ETH likely a 'significantly safer' investment than NFTs, says L'Atelier BNP Paribas CEO

advertisement

L'Atelier BNP Paribas CEO John Egan has said that ether (ETH) is likely a "significantly safer" investment than non-fungible tokens (NFTs) at this point.

That is because Ethereum provides an infrastructure to NFTs, according to Egan.

"Ethereum is clearly the big winner when it comes to NFTs," Egan told BNN Bloomberg in an interview on Thursday. "So starting with Ethereum and adjacent infrastructure to Ethereum is probably a significantly safer investment at this point."

Buying NFTs, on the other hand, at this stage is akin to gambling in a casino, according to Egan. "You know you're going to spend money, but maybe you're doing it for the enjoyment, for the experience. If you win, you've got lucky," he said.

BNP subsidiary L'Atelier identifies trends in digital and virtual domains through research and analysis. Egan said NFTs are "very much an emerging asset" and are risky at this point.

However, in the next ten years, Egan expects NFTs to be the "bedrock economic infrastructure within the virtual economy" as it emerges.

Egan also compared the current NFT boom to the 2017 initial coin offerings (ICO) mania. He said both the trends are "very similar."

"I think a vast majority of the NFT propositions currently available are wrapped up in a hype cycle and have no real value," said Egan. "That doesn't mean NFTs aren't of value. I think NFTs are an extraordinary value as an infrastructure play in the long term."

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More