Even though there are thousands of NFTs operational in the space, Vaynerchuk, of NFT Founders, said that most of the companies in the NFT space will not mature with the space.
NFT is clearly in its gold rush era with thousands of platforms navigating the space and striving to get a cut of the pie. However, a large chunk of these companies will not make it through the maturity stage of the industry. This is the view of Gary Vaynerchuk, an investor and millionaire businessman who is actively interested in the NFT space.
The Dot-Com Pattern
Vaynerchuk said this during an interview that he shared on Twitter, where he stated that he was taking a cue from the Dotcom bust of 2000, when many companies that were valued highly later had their stocks tumbling down because the initial valuation was due to the hype around the industry.
According to Vaynerchuk, this is a likely scenario that will be replayed in the NFT space. He said that most investors are not aware at the moment how to navigate or take advantage of the hype around the NFT space.
When asked how he is certain that 80-90% of NFT businesses are crumbling, Vaynerchuk said that the figure is meant to convey the overall energy of the system. Nevertheless, a follower @SLAddictNFT wrote:
“It’s Pareto or 80 20 that we see everywhere in life. In some ways Gary is actually more pessimistic in his estimates then he should be. I know why though, he’s probably had more of the NFT universe tweeted at him than the rest of us see in a lifetime.”
The Craze for NFTs
Just as 2018 could be described as the year of ICOs, 2022 may well be described as the year for the NFTs because there are many investors willing to to follow the hype, even though they have little or no understanding of where the industry is headed. This is exactly what Vaynerchuk implied when he said that most of the companies will lose value. Nevertheless, Vaynerchuk insisted that NFTs will always be a part of the ecosystem as far as the cryptosphere is concerned.
Early Days for The NFT Space
Vaynerchuk stated that these are the early days of the consumer blockchain. This is the reason why there are many people who do not understand how to properly access the industry, referring to the NFT as the consumer blockchain. Vaynerchuk said that this is the reason why the space is overrated, just as in 2001 when many Dotcom companies had their stocks grossly overrated. However, he maintained that a few of these companies (15-20 of them) will come out strong, just the way companies like Amazon survived and came out strong as one of the leaders of the Dot-com era.
How To Know The Companies That Will Succeed
Vaynerchuk said that the best way to know the companies that will come out strong from the NFT hype is by asking who the operators are. He said that anyone that watched and observed Jeff Bezos in the early 2001 would have known that he is a man that understood the Dot-com space and that he would navigate it successfully.