In a recent interview with Bloomberg, BNP Paribas CEO John Egan commented on the latest trend in crypto, taking aim at non-fungible tokens (NFTs) and their mounting popularity. In passing, Egan equated these assets to going to a casino.
Crypto assets, according to Egan, have created a market bubble, but in terms of risk, NFTs were the riskiest asset class the virtual economy has created.
If Egan is right, then this invites a lot of risk as NFTs have been some of the most successful assets, generating substantial interest and liquidity.
Egan highlighted another issue with NFTs, arguing that intellectual rights may be violated for the sake of personal gain. He noted that there has been a growing number of people trying to register “NFT-based ownership,” leading to plagiarism.
“We've seen many instances of artists having their works effectively plagiarized by people minting NFTs of their work even though they weren’t the creators”, he said.
He went on to describe NFTs as “an alternative digital emerging asset,” and said that the underlying principle was the same as visiting a casino.
“I don't think we could find many more risky categories of assets at this point. I think it's probably, at this stage, akin to going into the casino.”
He argued that people would be going into NFTs to spend money, but maybe they could still win money and if they do, they got lucky. This is how the NFT economy must be treated in its initial phase at least.
However, Egan remains optimistic about the technology's potential concluding that he “expect[s] NFTs to be some of the bedrock economic infrastructures within the virtual economy as it emerges over the next ten years, especially as that virtual economy begins to emerge out into the real world”.
If you are not too interested in NFTs, though, you can always visit a more traditional gaming platform that still runs on crypto. Some of our recommended choices include Bitcasino.io, FortuneJack and 1xBit.