Since the launch of non-fungible tokens, there has been an increasing interest in the creation and minting of digital assets which can be sold for cryptocurrency, bringing more participants into the crypto ecosystem.
Why Dogecoin Founder Likes NFTs
Shibetoshi Nakamoto, the pseudonymous founder of Dogecoin (DOGE), has lauded the NFTs’ efforts for bringing up new ways people can interact with the cryptocurrency market. Furthermore, according to the outspoken Dogecoin founder, before the inception of NFTs, people did not do anything positive with cryptocurrencies rather than “playing” the pump and dump game.
The pseudonymous founder noted: “Why do I like NFTs? For years and years, no one did anything with crypto other than play the pump and dump game. At least NFTs are being used for [much better purpose],”
Development of NFTs
Shibetoshi Nakamoto’s comment on why he likes NFTs is not only valid but evident as well. The establishment of non-fungible tokens has gotten the attention of a new investor class, who might have been sceptical about joining the crypto market at first due to alarming projects, especially the pump and dump scheme.
A cryptocurrency pump and dump scheme is a technique whereby project developers heavily market the token to investors using misleading information to raise its price and then sell everything for a profit, which crashes the price.
NFTs tend to be more secure and transparent, bringing more people involved in the crypto ecosystem. For example, celebrities, including musicians and athletes, have sold a variety of digital collectibles known as NFTs, raking in millions of dollars in different transactions.
Legendary rapper Snoop Dogg collaborated with Cardano-based Clay Mates to launch his digital collectibles that will give holders access to his unreleased songs.
Challenges of NFTs
However, despite the exciting opportunities associated with NFTs, the Dogecoin founder still pointed out the challenges of NFTs like stolen art and fake purchases.
“[…] Otherwise, it’s just people making and selling digital collectibles with the pointers living on blockchains. It’s a pretty simple concept and has led to many bad takes,” he concluded.
Meanwhile, the outspoken Dogecoin founder had words for famous hip hop star Madonna for lying about her non-fungible token purchase.