Alex Salnikov, cofounder of Rarible, stated that NFTs still have a lot to do before they become mainstream.
He told Insider that they need to be more affordable and easily accessible and that companies should consider how they can appeal to consumers.
The rise in interest in digital assets has prompted celebrities and top corporates to create their own NFTs.
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According to Alex Salnikov, cofounder of Rarible, non-fungible tokens have seen a huge rise in popularity and price this year. However, they still have a long way before becoming mainstream.
Salnikov said that NFTs must become more accessible and affordable, and that companies need to consider what value they provide for consumers.
This will make it easier for people understand the market and reduce the complexity of the buying process. Buyers will need to create a cryptocurrency wallet and add funds to it in order to obtain an NFT.
Salnikov said that "it's not as seamless" as going to Amazon and purchasing something. He is also the head of product at Rarible which is one of the largest NFT marketplaces.
NFTs are digital assets that can be used to create unique content, such as audio, images, or tweets. Their ownership is recorded on blockchain ledgers.
Salnikov stated that in order to break into the mass market, the sellers of digital assets need to first determine what they can do for the average buyer.
He stated that the main part of mainstream NFTs must be explored in real-use cases that are appealing to consumers to allow them to participate in the market.
According to Salnikov, we don't know yet what these use cases might be. The majority of digital assets currently being purchased are by wealthy people who have an interest in crypto and treat NFTs like an asset class.
An NFT can only be owned by one person, making them very attractive to collectors. Others use them to store value or to establish a connection with the NFT creator or a group.
NFTs are attracting a lot of interest. According to Nonfungible.com data, 175,179 NFTs sold in the period from August 5 to August 5. This total is $510.6 millions. It is an all-time record for the amount of money spent on NFTs over that period.
When digital artist Beeple sold a NFT artwork for an unprecedented $69 million, the buzz grew. Celebrities like Katy Perry and top organisations such as US Space Force have joined the fray to sell their NFTs, further elevating their profile. NFTs are also making a splash in the sports world. The NBA's Golden State Warriors launched an NFT collection. Sotheby's and Christie's luxury auction houses have sold digital assets like CryptoPunks for millions.
Salnikov believes that these high-profile, often-expensive, one-off NFTs don't help set the stage for the asset type to become mainstream. He noted that Coca-Cola, a mass-market brand, recently launched an NFT for $500,000
Salnikov stated that "it's still not for consumers." Big businesses with intellectual property must figure out how to communicate to their target audience. What NFTs would be most beneficial to the audience and not the business?