The crypto asset industry has skyrocketed. Crypto assets were in an uproar on March 11, 2021 when a digital artwork titled Everydays, the First 5,000 Images by graphic designer Michael Beeple Joseph Winkelmann successfully sold for US $ 69 million or the equivalent of Rp. 994 billion through Christie's international famous auction house.
The sale indicates the re-heating of the NFT (Non-Fungible Token) market, which is a crypto technology like a digital certificate of authenticity that will guarantee official ownership of parties who have various virtual works such as photos, videos, animations and so on through blockchain technology.
Previously, NFTs rose to prominence after the boom in value of CryptoPunks, an art platform for the collection of various digital assets in the form of images, and CryptoKitties digital games that allow the maintenance and ownership of digital cats through Ethereum, in 2017. Now NFT is again popular in the realm of digital art with a value that is predicted to reach millions of dollars. Even though NFT is on the rise, however, a crypto asset investor must still be careful in managing his portfolio so as not to fall into and lose his investment value.
Gabriel Rey, CEO of Bitcoin trading platform Triv.co.id said that in the midst of the heat of the NFT market, buyers must keep a cool head in investing.
"As a crypto asset market player, I welcome this NFT phenomenon. Because this will increase the valuation and attention to these crypto assets. However, the problem is, the players in NFT will grow rapidly, so there is a concern that there might be parties who just piggyback on this new game and want to get a moment's advantage, "Rey said in his statement, Wednesday (31/3).
Rey's opinion is based on his analysis of the latest Google Trends data. The reason is, the current enthusiasm for NFT assets resembles the same interest in 2017 when a number of “fake crypto assets” emerged through various ICOs (Initial Coin Offerings).
At that time, the fake crypto asset issuers promised exorbitant profits. But in practice, not a few have simply disappeared and are even used as a cover for ponzi scheme crimes. Even though the NFT is on the rise, a crypto asset investor must still be careful in managing his portfolio so as not to fall into and lose his investment value.
Gabriel Rey, CEO of Bitcoin trading platform Triv.co.id said that in the midst of the heat of the NFT market, buyers must keep a cool head in investing.
"As a crypto asset market player, I welcome this NFT phenomenon. Because this will increase the valuation and attention to these crypto assets. However, the problem is, the players in NFT will grow rapidly, so there is a concern that there might be parties who just piggyback on this new game and want to get a moment's advantage, "Rey said in his statement, Wednesday (31/3).
Rey's opinion is based on his analysis of the latest Google Trends data. The reason is, the current enthusiasm for NFT assets resembles the same interest in 2017 when a number of “fake crypto assets” emerged through various ICOs (Initial Coin Offerings).
At that time, the fake crypto asset issuers promised exorbitant profits. But in practice, not a few have simply disappeared and are even used as a cover for ponzi scheme crimes. Rey said, in the current NFT market, something similar could happen. For example, how can someone guarantee that the NFT can be sold again in the future after being purchased. Then how to believe that crypto assets that are directly related to NFTs can have added value in the future.
Despite giving warnings, Rey also provides suggestions for NFT enthusiasts. "If they are still interested in collecting NFTs, investors must purchase high-quality digital art NFTs, by ensuring the track records of the artists who made them, and those who are intermediaries and curators of the digital works," he explained.
He then gave an example of Beeple's Everydays sales which he considered high quality. This is because the intermediary and curator are Christie's famous auctioneer. Moreover, Beeple is indeed well known in the community as an accomplished graphic artist and his works have a big influence. However, a lot of it happens now that it's just doodling and the maker is not well-known but instead sells well.
Therefore, Rey emphasized that investors should be careful and careful if they are still interested in collecting NFTs. "Research, research and research before deciding to invest in any crypto asset. This will at least provide a broad view of the pluses and minuses of a crypto asset before deciding to collect it, "Rey concluded.
