The NFT space is growing at an incredible pace as different digital assets in the space are being sold for millions of dollars. However, despite all of the frenzy surrounding the space, there is a feeling among some investors that the sector might just be another bubble. One of those in that school of though is the CEO of leading French bank BNP Paribas , John Egan who in a recent Bloomberg interview said that investing in NFTs is quite comparable to gambling, and there is no digital asset as risky as those of NFTs.
Besides the speculative aspect of it, the BNP Paribas chief pointed to the security issues surrounding these class of digital asset. According to him, people have been stealing digital artworks, parading it as theirs and selling it. This, he posits, is nothing more than theft. In his words,
We’ve seen many instances of artists having their works effectively plagiarized by people minting NFTs of their work even though they weren’t the creators.
BNP Paribas Boss Optimistic About Cryptocurrencies
However, despite his skepticism about NFTs, the bank chief is showing some level of optimism about the growth being made in the crypto space. In his view, NFTs are creating the bedrock infrastructure for the future growth of the industry. He believes that in the next 10-years, the virtual economy will be huge, and what is happening now will shape how it plays out.
BNP Paribas CEO idea of the direction the market is taking shape is spot on. Every boom in crypto has given rise to something even more significant. In 2017, there was the ICO boom, and while it burst, lots of valuable projects came out of it. Projects like Cardano, Chainlink, and many others came out of this boom.
Recently, the DeFi space has been expanding too. Despite the numerous hacks and setbacks, it is opening up the world to a new era of finance where people can access financial services without traditional banking, this could be the same for NFTs and the crypto industry generally.