By
Chimamanda U. Martha
April 22nd, 2024
Cuy Sheffield says that a ‘whole new class’ of people are entering the crypto market because of NFTs.
According to the head of crypto at Visa Inc (NYSE: V), more people are entering the crypto space because of non-fungible tokens (NFTs). Cuy Sheffield says in addition to investing in tokens such as Bitcoin, and Ether, the NFT craze has opened the market up to many more people. “Crypto is becoming cultural, it’s becoming cool,” he said, referring to the unique and interactive digital assets of NFTs.
NFTs are essentially digital collectors’ items on a blockchain and can range from music to digital artworks. Furthermore, since a blockchain or digital ledger records ownership, duplication is impossible. The uniqueness of the NFT, in addition to bragging rights from ownership and potential resale value, is what makes them so appealing.
NFTs can sell anywhere from a few thousand dollars to as high as millions of dollars in some cases. Some recent prominent NFTs are CrytoPunks and Bored Apes Yacht Club, which are currently enjoying massive success with celebrities and the general market. Furthermore, some sports organizations like the NBA have NFT collaborations with blockchain game creators like Dapper Labs. Last but not least, even celebrities themselves like Katy Perry, Doja Cat, Jay Z, and Snoop Dogg are creating their own NFTs.
According to the Visa crypto boss, people are “setting up crypto wallets in waves” to accommodate these tokens. He states that the function of crypto wallets is changing. It has gone from being a secure place for storing digital assets to an interactive hub for media. This also means that younger people are getting in as well. “It used to be that if you were investing in crypto, you were kind of weird,” explains Sheffield.
Sheffield also stated that people are excited by the prospect of minting their own NFTs, or at least supporting other creators.
Recent Rise of Meme Coins Is Also An Influencing Factor for Investing in Crypto
In addition to NFTs, meme tokens such as Dogecoin and Shiba Inu are also taking the crypto industry by storm. Both exploded in popularity earlier this year, and saw investors realize huge gains in short periods. Furthermore, the co-founder of Coinhako, Yusho Liu, mentioned vast demand for meme tokens in Singapore. For instance, Coinhako, a local Singaporean crypto exchange, has received an influx of queries about Shiba Inu. Customers are eager to know when the platform will begin listing the canine-themed meme coin. However, according to Liu, Coinhako has no intentions of doing that anytime soon.
Kevin Lim, a director at Singapore’s state investor Temasek, says that speculation is another reason for the crypto market growth. The desire to invest and make “meaningful money” is inducing people to venture into the world of digital currencies. Lim suggests that as the crypto space becomes saturated with speculative investing, people’s awareness of crypto assets would increase in the long term. This, in turn, would make these assets more mainstream.