NFTs have shaken up the digital trading space this year, however one cryptocurrency expert is warning that 90 percent of their worth will plummet 'to little or no value over the next three to five years.' .
For those unfamiliar with the concept, non-fungible tokens, described as 'digital trading cards,' are a unique digital asset encrypted with an artist's signature and which verifies its ownership and authenticity and is permanently attached to the piece.
It allows 'original' versions of popular online content - like viral memes, sports highlights and tweets - to be sold as if they were physical pieces of art. .
NFTs allows 'original' versions of popular online content - like viral memes, sports highlights and tweets - to be sold as if they were physical pieces of art.
NFTs have quickly become the next big thing in the crypto world, with buyers being able to purchase a unique digital asset such as a sports highlight or even a tweet.
Most NFTs include some kind digital artwork, such as photos, videos, GIFs, and music.
At the moment, NFTs are most commonly sold in so-called 'drops', timed online sales by blockchain-backed marketplaces like Nifty Gateway, Opensea and Rarible. .
But the bubble is bound to burst, according to early cryptocurrency pioneer Fred Ehrsam, with the Coinbase co-founder giving NFTs three to five years before losing most if not all of their value
'I go so far as to say that 90% of NFTs produced, they probably will have little to no value in three to five years,' Ehrsam said in an interview with Bloomberg TV this week.
Ehrsam got his start trading Bitcoin back in 2010 as a foreign exchange trader at Goldman Sachs before leaving the firm in 2012 to start Coinbase with Brian Armstrong, which went public in April at a whooping $100 billion valuation, according to Observer.