Big Debate: DraftKings has launched an NFT marketplace, but is the digital asset boom merely a fad?

Yes

Fintan Costello, managing director, BonusFinder.com

The saying “we overestimate the short term and underestimate the long term” can be easily applied to the NFTs market taking place right now.

Is the current NFT boom a bubble that will burst? Absolutely, yes. Are there long-term use cases for NFTs? Absolutely, yes.

What we are seeing right now in the NFT space can easily be compared to the original dotcom boom, where the enthusiasm and expectations of a new technology is massively outpacing the reality.

The premise for an NFT is that you not only own an original piece of digital content but that you can prove it, as the ownership record is stored on the blockchain. The premise is simple, yet powerful.

Our survey of US sports fans reveals that one in five have purchased an NFT with an average spend of $600 and the most popular purchases were the NBA Top Shot (52%), digital trading cards (47%), and MLB Champions NFTs (43%).

However, when asked people did not understand the technology behind their purchases. When you get into the details of NFTs, you start to see in the vast majority of cases the following situation: the proof of ownership is stored on the blockchain but the content you have purchased is not. Instead, the blockchain stores a URL that points to whatever website your content is hosted on.

So right now, the $600 piece of content a sports fan has bought is highly reliant on the old internet way of doing things, which is a random company staying in business forever to keep their content alive.

Given that the current NFT infrastructure is built on sand, the probability of needing to use the way back machine to find a screenshot of the content they have purchased is very close to 100%.

Can these problems be fixed? Absolutely, of course they can. Are the billions of dollars spent on NFTs currently at risk? Absolutely, and the majority of owners do not even realise it yet.

No

Anna Motruk, chief financial officer, Parimatch Tech

It is far from surprising that discussions around NFTs are climbing higher up on the agenda of conferences and media bulletins. The cutting-edge approach to deal making is taking many businesses to a new level in terms of financial interactions with customers, and many are wondering whether it is a phenomenon that is here to stay or simply a fad. To me, it is clear that NFTs will play a role in our industry for a long time.

The longevity of NFTs will, first and foremost, stem from its connection with crypto assets and blockchain – two instruments that are very well integrated into the financial world already. They are not without their disadvantages, of course, however it is almost impossible to imagine our world without them.

It is helpful to view NFTs as derivatives – or instruments used to simplify transactions on the secondary market. By simplification we mean adding speed, which is paramount if you need to make a purchase or want to sell your products internationally. You cannot do that efficiently with a standard pack of agreements, corporate documents and within a banking system limited to one country.

The simplification offered by NFTs also boils down to improved accessibility to markets, as they offer all types of businesses the opportunity to trade and purchase unique goods and services, which benefits all market economies looking to remain competitive in today’s world economy.

Another important positive aspect of NFTs relates to marketing. The promotion and trading of NFTs related to your brand is a new marketing instrument that can be used to connect with your customers and wider stakeholder networks, as well as attract new ones if you can put forward a compelling offering.

A key consumer trend today is diving deeper and deeper to online – getting your hands on unique or even bespoke products trumps spending large sums of money on exclusive brands, especially for younger people. NFTs offer exactly this and as they grow in scope and popularity it will be impossible to stop them proliferating.