Industry Expresses Confidence In NFT Space Amid FTX Collapse

NFT artist Johnathan Schultz thinks the era of useless NFTs is waning, and to survive it must outgrow "memification " things.

Even before the collapse of FTX, collections of non-fungible tokens (NFTs) have already felt the impact of the crypto winter, with trading volumes down 98%. With the FTX debacle, the once booming space seems to have been hit with the final nail in its coffin. However, industry executives are optimistic about the space recovery.

With the huge amount of user funds stuck in the FTX exchange amid its liquidity crunch, users have tried backdoor ways to withdraw their money. One of the alleged methods of withdrawing balances is to purchase NFTs based in the Bahamas. Many community members have criticized the method for circumventing bankruptcy laws, even mocking the usefulness of NFTs in the process, painting a negative image of NFTs.

However, Oscar Franklin Tan, an executive of the NFT Enjin platform, believes that this is not a fair summary. Speaking to Cointelegraph, Tan said that if NFTs were used, other elements could have been used as well. "It had nothing to do with NFT and more to do with this loophole for Bahamian users," he noted.

The executive is also positive about the survival of the NFT space despite the FTX effects and the bear market. Tan emphasized that the space should refocus on how NFTs demonstrate acceptance of digital ownership, new models for content creators, and funding for content creation. He explained that:

"Granted, there was a lot of hype and over-exuberance for certain models, but that's true with all new technology. The NFT space is sure to stabilize and consolidate around the communities most stronger, and then we'll see a second generation of smarter, more durable NFT models."

Tan pointed out that to recover, NFT projects should focus more...