Feb 21, 2023
Pal Predicts NFTs to Outperform Ether in Crypto Boom Cycles
Real Vision CEO and co-founder Raoul Pal believes nonfungible tokens (NFTs) have the potential to act similar to “high-end property” in the traditional economy, outperforming Ether (ETH) during crypto market boom cycles.
In a recent YouTube video, the former JPMorgan executive explained his bullish outlook on NFTs, delving into their key use cases, underlying tech, and potential performance relative to Ether.
Pal said that, just like “high-end property” often outperforms the market when the “economy recovers,” the same could be true of certain NFTs during crypto boom cycles. He referred to CryptoPunks and the Bored Ape Yacht Club (BAYC) as status symbols in the crypto community, much like owning a luxury house, car, or item from a famous brand that offers access to exclusive clubs or “mini network-states.”
He said that NFTs serve as a “way of owning property in the ETH economy,” adding: “Humans are ridiculous and we love to socially signal stuff.”
Pal noted that he started to “understand the power of what NFTs are and what they can do” in 2022, such as being able to transfer “value” via blockchains and automated smart contracts. He also highlighted their uses in the resolution of contracts, claiming that blockchain-based ledgers can offer verifiable transparency on what has been agreed between people, while smart contracts can essentially do away with unnecessary third parties.
The former hedge fund manager said he has allocated roughly 10% of his ETH holdings into “premium NFTs” such as CryptoPunks and BAYC NFT. He suggested that such collections offer more upside potential than downside risk, as they have managed to sustain a decent level of value during the bear market. He also believes the price of ETH is likely to increase moving forward.
Pal’s bullish outlook on NFTs has given rise to a new wave of NFT promotion and marketing, with many web3 agencies and NFT marketing agencies offering services to help creators and businesses to promote and sell their NFTs. Some of the most popular methods of NFT promotion and marketing include using Twitter, creating promotional videos, and creating unique NFT experiences.
For those looking to get into the NFT space, Pal suggests doing your research and investing in premium NFTs that have a proven track record of success. He also recommends staying up to date on all the latest developments in the space and keeping an eye out for new opportunities.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
