“NFTs are the riskiest assets in a virtual economy”

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2021-03-26 07:24:41

The CEO of French bank BNP Paribas considers NFT to be the riskiest type of digital asset, but he also believes that the field could become the underlying infrastructure in the virtual economy.

Outburst NFT Lately have seen some individuals make a lot of money from digital collections. Everything from artwork, virtual lands to sports cards and even tweets is now NFT tokens.

Investing in NFT is like gambling

With this raging NFT mania, investors worry that this could be another bubble. Recently, John Egan – CEO of French bank L’Atelier BNP Paribas – announced investing in NFT is like gambling, adding that they are the riskiest asset class in virtual economy.

In an interview with Bloomberg, Egan noted that while most people are drawn into the NFT space because of the thrill of making so much money and gaining ownership over digital assets, then it is becoming a problem.

Ownership issues

He pointed out that ownership issues are becoming a huge problem in the NFT space as people are currently stealing other people’s works and turning them into NFTs.

What I think we’ve seen more and more over the past few months is that people are trying to claim NFT-based ownership of other people’s copyrighted tweets … We have seen a lot of fields. The works of many artists have been stolen ideas by people who are counterfeiting the NFT, even though these people are not real authors.

Egan also claims that the NFT space is so risky that it can be identified as the riskiest asset in the digital asset world. He likens investing in NFT to gambling in a casino where winning is based on luck.

[NFT] is an alternative emerging digital asset. I don’t think we can find more risky assets [chĂșng] in this moment. I think perhaps, at this stage, it’s like going into a casino. You know you’re going to spend money, but maybe you’re doing it to enjoy, to experience. If you win, you’re in luck and I think that’s the way we should think about it [NFT] in this moment; It is in the early stages.

Basic infrastructure

However, despite admitting there are risks associated with NFTs, Egan remains optimistic about their strength in the crypto industry.

I expect the NFT to be one of the underlying economic infrastructures in the virtual economy in the next ten years, especially as that virtual economy begins to emerge in the real world.


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