Kent Lewis, the President of Anvil Media has voiced his opinion on the ongoing NFT frenzy. According to the media agency boss, although the potentials of the budding sector are enormous, they’ll most likely be underutilized.
The NFT industry has attracted investment from a lot of big-money players in the last few months, with investors splashing hundreds of thousands on digital collectibles. To a large extent, individuals are simply milking the new cash cow by tokenizing digital art and in some cases, real-life assets. Twitter’s CEO Jack Dorsey, for instance, recently sold the first-ever tweet for a whopping $2.9 million.
Beyond digital art and collectibles, virtually any item can be tokenized, including real estate. Lewis arguably made his recent comments with this in mind. He said:
While blockchain and cryptocurrency offer unique opportunities for brands to create and monetize (primarily digital) assets, I believe NFTs as they are currently envisioned, are the next evolution of overbuilt and underutilized platforms.
To support his theory, he referenced to Second Life, an online virtual world that was launched in 2003. But nearly two decades later, the once-trendy virtual world is struggling to get by. Lewis explained:
NFTs have tremendous potential, but ultimately may not be properly understood or utilized by a vast majority of brands... It provides brands an opportunity to promote and engage fans, while also tracking and monetizing real-world products that can't be counterfeited.
Lewis is right to a large extent. The NFT industry is still relatively new and its trajectory over the next 5-10 years remains uncertain.