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Tether’s Co-founder Claims that there is Money to be Made in NFTs for the Metaverse

Despite Tether’s success in 2021, one of the co-founders, William Quigley, believes the NFT market has a lot of room to grow.

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Non-fungible tokens (NFTs) available in metaverses, according to William Quigley, co-founder of stablecoin Tether (USDT), will have yearly sales exceeding $10 trillion. In an interview with Bloomberg earlier this week, he discussed NFTs and the metaverse.

When asked about the lush, flowering NFT fields of 2021, Quigley indicated his sights are focused on the non-fungible blockchain technology’s mass-market possibilities:

“What interests me from a consumer product sense is not one NFT selling for $1 million, but a million NFTs selling for $1 each. A brand-new digital collectibles company. That appears to have more legs and, in general, a larger market.”

Quigley has some NFT experience of his own. In addition to Tether, he founded Worldwide Asset eXchange (WAX), a proof-of-stake blockchain focused on non-fungible tokens, as well as other projects.

Tether Founder claims that NFTs can represent a $10 trillion market in the Metaverse

He estimates that annual revenue from the sale of NFTs in metaverses will be worth at least $10 trillion, telling Bloomberg that the market will be “orders of magnitude” larger than the existing marketplace for virtual products in video games:

“Virtual products are now the revenue model in video games, and it’s a $175 billion industry. The metaverse, in my opinion, should be orders of magnitude larger because it encompasses everything, not just gaming.”

Consider the metaverse as a web of intelligibly networked virtual worlds and augmented reality and the Internet of Things upgrades to real-world locations.

Facebook is developing a native metaverse that will be connected with its other products, allowing coworkers in different time zones to attend meetings and sit across from one another in a virtual city.

Apple, on the other hand, is interested in augmented reality. Tim Cook, Apple’s CEO, has worked diligently to promote the technology and its potential, claiming that it is an opportunity worth as much to the firm as the iPhone.

The Metaverse will be brimming with one-of-a-kind digital items

This metaverse of digital capacity spilling into reality and luring us into the virtual area will not be a mundane user interface with regular apps and features.

Instead, users will populate the metaverse with unique programmable currencies powered by the blockchain, according to a recent Reuters story.

Quigley states:

“It’s difficult to comprehend and emphasize the significance of what happens when it happens. I believe that NFTs will be the metaverse’s primary income model.”

Digital property rights, market facilities, and governance will not be enforced and maintained by attorneys in collusion with armed enforcers in the metaverse, as they have been in every other civilization in history.

Instead, consensual involvement in decentralized software protocols intelligently created to serve in the background as a vital utility with the broadest utility for developers to serve metaverse residents would ensure these bulwarks of civilization.

ART & COLLECTABLES

In June, the volume of Ethereum NFT trading decreased by 70%, although sales remained stable

Although there is less money in NFTs, sales haven’t really slowed down.

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Despite the negative market, there is some good news regarding NFTs.

According to Nansen data, the overall amount of Ethereum NFT trades has decreased by 55% over the past month, falling from 1.3 million ETH to roughly 584,000 ETH. In terms of US dollars, that represents a decline of about 70% from just under $2.6 billion to about $672 million.

Over the past month, Ethereum’s price has decreased by around 43%. But because “blue chip” NFT prices haven’t increased to make up for it, fewer transactions are taking place.

Bored Ape Yacht Club NFT prices are still circling about 100 ETH among the top five listed NFT collections on OpenSea, with average ETH prices having essentially remained unchanged. The exception is CryptoPunks, whose buy-in floor pricing increased by 48 percent in part as a result of Christie’s head of digital sales taking over as the Punks’ new brand lead this month.

The unique blockchain tokens that represent ownership over digital art are still being bought and sold by NFT traders; they’re just purchasing less expensive tokens and “aping” into free mints like Goblintown, which launched a wave of free-to-mint NFT collections centered around bodily waste, nihilism, and memes.

According to data from CryptoSlam, the typical sale price for an Ethereum NFT dropped from $2,463 in May to barely $703, a 71% reduction. While a result, NFTs are often more expensive to buy as the crypto bear market persists.

OpenSea reported 1.478 million NFTs were sold on its platform in May. As of Wednesday, 1.476 million NFTs have been sold in June, thus it’s entirely probable that this month will see an increase in NFT sales over May. The Otherside NFTs from Yuga Labs, which saw $561 million traded in just one day, also significantly helped May’s results.

According to Dune data, the total number of registered users who have completed at least one transaction on OpenSea’s marketplace increased by a modest 6.5 percent. With a 16 percent drop from roughly 422,000 to 354,000, the number of active traders for Ethereum NFTs has only marginally decreased.

Nansen data show that there hasn’t been much of a reduction in the number of weekly active NFT projects that are seeing revenues. Three NFT collections—the same number as last month—have seen more than 10,000 sales. Only 30% fewer collections this month—from 109 to 76—saw more than a thousand sales in a given period. Therefore, NFT designers are still making sales, especially in collections with the biggest market caps.

Consequently, traders are still making trades even though overall volume may be down 55 to 70 percent in ETH and USD, respectively. Despite the fact that they are currently buying and selling for less, it appears that NFT aficionados still have hope.

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NFT

Users’ email addresses are massively exposed due to an OpenSea data breach

The NFT marketplace stated that it has informed law enforcement of the occurrence and that an investigation is in progress.

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The largest nonfungible tokens (NFT) marketplace in the world, OpenSea, has issued a warning to users after learning that a Customer.io employee may have sent the list of OpenSea users’ email addresses to a third party while working on the platform for managing email newsletters and campaigns.

All users who have provided their email addresses to the marketplace, whether it be for the platform or its newsletter, have been impacted by the incident. OpenSea warned consumers about potential phishing attempts after the hack.

On Thursday, the NFT market reported that it had spoken to law enforcement about the incident and that a probe was ongoing.

The most recent data breach is far from the only significant attack this year on OpenSea and its subscribers. The popular NFT marketplace’s Discord server was compromised in May, which sparked a flood of phishing attacks. Numerous user wallets were in fact abused. The platform experienced one of its most severe attacks to date in January, during which a vulnerability allowed attackers to sell NFTs without authorization. The market covered losses of $1.8 million.

Customer.io rival Hubspot was breached in March, exposing users’ usernames, contact information, and email addresses on BlockFi, Swan Bitcoin, NYDIG, and Circle. Names, phone numbers, and email addresses of users of various platforms were disclosed to an unidentified entity.

Hackers may try to contact OpenSea clients by sending emails from domains that resemble OpenSea.io or OpenSea.xyz, according to a warning from OpenSea. Spam calls, texts, and emails have all increased, according to Twitter users.

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NFT

The Future of NFT Gaming Doesn’t Rely on Big Capital Expenditures

Large game publishers typically oppose your ability to trade freely. The economic model used in popular games, where players purchase in-game cash or points in order to unlock more content and improve their experience, is at existential risk from NFTs (non-fungible tokens).

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If it were possible to regulate the flow of NFTs in a closed market, this would be a different story. Interoperability will be key in the future, according to industry upstarts, and digital assets represented by NFTs will be portable from one platform to another.

Large gaming companies generate billions of dollars from microtransactions, and a key factor in their success is their ability to retain players willing to pay money for in-game items. These businesses have developed systems that entirely exclude any legitimate third-party access to certain material or digital assets because they want their player base to invest a lot of money in the game.

NFTs have the potential to be revolutionary since they open the door for broad lending of these assets in addition to allowing speculators to profit. It’s no longer necessary for a player to put a significant number of money into the game in order to fully enjoy it by enabling investors to purchase an NFT and then loan it out to someone – either for a fee or a profit-split arrangement.

How play-to-earn is implemented

A fully developed gaming ecosystem will see the emergence of two different types of stakeholders. Investors who have a sizable portfolio of in-game NFTs are less likely to play the game in exchange for a daily return of $50. Then there are gamers from all over the world, who in certain circumstances would make significantly more money than the minimum wage under a profit-sharing system for lending.

The second category, who can have less money, is more worried about the short-term volatility and low liquidity of digital assets. They are unable to take the risk of accumulating NFTs in the hopes that they will be steadily profitable and hold or increase in value.

In the gaming industry, tradeable digital assets already exist. However, the practice of putting these assets on the blockchain is expanding; this was a general trend in 2021, when NFTs earned $8.4 billion in revenue. The logical next step for this sector is video games, and since more and more of these sales are shifting to blockchain gaming, there may soon be a noticeable increase in established companies moving in-game objects, characters, and skins on-chain.

As opposed to nominally belonging to the investor or player but really being at the mercy of a centralized gaming platform that can ban the user at any time, on-chain assets are designated as unique and belonging to one true owner. It’s more decentralized and provides users a lot more room to choose their own routes, especially when it comes to lending in-game items and lowering entrance barriers.

creating the framework for play-to-earn players to borrow If NFTs result in a rapid expansion of the player base in new markets, they can be extremely advantageous for game producers. Even before one considers how digital assets might be coded to meet cross-platform use cases or be employed in metaverses, making the industry more accessible irrevocably alters the entire landscape.

The compatibility of digital resources

The idea of full cross-metaverse employment of NFTs on a single digital identity raises a host of hitherto unimagined benefits. As a result, potential value is unlocked and speculation may be brought under control in a less erratic and more stable market.

The restrictions must be adjusted and will be based on the rarity of particular assets and what you may do with them. Can they be upgraded? Can you construct on NFT land to increase its value? Should players be able to own an entire mountain, or can they only purchase plots? It will be entirely community-driven if gamers own everything, but creators should have some voice and may feel the need to impose restrictions.

It is likely that a DAO (decentralized autonomous organization) operated system, in which the entire globe is owned by members and NFT holders, is now being developed. However, it is unclear whether this will be sustainable without a rigid set of regulations.

establishing NFT financing

When you attempt to transfer an actual NFT to another user’s digital wallet, problems happen. You would want the loanee to post collateral to secure the loan because there is a danger of the loanee defaulting. This creates a capital cost that acts as a barrier to entry for a sizable number of potential players.

A preferable approach would be one in which the NFT’s utility, or “wrapped,” is the sole thing rented out. An NFT holder can put the asset in a smart contract, specify the loan terms, post it for rent on the market, and let the free market function as it should.

The wrapped NFT is a newly created copy that has the same metadata, URLs, and other characteristics as the original and can be programmed to expire after a specific date. By doing so, the human-trust layer is removed, and the remarkable security that blockchains offer is provided. In essence, this wrapped NFT is only useful and cannot be spent.

It expires, returns to the smart contract at the maturity date, and is burnt as the result of a frictionless, risk-free, and collateral-free NFT lending system. Additionally, if the loanee improves a piece of land or gives a character a lot more playtime, the original NFT might appreciate as a result of the loan.

The blockchain will be updated with these changes as a direct result of the wrapped NFT’s experience. Most NFT projects and protocols are moving in the direction of this methodology in the wake of the infamous Axie Infinity hack, which cost $600 million.

The rumor about large developers

Popular game producers will find it more difficult to avoid presenting some sort of product if current trends continue and the NFT lending sector experiences significant expansion over the following few years.

Ubisoft and Epic Games are already testing, and it’s feasible that NFTs may follow the same trajectory as the idea of cryptocurrencies in general, where everyone will eventually use elements of distributed ledger technology. The notion is that this will become too alluring for businesses to ignore, or they may employ private chains or something similar.

The play-to-earn buzz is not something that traditional gamers like, and they frequently have a point. The overall quality of the market is now relatively low, and players just play these games to earn cryptocurrency, so there isn’t much to get excited about. This has a detrimental effect because it was once hailed as the new paradigm.

The problem of people quitting a project because the value of the rewards has declined due to a token price fall is still there.

Some time may pass before those seeking a better future in NFT gaming. The profitability of large developers’ existing strategies won’t be simply abandoned in favor of a more decentralized NFT-based economy because doing so would undermine their economic model. However, seasoned creators may begin experimenting with already-existing in-game assets as NFTs, and they may profit greatly in this fashion.

Unless their bottom line is in danger or a highly lucrative opportunity arises, multibillion-dollar corporations often adapt slowly. Maybe both of these elements will be crucial in bringing about a change in how we handle digital assets.

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