NFTs: A Reputation Investment
Yat Siu, chairman of Animoca Brands, envisions a brighter future for non-fungible tokens (NFTs), predicting they will surpass their 2021 popularity. Speaking at the Bitcoin MENA event in Abu Dhabi, Siu described NFTs as more than digital assets—they are investments in one’s reputation.
During the NFT market’s peak in 2021, monthly volumes ranged from $1 billion to $5 billion, peaking at $6 billion in January 2022, according to CryptoSlam. Although sales have since declined, Siu remains optimistic about the space’s potential.
Failures Are Part of the Cycle
While notable NFT projects like Nike’s RTFKT and Kraken’s NFT marketplace recently shut down, Siu views such setbacks as a natural business cycle. “Some projects will work, and some will fail,” he said, likening the NFT market to any other industry where success and failure coexist.
He emphasized that these challenges don’t define the broader NFT space and instead highlight its evolving nature.
NFTs as Modern Status Symbols
Siu compared NFTs to luxury goods, describing them as status symbols and investments in cultural and symbolic capital. “When people make money, they often spend it on reputation-based investments, such as a Picasso painting or designer items,” he explained.
NFT collections like Bored Apes, Pudgy Penguins, and CryptoPunks have emerged as digital representations of such status investments, serving as both personal identifiers and gateways to unique communities.
Why NFTs Will Make a Comeback
Siu believes NFTs will continue to grow in prominence as people increasingly recognize their dual role as digital assets and status markers. By improving reputation, NFTs provide unique opportunities for their holders in a world where symbolic capital matters as much as financial capital.
