The latest prominent name to jump in favor of the non-fungible token (NFT) sector is none other than the American computer scientist and venture capitalist Paul Graham.
VC Defends NFT Sector
In his latest tweet, Graham highlighted the viability of NFTs and noted that these tokens can be used for various purposes. He also added that dismissing the entire sector will be “inviting history to make a fool of you.” The VC asserted that even if most NFT use cases are “bogus,” he would not paint all of them with the same brush.
“Even if I were sure that most current uses of NFTs were bogus, I’d never dare to say that all possible uses were.”
This isn’t the first time Graham has come in support of the industry. In May 2021, he detailed an NFT launched by a non-profit called Noora Health. Graham mentioned earlier that even though NFTs are new territory, he was excited about its potential.
“NFTs Are A Scam” – Itch.io
Not everyone is a fan of the NFT space. Interestingly, Graham’s latest comments come at a time when Itch.io, which happens to be an open indie game marketplace, declared that non-fungible tokens are a scam.
While tweeting about its stance on the sector, the platform said people should “reevaluate their life choices” if they believe that NFTs are legitimately useful for anything except for “exploitation of creators, financial scams, and the destruction of the planet.”
Itch.io also lashed out on NFT companies and argued that they only care about generating profits and the opportunity for wealth above everything else.
Despite being one of the biggest stories of 2021, the emerging asset class has also witnessed scammers seeping in after detecting loopholes. According to the latest report by the crypto analytic company, Chainalysis, wash trading to artificially inflate the value of NFTs is rampant.
The NFT sellers reportedly mislead the asset’s real value and liquidity by being on both sides of the trade. Chainalysis also found that most NFT wash trades weren’t successful. However, the successful ones made away with immense profits. It also noted that money laundering through the purchase of NFTs is yet another cause of concern for the market participants.
Featured Image Courtesy of CNBC