😸 What NFTs mean for ETH
|Spencer Noon||Apr 13, 2018|
Ryan Sean Adams, Founder of Mythos Capital, posted a short but thought-provoking tweet storm this morning about non-fungible tokens (NFTs) and Ethereum that is worth reading:
1/ NFTs will be big. Maybe $1 trillion big.
First, it’ll be game-based collectables. Skins, items, kitties. Eventually, we’ll store digital proxies of real-world assets on blockchains.
While anything can happen, I'm now betting ETH wins the NFT mkt.
2/ Why ETH?
First, ERC721 is now de-facto standard.
Second, DEX ecosystem makes NFTs liquid and tradable.
But crypto kitties crashed the network you might say. A single NFT-based game. Is scalability ETHs achilles heel?
Not for long.
3) ETH is close to NFT scaling. Like June close.
i) @loomnetwork side chains
ii) dPoS @cosmos zone
iii) Plasma cash (@loomnetwork)
iii even inherits the security of ETH w disputes settled on mainchain.
So ERC721, DEX, and scale makes ETH a superplatform for NFT.
Above all else, NFT platforms need to optimize for immutability and censorship resistance. If they don’t, the digital analog of something like this isn’t possible—
A look back at 2016's hottest trading card. This 1952 Topps Mickey Mantle, graded PSA NM-MT+ 8.5, sold for a cool $1m earlier this year. pic.twitter.com/u1FTjBHIU2December 27, 2016
Finally, it’s also worth considering what underpinning a huge NFT economy could mean for ETH’s perception to investors as a store of value. I happen to think it will have a profound impact, which ties in nicely to our thesis at DTC Capital that Store of Value will be a fragmented category with multiple long-term winners.
Feedback is always welcome - hit me up on Twitter!