Stacks founder Muneeb Ali appeared in the latest episode of Decrypt’s gm podcast.
He spoke about the NFT market and why some people are vocally opposed to it.
With the NFT Market is now flourishing boom of the past year, it’s not hard to find vocal skeptics and cynics on social media. Just click on an NFT related tweet from a brand, celebrity, or video game manufacturers and you’re sure to find a long line of hot takes in the answers.
Resistance to the rising value and interest in NFT collectibles and artwork has surged in recent months. And as told by Stacks founder and self-proclaimed “Bitcoin centrist” Muneeb Ali decrypt in the latest episode of the gm podcast, it’s no surprise: on the surface, some of those top-dollar nft sales for cartoon monkeys and other profile pictures seem utterly absurd.
“I think it’s one of those things where if you wanted to pick examples that look really stupid on paper,” Ali explained, “you’d be like, ‘Hey, this guy bought a monkey for $300,000 – a picture of a monkey. And I saved it to my desktop.’”
However, NFT proponents would say it’s not just about the image attached to the token. in case of an Bored Ape Yacht Club NFT, for example, is a sought-after asset that has rapidly appreciated in value since its launch just under a year ago. It’s also something of a status symbol both within the crypto industry and, increasingly, beyond “Aping” as celebrities.
And indeed some NFT proponents Encourage people to share their valuable images far and wide as their growing use and popularity could drive back the value of the tokenized original. But these right-click savers don’t own the NFT and can’t sell it. Ali said he thinks it’s “pretty brilliant” how some NFT users have responded with memes to critics.
But in addition to these possible justifications for the growing value of top NFTs, there is also an increasing trend toward utility. For example, a Bored Ape NFT serves as a membership card for a private collector community, which comes with benefits like access to exclusive events, free additional NFTs to resell, merchandise drops, and more.
It is this potential for utility and functionality that Ali sees as the greatest potential for NFTs, and why he believes tokenized assets will be used for a range of real-world applications in the future. The more silly or superficial elements of the industry could eventually give way to more serious features, such as: B. NFTs used for real estate deeds, stock certificates and other purposes.
“It’s one of those things that’s easy to make fun of and dismiss as toys,” said Ali of NFTs. “It’s easy to miss the picture. Think of Bitcoin, important as it is – it’s basically a fungible asset, right? And the category of non-fungible assets is much, much bigger because you can define anything.”
An NFT (or non-fungible token) is effectively a tokenized title deed to a Blockchain. While it’s currently mostly associated with things like digital illustrations, profile pictures, and video game merchandise, it works like a traceable receipt in an immutable database. This could offer NFTs a wide range of future uses as the technology and market mature.
Ali founded Stacks, a smart contract platform built Bitcoin. Essentially, it allows the creation of decentralized applications, DeFiProducts (the kind that enable peer-to-peer borrowing and trading)and NFTs on a platform that rolls up their transactions and pushes them to the Bitcoin blockchain.
stack has seen how a separate NFT market was created in the last few months. Despite being much smaller than the market of the leading NFT platform Ethereum, it has its fans –especially bitcoin enthusiasts who want to build on the same blockchain as the leading cryptocurrency or buy assets that ultimately have the same base layer.
Ali said the NFT infrastructure simply allows for social constructs from the physical world – like private clubs and real asset ownership – to take shape online. And it’s happening via decentralized, open-source technology and not under the control of tech giants.
“You can’t scoff at these ideas because these are human behaviors that you have observed in real life,” he said decrypt. “I think these people making fun of things aren’t clearly connecting the dots. These things are already ingrained in the way our society works, and this only unleashes the power of the internet.”