What NFTs Mean for ETH
An under-appreciated part of its fundamental narrative
Originally published on Medium on April 13, 2018
Ryan Sean Adams, founder of Mythos Capital, posted a short but thought-provoking tweet storm this morning about non-fungible tokens (NFTs) and Ethereum that is worth reading:
I’ve been thinking more about the NFT opportunity lately, and I don’t think it’s getting enough attention, maybe because it’s still pretty nebulous as a concept. But I happen to agree with Ryan that (1) NFTs could become a trillion-dollar asset class, (2) Ethereum is best-positioned to win this category, and (3) NFT scaling is much closer than we think. I also like NFTs because they don’t carry much regulatory risk.
Above all else, NFT platforms need to optimize for immutability and censorship resistance. If they don’t, the digital analog of something like this isn’t possible:
Therefore, Ethereum, which makes a number of tradeoffs in favor of security, makes a lot of sense as the platform best positioned to secure valuable NFTs when you think about it.
Finally, it’s also worth considering what underpinning a huge NFT economy could mean for ETH’s perception to investors as a store of value. I happen to think it will have a profound impact, which ties in nicely to our thesis at DTC that store of value will be a fragmented category with multiple long-term winners.
Crypto Kitties are just the first application!
**
Originally published on Medium on April 13, 2018
DisclaimerAll information contained herein is for general information purposes only. It does not constitute investment advice or a recommendation or solicitation to buy or sell any investment and should not be used in the evaluation of the merits of making any investment decision. It should not be relied upon for accounting, legal or tax advice or investment recommendations. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. None of the opinions or positions provided herein are intended to be treated as legal advice or to create an attorney-client relationship. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by Variant. While taken from sources believed to be reliable, Variant has not independently verified such information. Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by Variant, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Variant (excluding investments for which the issuer has not provided permission for Variant to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://variant.fund/portfolio. Variant makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This post reflects the current opinions of the authors and is not made on behalf of Variant or its Clients and does not necessarily reflect the opinions of Variant, its General Partners, its affiliates, advisors or individuals associated with Variant. The opinions reflected herein are subject to change without being updated. All liability with respect to actions taken or not taken based on the contents of the information contained herein are hereby expressly disclaimed. The content of this post is provided "as is;" no representations are made that the content is error-free.