Yat Siu, CEO of Animoca Brands, stated that the NFT market will not only recover from its current downturn but also surpass the record performance it achieved in 2021. Despite declining sales volumes and the closure of projects like Nike’s RTFKT and Kraken’s NFT Marketplace shutdown, Siu remains confident that setbacks for individual initiatives won’t hinder the industry’s overall progress.
Siu emphasized that the failures of certain projects are a normal part of the business cycle.
“Just like in any other industry, some projects succeed while others fail,” he said, referring to RTFKT’s shutdown.
In his view, it’s important not to fixate on isolated failures, but rather to see them as steps toward sustainable growth.
One factor behind future growth, according to Siu, is the status-driven nature of NFTs. He compared them to luxury goods that enhance the owner’s reputation.
“When you own a piece of art or a rare NFT such as Bored Apes or CryptoPunks, you gain more than just an asset — you invest in your own reputation,” he noted.
This sentiment is reflected in recent market moves. Earlier, a user known as Seedphrase secured the largest NFT-backed loan in history — $2.75 million using a unique CryptoPunk #8348 as collateral. He stated that his actions confirm that NFTs are evolving from cultural artifacts into dynamic financial instruments.
Despite the downturn, Siu believes NFTs will remain attractive due to their cultural and symbolic significance. According to him, a resurgence in the market awaits, potentially unlocking new opportunities for investors and collectors.
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