11-22-2022 icon

Industry showcases renewed reliance in NFT market amid FTX bankruptcy proceedings

By Lucy Adegbe

Prior to the FTX debacle, non-fungible tokens (NFT)compilations have been reported to have been influenced by the digital currency winter, with its exchange rate dropping by 98%. 

The recent FTX crisis has given it another puncture, which seems to be the end of it. Notwithstanding, prominent players in the industry appear to have positive views about its comeback.

With large sums of customers’ money withheld on FTX due to its insolvency challenges, customers have explored a bypass for getting out their funds.

A suspected means of reimbursement is purchasing NFT which is located in the Bahamas. Many of the community participants condemn this pattern as it is a diversion from insolvency rulings, also making fun of NFT benefits while portraying an antagonistic light of NFTs.

Nonetheless, Oscar Franklin Tan, an administrative of NFT protocol Enjin had noted that while NFT has been utilized, diverse methods are likely being utilized also. 

During an interview with Cointelegraph, Tan explained that customers’ move to use NFT for withdrawals is not a fault of the NFT technology but the “loophole for Bahamas users.”

Tan also emphasized his sentiment that the NFT space is likely to survive all of the bear market influences. He suggested that NFT recovery may require more attention paid to utility and community development. 

Long-term renewable benefits should be prioritized over short-term predictions, he added.

Many other parties appear to be as optimistic. The likes of developer Jonathan Schultz believe that the period of NFTs with the exception of utility is rapidly fading out. 

However, for the NFT space to thrive, it must let go of the sole focus of “memeification,” with a better focus on developing relevant projects that positively impact the industry.