How the value of NFTs can evolve beyond speculation

With all the buzz surrounding the metaverse, cryptocurrencies, NFTs, and other digital collectibles have become staples in the Web3 space. However, it is necessary to have crucial conversations about ownership in the metaverse, especially for digital collectibles and the real value they offer.

At MetaBeat 2022, a major highlight for attendees using the Decentraland virtual platform was VentureBeat badges placed randomly across the virtual landscape (badges could be collected in exchange for an exclusive NFT at MetaBeat, which could then be upgraded via social interaction.)

During a fireside chat with Lewis Ward, director of gaming and esports research at IDC, Alun Evans, co-founder and CEO of Freeverse - the company responsible for digital collectibles at MetaBeat - stated that Freeverse aims to reform speculation in the world of digital collectibles.

"A lot of people have heard of NFTs, and some people have an opinion about them. A lot of people think they're great, some people are very optimistic about them. On the other hand, some people might think they're not that good. I agree that NFTs are all based on speculation. People collect things in the real world - they collect credit cards, guitars, stamps, and coins. fancy video games. But they're nothing more than collectibles. So where's the real value in them?"

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He's right. Since speculation has died down, NFTs – the hallmark of digital property in the metaverse – have taken a hit. The analytics platform, Nonfungible.com, highlights the decline in the market over the past two quarters. He cited that “a massive decline of 25% was observed in terms of USD traded between the first and second quarters of 2022 with a worldwide volume of approximately $8 billion in the second quarter of 2022”.

While some dismiss the notion of NFT outright, Evans sees a similarity in the real world. "When you think about the size of the global economy versus the size of the collectibles economy, the collectibles economy is a very small component and our vision for Freeverse asks the question, 'can we make digital property in a way that is more than just collectibles?" In this way, the tokens themselves are valued by more than speculation as to their rarity, and in fact by their usefulness to others." /p>

According to Evans, what often happens when people buy NFTs is that they own a token, get a private URL — which points to a private server somewhere. But the problem, he said, is that it is a website and all NFT-related content exists on that private server, which can be hacked or deleted. “Yes, it can be changed; but also, the company can forget to pay its AWS bill. And so, the content could disappear tomorrow, in which case, if that happens, what is its value? It's literally nothing," he added.

Based in Barcelona, ​​Spain, Freeverse wants to change the NFT valuation narrative, having developed a "tamper-proof Layer 2-based technology" capable of being deployed on major mobile networks. blockchain - including Ethereum, Pol...