No stranger to the world of entrepreneurship, serial investment, and understanding of evolving currencies and all things blockchains, in this short interview, Venture Capitalist Ryan Hoggan shares why he thinks the NFT space is going to explode.
Ryan, What’s Your Take on the NFT Market?
Ryan Hoggan: A quick look at the numbers, then I proceed. NFT market cap evolution of 2017-2020, according to data from Cointelegraph shows a steady tremendous rise. From $30,975,025 in 2017 shooting with a +482% increase to $190,219,479 in 2018, witnessing a +17% rise to $210,558,198 in 2019, came to a 2020 forecast of +50% adding to $315,712,346.
CoinGecko later reveals a $550 million market capitalization exceeding the forecast for 2020. I thought a growth value worth over $200 million in the space of two years is explosive and fascinating.
While the controversies grew, NFT sales also expanded. By the first week of September 2020, there has been an increase with sales closing up to nearly $1 million.
Individuals, big businesses and global companies, and brands like Nike, Samsung, Louis Vuitton, and even the NBA have jumped on the NFT industry. This move is a major statement in the adoption of NFTs. As newcomers embrace NFTs through products and services, they already have a strong connection and loyalty.
What is NFT Compared to Other Cryptocurrencies in the Market Space?
Ryan Hoggan: Again, we need to understand the volume of economic activities and exchange of values that NFTs have facilitated. There are backend companies that feed NFT, as a matter of structure. Take, for example, Dapper Labs, the owners of Cryptokitties, one of the first NFT products.
Dapper Labs had a goal of introducing a billion people to the blockchain. This informed the creation of its etherum based game—Cryptokitties. Results are positive, as there have been increased thousands of users of blockchain who are also opened to the world of NFTs.
Unlike Bitcoin and other fungible cryptocurrencies, NFTs does not suffer limitation in terms of the market place. Buyers and sellers of NFT can also connect on platforms as OpenSea, Decentraland’s LAND.
NFT Explosive Growth: Is It Sustainable?
Ryan Hoggan: NFT is going to explode for a number of reasons—Originality or authenticity of products, backed by smart data coded contracts, leaving a unique product. There is a clampdown on counterfeiting or faking. Buyers surely get the exact value.
The nobility of ownership—NFTs are only transferable by the owners who are in possession of the smart contract. Easily transferable—the peer-to-peer interaction, dismantling of intermediaries and third parties, makes business cool. Lastly, NFT arts have provenance in-built.
NFT And The Future of the Non Fungible Token?
Ryan: NFTs are only gradually expanding from collectibles, art, gaming etc. The explosion would hit differently when we think of what happens with sports, fashion, and other everyday valued items, including NFT securitized tweet.
Despite the lower levels of education on NFTs like other Blockchains. Nonetheless, I am convinced of the prospects, looking at the current sales track so far. The NFT space needs us to watch out for a crazy explosion in investment sales.
What Are Your Last Words to New Investors?
Ryan: As a business executive, I always encourage new investors to get enough education and mastery of any field they are venturing into, including the risks. Never make your conclusion on the basis of perception. However, do not be intimidated.