In an interview with Bloomberg, L’Atelier BNP Paribas CEO John Egan said, “Ethereum is clearly the big winner when it comes to NFTs. So starting with Ethereum and adjacent infrastructure to Ethereum is probably a significantly safer investment at this point.” Ethereum provides an infrastructure to NFTs, according to Egan. Buying NFTs, on the other hand, at this stage is akin to gambling in a casino, said Egan.
Buying NFTs at this stage is like gambling in a casino.
Buying NFTs, on the other hand, at this stage is akin to gambling in a casino, according to L’Atelier BNP Paribas CEO. “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, the CEO expects NFTs to be the “bedrock economic infrastructure within the virtual economy” as it emerges.
US SEC warns fractionalized NFTs could be illegal.
Investors are increasingly investing millions of dollars in startups in the NFT industry, which has gained massive popularity this year as prices of popular cryptocurrencies like Bitcoin and Ether have witnessed massive growth. The US Securities & Exchange Commission (SEC) commissioner Hester Pierce warned that issuing fractionalized NFTs could be considered investment contracts under the US securities law. Although the concept of NFT is to be non-fungible, which points to the fact it would be less likely to be deemed a security, Pierce highlighted that “people are being very creative in the type of NFTs they are putting out there.”