NXT promotions will cool down, but the concept will not disappear, MEW founder speculates
Ineffective tokens, or NXT, have gained significant traction in the crypto space in recent months, with some tokens selling for millions of dollars. Even though the current enthusiasm on NXT will eventually go down, the concept will survive, according to MyAthral Wallet, CEO and founder of Costar Hemachandra.
“NFT is currently a hot topic, but I’m sure the hype around it will die soon,” Hemachandra told Coinlegraph. “Similarly, ERC-20-based tokens were a hot topic due to ICOs in 2017, now it is not news to anyone, as people use those tokens daily.”
All non-fungal tokens are certainly unique, and therefore different in value. They cannot be replaced one-for-one with another property of their kind, as each NXT has different distinguishing features. These differences affect the rarity of each token (and sometimes their utility within an ecosystem), even if they appear superficially at first glance.
Hemachandra said, “The price of NXT is purely based on how much the interested person is willing to pay”
“If someone is really interested in NXT sold in 2021, I’m sure that person will pay any amount to buy it in 2030. So we can’t say that the cryptocurrency of 2017 is no longer valuable . I’m pretty sure some people would still like to grab some of those unique items for a higher price if the current owner is ready to sell. “
Cryptocurrencies, the first functional NXT implementation, were particularly popular in the crypto space in 2017.
The NXT scene resembles the early 2017 coin offering or ICO, according to Religion co-founder Nadav Holland. “NFTs think they are going to play out like ICOs – 6-9 months of increasingly high value and cynical sales from novice, after a multi-year crash.” Tweeted On 24 February.
Hemachandra sees great potential for the NXT niche, although he questioned the rationale behind the current market hype. He said, “Is this a position of ownership or ownership? Right now NXT has its own status of appeal.”
“NXTs are hot in the same way as Lambo are hot for bitcoin purists. I think this current version of non-fungible tokens will continue to develop in larger and wider use cases. Proof-ownership of real estate and tangible assets. Things like; wherever NXT can help carry out legal proceedings, that’s when things start to get really interesting. “