Buyer of $ 69 million Beeple art MetaKovan on NFTs

Vignesh Sundaresan, known to the cryptocurrency community as MetaKovan, made headlines in March with his record-breaking purchase of Beeple’s “Everydays: The First 5000 Days” NFT for more than $ 69 million.

As the founder of the Metapurse NFT project and a big space spender, you’d think he’d be completely optimistic about NFTs. But Sundaresan warns that those trying to take advantage of the tokens are “taking a huge risk,” he told Bloomberg.

NFTs are “not primarily an investment … It’s even crazier than investing in crypto,” he said.

NFTs, or non-fungible tokens, are unique digital assets, including jpegs and video clips, represented by code recorded on the blockchain, a decentralized digital ledger that documents transactions. Any NFT can be bought and sold just like a physical asset, but the blockchain ensures ownership and validity can be tracked.

While the market for NFTs has boomed this year, it has recently taken a turn for the worse. The sales volume for the tokens has seemingly declined, with a drop in prices as well. (Although not everyone believes NFTs are a bubble.)

Sundaresan is a big believer in NFTs, but “I don’t think NFTs will hold the same kind of hype around high-end items forever,” he said.

“The market will be divided. There will be very few high value items and an infinite number of very low value items.”

Likewise, Mike Winkelmann, the artist known as Beeple, compared the NFT market to the dotcom bubble. Just as certain companies, such as Amazon, survived the eventual failure and others did not, Winkelmann predicts that parts of the NFT market will thrive while others will wither.

“I’m very optimistic about the technology and the space in the long run,” Winkelmann recently told CNBC Make It. “I just think people should be careful now because over there [was] hurry and it’s so new. It’s quite speculative. “

As Bloomberg noted, when Sundaresan was revealed as the eight-digit buyer of Beeple’s NFT, some speculated that this would drive up the price of his own NFT collection. But Sundaresan denied it, telling Bloomberg that his motive was “to support the artist and showcase the technology.”

“The [Beeple] piece is going to take on a life of its own, which is what makes NFTs really interesting, “Sundaresan told CNBC in March.” It might not just be a work of art, it could become a thousand other things. But I will not be selling it anytime soon. “

Sundaresan predicted that “there will be hundreds of thousands of people from around the world adopting this medium, a native digital medium to monetize art,” he said.

“There will be an economy around it.”

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