Is it a good time to buy non-fungible tokens? The expert answers

As the floor prices of popular collections of non-fungible tokens (NFTs) took a deep dive along with the broader crypto market, one NFT expert believes this is a good opportunity for investors in the space.

In a Cointelegraph interview, Ahren Posthumus, CEO of NFT marketplace Momint, shared his thoughts on compelling NFT use cases, its role in contributing to climate action, and what NFT investors should focus on in the current bear market.

Posthumus believes that fractionation of larger assets could be the next big thing for NFTs. Based on the stock market as an example, the manager believes that dividing expensive assets into smaller and more affordable parts will make assets more interesting for retail investors. “This is what the stock market did to invest in companies, and it was very successful,” he said. The manager explained that:

“Perhaps the blockchain application with the greatest potential for future utility is fractional ownership of assets, sometimes called tokenization, that the general public has never had access to before.”

Apart from this, the NFT expert also highlighted that NFTs can contribute to climate action and positively influence efforts to meet environmental concerns. While NFTs are often associated with works of art, the Momint boss emphasized that they are digital certificates of authenticity. This makes it an optimal medium for carbon credits. In addition, Posthumus explained that:

“You can start NFT projects that are specially designed to raise funds for environmental initiatives. This way, you can leverage the hype of NFTs to generate funds and awareness for environmental causes.”

When asked if it is a good idea to buy NFTs during an ongoing crypto winter, the executive replied “yes” but urged investors to check the underlying value and fundamentals of the assets before investing.

Finally, with the world experiencing a recession, the executive said investing in blockchain infrastructures like Ethereum would be a safer bet. “Some blockchain applications will emerge triumphant, but many will fade into obscurity,” Posthumus said.

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In the first half of 2022, NFT investors have spent 963,227 Ether (ETH), worth around $2.7 billion, minting NFTs on the Ethereum blockchain alone, according to a report by data firm Nansen. Other blockchains such as BNB Chain (BNB) had $107 million worth of NFT coins, while Avalanche (AVAX) had $77 million.