NFTs: Foundations of digital capitalism

In 2021, non-fungible tokens (NFTs) made a remarkable entrance with explosive price increases driven by growing hype.

Since then, the market has cooled considerably, a development welcomed by Web3 expert Yat Siu of Animoca Brands. Siu stresses that despite their current underutilization, NFTs are the building blocks of digital capitalism, an essential element for the symbiotic relationship between democracy and capitalism.

The trap and potential of NFTs

The significant price declines, such as the drop in value of the "Bored Ape Yacht Club" purchased by Justin Bieber, which dropped from $1.3 million to $60,000, are not considered negative by Siu. On the contrary, he sees it as a sign of healthy interest in the underlying technology and stresses the need for further development of the legal framework, especially in the US. Deutsche Telekom is also pushing for a more sustainable understanding of NFTs, with initiatives to raise public awareness of their value. Whether Yat Siu himself owns any NFTs is still unclear.