have become a new trend in the cryptocurrency market. Such tokens are a type of unique digital assets that are not identical to each other and therefore cannot be exchanged equally. According to some experts, NFT tokens may generate a new big wave that will cover the market, like the ICO fever or the DeFi boom once did. BeInCrypto found out from experts whether NFTs will be able to supplant DeFi tokens and how you can earn on this asset.
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Oleg Kurchenko, CEO of Binaryx:
Before talking about whether NFT tokens will compete with DeFiDecentralized finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More, let’s understand what NFT tokens are. The key characteristic of NFT tokens is uniqueness. It is of three types:
- a single copy of the token (the only unique character);
- tokens in several copies (2 or more identical artifacts);
- when the first option has the second option (inheritance principle).
DeFi tokens, as we know, do not have such properties. Therefore, these are two different types of tokens and each has its own market and its own consumers. From the description it can be judged that NFT tokens are applicable to the world of entertainment, and DeFi is still finance..
It follows from this that NFT tokens are applicable to the gaming sphere, the sphere of music or the tokenization of the digital world, as some kind of property that is unique, well, or relatively unique. As we know, the higher the uniqueness and demand for a thing, the more expensive it is (the higher its value). For example, these are artifacts, I think there is no need to explain that it is.
Price formation is precisely the demand and expectation of a price increase in the future. We all remember crypto cats (a game written in ETH). So, the price of some characters reached 100 ETH and higher – the more unique, the more expensive.
In fact, NFTs are cats, this is a vivid example of how to use these tokens. You buy or earn something unique and put it up for sale. Over time, if it is demanded, the price will rise. An example would be the resale of domain names in our real time. Some domain names go up to 100,000 USD in their value. That is, you can earn on NFT tokens by resale.
Dmitry Filyaev, CEO of DYMMAX:
ERC20 tokens are certainly a convenient tool, it can be considered in relation to the financial sector, as a digital analogue of exchange instruments. But do not forget about the OTC market (OTC), in the field of centralized finance, its scale is enormous. Given the interest of investors in the DeFi sector, NFT tokens will find their niche in the foreseeable future.
An interesting option for using NFT tokens is the issuance of OTC options for cryptocurrencies and tokens, the parameters of which differ from standardized contracts. At the moment, there is no platform that allows you to conveniently conclude such contracts, but the emergence of such services is only a matter of time and is a stage in the development of derivatives trading.
The history of projects using NFT tokens is still too small. They can be seen rather as a test of the pen. The use of this type of tokens in collectible games and similar projects, of course, does not add value to them, and their assessment is subjective. But using NFT tokens to create derivatives gives them a value that is tied to the price of the underlying asset. They can be used, among other things, to create insurance contracts, for example, for a long term or an individual underlying asset. And profit and loss on them are formed based on the price of the underlying asset.
Ales Kovalevich, CEO of BDCenter Digital:
NFTs can become promising tokens as a digital signature or identification element for legal agreements such as inheritance rights or the sale of property. And just what it is: As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More, gives it the opportunity to be resold in the secondary market. Thus, for example, a real estate transaction can be carried out in a fraction of a second with a complete transfer of ownership. This is where the opportunity for speculation arises.
It is also quite possible to use NFT as an investment package with an individual set of characteristics or rights to other tokens, as well as property ownership rights.
Non-fungible Tokens: DeFi Sector No One’s Looking At⁉️
Thus, speculation is possible based on the growth in the value of the underlying asset, only now the demand for the token will cause an increase in the price of the asset, and not vice versa. As an example, the emergence of a token with rights to the “La Gioconda”: the corresponding open demand for the acquisition of this token can increase the value of the picture, which is formed only at one-time auctions.
An important advantage can be the splitting of the asset into tokens: for example, people will be able to own 1/1000 of the painting of La Gioconda. It looks incomprehensible in real life, but in the digital world this is a normal practice. Therefore, you can count on at least PR-events with this tool. If successful in changing the price for the seller, the topic will gain popularity..
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