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This article is the final installment of a three-part series featuring an interview with William Quigley, a prominent cryptocurrency and blockchain investor, and co-founder of WAX and Tether. The interview was conducted by Selva Ozelli exclusively for crypto.news. The first part discussed the prison sentences of Sam Bankman-Fried and Changpeng Zhao, while the second part focused on the relationship between cryptocurrency and banking. In this third part, we delve into the future of NFTs.
William Quigley co-founded Worldwide Asset eXchange (WAX), which is known as the top web3 gaming platform. WAX was created to cater to the needs of blockchain gamers and NFT collectors. Initially built on the Ethereum blockchain, WAX eventually transitioned to its own blockchain and wallet due to high gas fees and slow transactions. The WAX blockchain boasts the largest NFT ecosystem, with over 250 million NFT assets and more than 30,000 dApps. It processes over 23 million transactions daily for 15 million users, making it a secure, fast, and eco-friendly platform.
Despite the recent market downturn where many NFTs lost value, the future of NFTs seems promising. A 2023 report by dappGambl revealed that the NFT market is projected to reach $217.07 billion by 2032, with significant growth expected in utility NFTs, collectible NFTs, and web3 gaming NFTs.
Art NFTs have been a major disruptor in the art market, with notable auction houses like Christie’s showcasing digital art. The future of art NFTs looks bright, especially with established art businesses like Christie’s embracing this new form of art.
Taxation on collectible NFT gains at a 28% rate may impact investments in this sector, but the overall collectibles market is expected to grow significantly in the coming years. The IRS’s draft 1099-DA form aims to regulate digital assets like NFTs, which could have implications for the market.
Recent SEC enforcement actions targeting NFT projects as securities highlight the need for careful consideration of legal compliance in the NFT space. Projects like Impact Theory and Stoner Cats faced regulatory scrutiny for offering NFTs as securities.
The potential classification of Ethereum’s ETH as a security by the SEC could impact the NFT market, given that most NFT projects are built on the Ethereum blockchain. The regulatory landscape in the NFT space is evolving, and compliance with securities laws is crucial for NFT projects to thrive.
In conclusion, the future of NFTs holds great potential, but regulatory challenges and market dynamics must be navigated carefully to ensure sustainable growth in this innovative sector.