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This piece is the third installment of a series of interviews with William Quigley, a prominent investor in cryptocurrencies and blockchain technology who co-founded WAX and Tether. The interview was conducted by Selva Ozelli exclusively for crypto.news. Part One delved into the prison sentences of Sam Bankman-Fried and Changpeng Zhao, while Part Two explored the intersection of cryptocurrency and banking. In Part Three, we shift our focus to the future of NFTs.
When discussing his involvement in co-founding the Worldwide Asset eXchange (WAX), Quigley highlighted the platform’s role as the premier web3 gaming platform. Initially built on the Ethereum blockchain, WAX transitioned to its blockchain and wallet due to issues with gas fees and transaction speeds. Today, WAX boasts the largest NFT ecosystem, with over 250 million NFT assets and a thriving community of users and dApps.
Despite the recent downturn in the NFT market, Quigley remains optimistic about the sector’s future. He cited market research predicting substantial growth in the NFT industry, with a projected market size of $217.07 billion by 2032. Quigley emphasized the potential for utility NFTs, collectible NFTs, and web3 gaming NFTs to drive this growth.
The rise of NFTs in the art world has been a significant development, with major auction houses like Christie’s embracing digital art as a new collecting category. Quigley sees this trend continuing, with art NFTs likely to be integrated into the operations of global art businesses.
Taxation of collectible NFTs at a higher rate than traditional capital gains has raised concerns among investors. Quigley noted that the IRS’s decision to tax collectibles at 28% reflects the agency’s anticipation of significant growth in the NFT market.
Regulatory scrutiny of NFTs has intensified, with the SEC cracking down on projects that violate securities laws. Quigley stressed the importance of complying with regulations to avoid classification as securities and urged project founders to carefully consider the legal implications of their offerings.
The dominance of Ethereum in the NFT ecosystem has caught the attention of regulators, with the SEC considering potential action against Consensys for alleged violations of securities laws. Quigley acknowledged the impact of regulatory uncertainty on the NFT market but refrained from commenting further on the potential classification of ETH as a security.
In conclusion, Quigley highlighted the evolving landscape of NFTs and the need for industry stakeholders to navigate regulatory challenges while driving innovation in the space.