CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$27,011.00
  • ethereum
    ETH$1,888.05
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » NFTs Are the Riskiest Asset Class in the Virtual Economy, Says BNP Paribas CEO

    NFTs Are the Riskiest Asset Class in the Virtual Economy, Says BNP Paribas CEO

    Author: Mandy Williams

    Last Updated Mar 26, 2021 @ 09:15

    The CEO of French bank BNP Paribas’ sees NFTs as the riskiest digital asset class, but he also believes the sector could become a bedrock infrastructure in the virtual economy.

    The recent NFT boom has seen several individuals make so much money from digital collectibles. Everything from artworks, virtual lands to sports cards, and even tweets have now become non-fungible tokens (NFTs). 

    NFT Investments Are Like Gambling

    With this raging NFT mania, investors are worried that this might be another bubble. More recently, John Egan, the CEO of French bank L’Atelier BNP Paribas, opined that investing in NFTs is like gambling, adding that they are the riskiest asset class in the virtual economy.

    In an interview with Bloomberg, Egan noted that while most people are drawn to the NFT space because of the thrills of making so much money and gaining property rights over the digital asset, it is becoming a problem.

    Ownership Issues

    He pointed out that the issue of ownership is becoming a big problem in the NFT space since people are now stealing other people’s works and turning them into NFTs.

    “What I think we’ve seen increasingly over the past few months is people trying to register NFT-based ownership over other people’s copyrighted tweets… We’ve seen many instances of artists having their works effectively plagiarized by people minting NFTs of their work even though they weren’t the creators,” he said.

    Egan also stated that the NFT space is so risky that it could well be identified as the riskiest asset in the world of digital assets. He likened investing in NFTs to gambling in a casino where winning is based on luck.

    ADVERTISEMENT

    He said, “[NFT] is an alternative digital emerging asset. I don’t think we could find many more risky categories of assets at this point. I think it’s probably, at this stage, akin to going into the casino. You know you’re going to spend money but maybe you’re doing it for enjoyment, for the experience. If you win, you’ve got lucky and I think it’s the way we need to think about it at this point; it’s in its initial phase.”

    A Bedrock Infrastructure

    However, despite acknowledging the risks associated with NFTs, Egan is optimistic about the growth of this part of the crypto industry. 

    He added, “I do expect NFTs to be some of the bedrock economic infrastructures within the virtual economy as it emerges over the next ten years, especially as that virtual economy begins to emerge out into the real world.”

    Featured Image Courtesy of Bloomberg

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • loganpaul_cover
      American Youtuber Logan Paul Teams Up With Bondly Finance to Release NFT
    • bosslogic_cover
      OpenSea Crashes Following BossLogic NFT Drop via Ethernity
    • NFT_cover
      NFT Platform Ethernity to Launch IDO on Polkastarter
    Tags: Non-Fungible Token (NFT)
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Mandy Williams
    More posts by this author

    Mandy Williams is a full-time reporter at CryptoPotato. She joined the cryptocurrency space in early 2017 during her search for financial freedom and has remained devoted to the industry.
    Contact Mandy: Twitter

  • bitcoin
    BTC$27,011.00
  • ethereum
    ETH$1,888.05
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    The Weaknesses of Ethereum VS Modern Blockchains: Interview With Radix

    The Weaknesses of Ethereum VS Modern Blockchains: Interview With Radix

    Institutions Intend to Buy Bitcoin in Late 2023: Interview With CryptoQuant

    Institutions Intend to Buy Bitcoin in Late 2023: Interview With CryptoQuant

    Why Didn’t ETH Dump After Shanghai? Interview With Nansen

    Why Didn’t ETH Dump After Shanghai? Interview With Nansen

    What is PEPE Coin? Is This the Next Huge Memecoin?

    What is PEPE Coin? Is This the Next Huge Memecoin?

    What is the Ethereum Shanghai (Shapella) Upgrade? Everything You Need to Know

    What is the Ethereum Shanghai (Shapella) Upgrade? Everything You Need to Know

    15 Months Later, What Changed Since November 2021? Interview With Phantom Wallet CEO

    15 Months Later, What Changed Since November 2021? Interview With Phantom Wallet CEO

    Artificial Intelligence & Crypto Guide: Here Are the Top 5 AI Coins

    Artificial Intelligence & Crypto Guide: Here Are the Top 5 AI Coins

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!