Binance CEO Changpeng Zhao recently expressed shock at the exponential growth in the NFT market since last year. Speaking to Fortune, the CEO stated that people may have “lost their minds” paying astronomical prices for this altcoin market.
CZ thinks this altcoin market is a bubble
Binance CEO CZ told Fortune that although he admits he is not an art collector, he is also likely to pay $69 million for a piece of digital art. He expressed some doubt. Still, the Binance CEO adds that he appreciates the positive aspects of the NFT craze, noting that it allows artists to easily monetize their work. Referring to the sale of Beeple, CZ likened this altcoin market to a potential bubble, while noting that nothing could be that valuable.
Artist Beeple, who earned $69 million with an NFT, also expressed concern that the NFT market is a bubble, comparing it to the dotcom boom of the 1990s. But like the artist dotcom collapse, he expects this altcoin market to go through a similar, rapid consolidation that will support high-quality business. On the other hand, CZ noted that the growth in the market will attract better artists and improve its overall quality.
What are the reasons why the NFT market is getting so much attention?
NFT market value increased from $95 million at the end of 2020 to $25 billion by 2021, a huge increase. In traditional finance, such a leap forward is often followed by an equally harsh consolidation, while it is not yet known whether this will be the case. Ukraine, on the other hand, has seen a huge surge in popularity in the market after opening an NFT Museum covering its conflict with Russia. As we previously reported as
Kriptokoin.com, popular NFT projects such as Bored Ape Yacht Club (BAYC) and CryptoPunks have drawn all the ire for being graphically uninspired. However, these altcoin projects are still sold in huge quantities. Much of the objection comes from having a BAYC or any other popular NFT. The NFT market has also attracted the attention of short-term traders who want to get rich quickly.
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