The non-fungible token industry looks bleak: asset valuations are far from their 2022 highs, and the flagship NFT Paris event was canceled just one month before opening. However, Animoca Brands co-founder Yat Siu offered a different perspective on the sidelines of the CfC St. Moritz forum. According to the investor, the market is not dead but has purged itself of speculators, while the issues surrounding the Paris event lie in physical security and politics.
A Market for Whales
Monthly NFT sales volume has stabilized at the $300 M mark. This is significantly less than the peak $1 B, but the segment retains liquidity thanks to a shift in dynamics. Retail players hungry for quick profits have left the market. The remaining core consists of wealthy collectors who view digital artifacts as status symbols, similar to Picasso paintings, Ferrari supercars, or Rolex watches.
Siu confirmed this thesis with a personal example. His NFT portfolio is down about 80% in dollar terms, but he has no intention of selling the assets. The head of Animoca Brands calls these “long-term plays.”
Big capital continues to publicly enter the sector: billionaire Adam Weitsman is openly acquiring Otherdeed lands and Bored Ape Yacht Club tokens, forming a community of like-minded individuals around himself.
Blockchain statistics are transparent: five years ago the market was zero, yet today it generates hundreds of millions of dollars monthly. The current phase represents a cooling of an overheated market and a return to normality.
A Toxic Jurisdiction
Siu is confident that the cancellation of the NFT Paris conference is not linked to a lack of sponsor interest; the reasons lie in a sharp shift in France’s regulatory climate. The country, which previously positioned itself as a crypto hub, has reversed course: even national champions like the platform Sorare, which has faced claims from gambling regulators, have come under attack.
A far more alarming factor is physical security. Over the past year, France has seen a spate of attacks and attempted kidnappings targeting top managers of crypto companies and major investors. Siu noted that many industry representatives are intentionally avoiding trips to Paris for fear of becoming targets for criminals. The cancellation of the event serves as a marker that Europe is becoming a toxic jurisdiction for holders of crypto assets.
Read also:
- NFT Sales Collapse 37% Amid Record Supply Surge
- Crypto Millionaires Move from NFTs to Antiques — Bloomberg
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