When most people think of non-fungible tokens , they immediately look to digital artwork and sometimes music or videos. In this kind of instance, NFTs represent the original of something digital. Artwork can be replicated over and over, especially in the digital world. However, when someone owns the NFT of a particular piece of digital artwork, it means they own the original before it was copied a bunch of times. An attendee uses a virtual reality (VR) headset at the Metaverse Summit booth at the Paris NFT Day … [+] © 2022 Bloomberg Finance LP Unfortunately, this explanation has stuck with many investors, which means they aren’t seeing the real opportunities presented by NFTs. They are about much more than a piece of digital artwork or music or even some kind of other asset purchased in a metaverse like the Sandbox.
The evolution of NFTs is already pushing beyond this boundary. In fact, you could interact with NFTs at some point because of their ever-increasing utility. According to 35-year asset management veteran Matteo Dante Perruccio of Wave Financial , an SEC-regulated digital asset manager, NFTs are evolving in three stages. Launching Wave Financial’s NFT fund
Perruccio believes Wave Financial’s NFT fund was the first in the world, although there is now a handful of others. He pointed out that the NFT space is complicated in terms of adding value. The universe of people who have the knowledge required to invest in NFTs in a non-speculative nature is very small.
One of Wave’s co-founders, serial entrepreneur and crypto enthusiast Les Borsai, came from the music industry, so he had a unique perspective on the digital asset ecosystem. Perruccio says that he was one of the early adopters of NFTs, and he saw their initial value due to his affinity for art and music.
Wave Financial was able to build a team for its NFT fund from his connections. Also among Wave’s team are Circle Hackathon winner Aric Chan and John Caldwell, described by Perruccio as “one of the world’s most experienced people in NFTs and NFT trading”. He adds that their ability to put together a team of NFT experts for their fund was “pretty serendipitous.”
“We’ve always had this thing of merging the traditional risk management ethos with digital asset management,” Perruccio says in an interview. “We never thought about getting into it haphazardly. We bring this community-based artisanal investment opportunity to traditional and non-traditional investors in the fund structure that’s more familiar to traditional investors.” NFT evolution similar to the evolution of the internet
Perruccio compares the evolution of NFTs to that of the internet, in that it’s evolving rapidly with new use cases appearing. He noted that we’re all using the internet and transacting over it now, whether we like it or not. In the early days of Internet 1.0, many people said they weren’t going to use it to transact and interact, but it turned out to be here to stay.
He also explained that you have to understand where the evolution of this asset class is going before you can invest intelligently in the space. Otherwise, you’re just speculating. While NFTs have many different uses, the press is currently focused on the use case for music and art. Matteo notes that NFTs got a lot of press around allowing for the ownership of digital data like songs and art.
However, Perruccio adds that NFTs are a lot more than digital ownership of art and music. He highlighted financial uses like for mortgages, use cases in insurance, and derivatives. NFTs offer a transactional record of ownership. NFTs also have use cases in e-gaming and the metaverse, which he described as the “play-to-earn world as opposed to the old pay-to-play model.”
“People don’t pay to play the game,” Perruccio explains. “Some play and earn tokens that are NFTs that allow them to purchase in the ecosystem and reward themselves and acquire things in the metaverse.” Three stages of evolution in NFTs
Perruccio classifies these use cases into three steps of evolution for NFTs.
“To give people a broad understanding of what the universe comprises of, the 1.0 is what I refer to as the collectible. Artists and all that,” he explained. “The 2.0 is the metaverse. How do NFTs interact with the explosion of the metaverse as it evolves? And lastly, the 3.0, which is DeFi, is using NFTs as a financial instrument i.e., collateral.”
The third stage of evolution is cutting-edge. Owners can use NFTs as collateral or stake them to create yield. He also […]
source Manager Of World’s First NFT Fund Talks NFT Evolution And The Future Of Crypto Assets
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