Visa & More Institutions Taking Part In NFT As Crypto Becomes ‘Good Sign’ For Retail Investors
Currently, the increasing number of institutional investors in the blockchain and crypto industry is inevitable. NFTs have attracted their attention since their introduction and they quickly became a cultural trend in the cryptocurrency sphere this year.
Without a doubt, institutions are now following the steps of many digital investors which mostly consist of millennials and generation X.
For them, NFTs were responsible for opening up new possibilities in art curation and circulation, as well as being a way to receive fascinating endorsements from popular figures.
Visa, Nike, Sony, and Disney are just a few of the major companies that are setting the standard for how mainstream players can capitalize on this next-generation technology.
NFT Growth Is Expected To Mirror DeFi Achievement
It is believed that the NFT market will develop in a similar manner to decentralized finance (DeFi) in 2020, with both groups of millennials and generation X driving initial growth.
The meteoric rise of DeFi will also continue as more people realize that it is better to invest their money in this space rather than in a bank deposit that can barely keep up with inflation.
As a profound financial institution itself, Visa’s recent purchase of a Cryptopunk NFT may also be seen as a “sign” that will entice other institutional investors who may have previously regarded digital assets as speculative.
NFTs In Creating Organizational Cultural Shift
Emil Angervall, CEO and co-founder of Corite, a platform that allows fans to invest in artists, views NFTs as a new cultural use case as a decentralized way to publish and earn money from music rights.
He believes that NFTs have the potential to be a game-changer for the whole music industry, as the technology enables decentralized methods of financing music projects.
As more institutional investors become aware of the potential, fundamental changes in the music and creative industries will accelerate. He stressed how NFTs could potentially become as important to Generation Z as music videos were during the 1990s and 2000s.
Looking Forward To The Far Future
Real-world use cases will be crucial for NFTs to grow after the initial fad passes.
The use of NFTs to represent patents is one such application that has the potential to boost the future of NFTs because it has the untapped potential to be a trendsetter in the IP industry, by providing transparency and liquidity that would otherwise be held on a company’s balance sheet.
Opacity in ownership matters and a lack of standardised asset management and evaluation have traditionally limited IP transactions, with £1 trillion in intellectual property never transacted.
The transparency provided by NFT assisted by blockchain technology will eventually attract institutional players interested in entering the field.
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