Raoul Pal is the CEO of Real Vision, and co-founder. He believes nonfungible tokens (NFTs), which will perform better than Ether during crypto markets boom cycles, will act in a manner similar to traditional property.
A former JPMorgan executive posted an hour-long YouTube video on February 20. The video included key usage examples for the asset class, its underlying technology, and its potential performance relative to Ether.
Pal said that, just as high-end property can outperform the market when the economy recovers, so it is with certain NFTs during crypto boom periods.
“I can take my ETH and put it in a JPEG. But why? It’s because it’s similar to high-end property. You can think of a CryptoPunk house as a high-end home in London, New York, Hong Kong or wherever else. People tend to invest more when the economy starts growing and they have more money.
“And it tends to outperform all the other markets. He added that he thinks the same will happen in the ETH economy.”
He noted that CryptoPunks’ and the Bored Ape Yacht Club’s (BAYC) major collections have become status symbols for the crypto community. These are similar to having a luxury house, car or item from a popular brand. These exclusive clubs offer access to “mini network-states”.
He suggested NFTs as a “way to own property within the crypto economy,” adding that:
“Humans have a ridiculous sense of humor and love to socially indicate stuff.”
In retrospect, the former hedge fund manager claimed that NFTs attracted his attention in 2022. He began to “understand what they are and how they can be used,” including the possibility of transferring “value” via blockchain.
He also mentioned the role of NFTs in contract resolution. He said that blockchain-based ledgers can offer verifiable information on what has been agreed among people, while smart contracts can eliminate unnecessary third parties.
“What’s most fascinating about the smart contract component of an NFT? It allows the settlement mechanism in code to be automated and resolved without needing a third-party so you don’t have the courts or the lawyers and the accountants.”
Pal stated that he had allocated approximately 10% of his ETH assets to NFTs since he became interested in them, such as CryptoPunks NFT and BAYC NFT.
He stated that such collections might have more upside than downside risk because they have managed to keep a decent amount of value through the bear market. He also believes that ETH prices will continue to rise.
“If you look at Crypto Punks or Bored Apes prices, they have remained extremely stable in ETH terms. Yes, they had a blowoff top but they came back and have traded around 65 ETH ever since. It’s also interesting that they didn’t sink further. They saw a sharp jump in June after the huge crypto crash. They have remained at 65 ETC since then. He stated that ETH was just mirroring what they do.”
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
