Exclusive: NFT can capture $ 3 billion market share, says CEO of Binance | Finance & Finance

NFTs, or non-fungible tokens, are the craze of the crypto market in 2021. Digital art, music and even tweets are already being traded through this technology and moving millions. Changpeng Zhao, CEO of Binance (one of the largest cryptocurrency exchanges in the world), said in an interview with Tecnoblog that this new type of digital asset could capture billions in the digital rights market.

Changpeng Zhao, CEO of Binance (Image: Reproduction / Binance)

Changpeng Zhao, CEO of Binance (Image: Reproduction / Binance)

NFTs and the big boom of 2021

Kings of Leon became the first to offer an entire album as an NFT in early March. A week later, digital artist Beeple sold the most expensive non-fungible token in history, a digital work of art auctioned for $ 69.3 million. Since February, multiple markets have quickly adapted and incorporated these digital assets.

“Since the second half of 2020, the NFTs market has been growing, but the real boom came in 2021, when great artists entered the marketplaces and auctions gained popularity,” said Zhao. Showing himself to be a true enthusiast of non-fungible tokens, he predicted even last year that this technology would pump now.

“Putting it in perspective, the volume traded in NFTs in February alone has already exceeded all the movement in 2020. Data from the NonFungible website show that US $ 150 million were traded in non-fungible tokens last year,” said the CEO of Binance. Thinking that a single Beeple auction has already reached almost half that value, the month of March will be historic for the NFT market.

NFTs can change the market for “better or worse”

According to Zhao, just as bitcoin (BTC) was the cryptocurrency that changed the world by showing that a new monetary standard could exist, NTFs can also modify the way we sign digital items and expand the crypto market exponentially. “Like everything new, non-fungible tokens also share opinions and generate passions, for better or worse,” he said.

“For example, a band can auction a CD NFT that is already available on all streaming platforms and still be able to make millions of dollars because that phonographic material has sentimental value to their fans,” said Zhao. He concludes that, as demonstrated by the band Kings of Leon, this technology may eventually become standard for the music market.

Kings of Leon becomes first band to release an album as NFT (Image: Edinburgh International Film Festival / Flickr)

Kings of Leon becomes first band to release an album as NFT (Image: Edinburgh International Film Festival / Flickr)

“Can you imagine how much a Beatles fan would pay for something extremely rare for the band?” Asked the CEO of Binance, suggesting that the exclusivity of these digital assets has an astronomical appreciation potential. The same is true in digital art, since the verification of authenticity in blockchain networks guarantees each asset an aggregate collectible value that can reach tens of millions of dollars.

“For this same reason, some say that NFTs take the opposite path to democratization, since each product is unique and even worth millions, being accessible to only a small and rich portion of the population. On the other hand, the concept of extreme scarcity was also what has always valued the traditional art we know, ”said Zhao.

According to him, in the same way that a work by Picasso or Van Gogh is worth millions for its exclusivity, there is only one such painting in the world, a musical or artistic piece registered as NFT is also traded for very high prices following the same logic. “Non-fungible tokens can digitally replicate this concept thanks to technology that protects and verifies the work”.

NFTs could capture billions from other markets

“As with cryptocurrencies in general and decentralized finance (DeFi), this new market also brings a lot of potential growth.” For Zhao, NFTs have the ability to attract capital from many sectors, but mainly from digital rights.

According to Zhao, a “conservative estimate” puts this market at least in the $ 3 billion range, a figure that “could eventually be captured by the NFTs”. Since this technology allows verification of ownership and authenticity of any file, copyright problems on the internet can become a thing of the past.

The possibilities are endless. For example, it is reasonable to think about creating a system for verifying the authenticity of files in real time. Dish network operator Dish Network filed a patent in February for an anti-piracy system that uses blockchain technology to do just that. Once the file is registered on a network, software would automatically check the credentials of those who play it on the internet.

With NFTs, this can be made even simpler to perform. Rather than requiring the creation of a platform just to register files on the blockchain, as Dish Network suggests, each owner could register a non-fungible token equivalent to their production and sell it to anyone who wants to reproduce it.

Can anything be worth millions as an NFT asset?

One of the main criticisms of NFTs is the trivialization of what we call art and the absurd appreciation that the most trivial things can have can simply be exclusive. When asked about the matter, Zhao said that there is “a burden and a bonus” in this technology.

A direct example of this is the satire performed recently by Monty Python comedian John Cleese, who made an extremely simple drawing of the Brooklyn Bridge on an iPad and put it up for auction as an NFT. Even though it is explicitly a joke about the recent boom in non-fungible tokens, his piece is already worth more than $ 35,000.

In a satire, John Cleese, from Monty Python, records a drawing made on iPad as NFT (Image: Reproduction / Twitter)

In a satire, John Cleese, from Monty Python, records a drawing made on iPad as NFT (Image: Reproduction / Twitter)

For Zhao, “any form of digital product can be verified and registered as an NFT, there are sites dedicated even to selling tweets”. The CEO exemplified that he himself had his first personal experience with these tokens in the first week of March. He registered his 2009 Twitter post as one of those assets and sold it for $ 6,600, as a test of the technology.

His conclusion is that the potential of NFTs is enormous, regardless of their use. Like any technology, it can be used for a number of things and will inevitably be criticized in certain situations.

Binance to trade NFTs soon

Changpeng Zhao ends the interview by stating that Binance should soon start negotiating NFTs. “We should do something with non-fungible tokens, since there is a correlation between this technology and decentralized finance, which is something that is very stimulated by the Binance Smart Chain (BSC). But we want to first learn from those who already do something like that before we take the next step ”.

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