At the time of the collapse of FTX, the industry expressed its confidence in the NFT field

Nov 24,2022
At the time of the collapse of FTX, the industry expressed its confidence in the NFT field

Before the collapse of FTX, the irreplaceable token (NFT) collection had felt the impact of the encryption winter, and the transaction volume decreased by 98%. With the collapse of FTX, this once booming field seems to have been nailed to the last nail. However, industry executives are optimistic about the recovery in this area.

Due to the liquidity crisis, a large number of users' funds were stranded in the FTX exchange, and users tried to withdraw their funds circuitously. It is said that one of the ways to withdraw the balance is to purchase non-financial assets in the Bahamas. Many community members criticized this method because it bypassed the bankruptcy law, and even ridiculed the practicality of NFT in this process, portraying the negative image of NFT.

However, Oscar Franklin Tan, an executive of Jinn Company on NFT platform, believes that this is not a fair summary. In an interview, he said that although NFT was used, other items could also be used. This has nothing to do with NFT technology, but more to do with vulnerabilities of Bahamian users.

Although affected by the FTX effect and bear market, this executive is also optimistic about the survival of NFT. He emphasized that the field should pay renewed attention to how NFT can prove the acceptance of digital ownership, the new model of content creators and the funding of content creation. He explained: "It is undeniable that there is a lot of hype and excessive prosperity in some models, but all new technologies are the same. The NFT field will certainly stabilize and consolidate around the most powerful community, and then we will see the second generation of more intelligent and sustainable NFT model."

The executive stressed that the projects to be recovered should pay more attention to public utilities and building their communities. Short term speculation and unrealistic road maps must be avoided. On the contrary, they should have long-term sustainable value.

All kinds of players in the NFT field echoed this sentiment. Jamie Thomson, CEO of Vulcan Forged, NFT game studio, commented that NFT games with practicality in mature markets will surely survive. Thomson said that NFT based on speculation and bragging rights is different. As users wait for a better market, these types of NFT will "suffer more losses due to more frugal hands".

Thomson further said: "Less speculation, more coercive effects. Like tokens, if NFT is essential for the project's functions or the existence of users, then it is not necessary to consider price differences. In essence, a game project can obtain certain functions and additional value."

At the same time, NFT artist Zhang Kefan Schultz believes that the era of NFT without practicality is disappearing. This is why we see more projects with more use cases and purposes. In order to survive, the field must go beyond the "memorization" of the things he describes. This means building important projects to help the whole field.

As FTX's NFT market fell into the company's implosion, Nick Ross Enthusus, founder of Ethernity, put forward suggestions on how to do better. In an interview, Enthusus said that the mode of FTX NFT platform based on centralized exchange has been closed. This model should be democratic and transparent. NFT should eventually be cross chain and interoperable, rather than closed by a gatekeeper, which is what they are working hard and keen on.

Contrary to other views, Enthusser believes that NFT projects should not focus on one thing, because different projects have different goals. However, the executive hoped to see more projects challenging this field, "rethinking the possibility of using NFTs"


After the collapse of FTX, market confidence was severely hit. However, if we weather storm brought by FTX, things will be same. It will be even better. Because from the low point of the industry led by such ungoverned behavior, the only way is to go up.