August 25, 2022
By Sharan Kaur Phillora
A new report by Juniper Research revealed that the global number of non-fungible token (NFT) transactions is likely to rise from 24 million in 2022 to 40 million by 2027, a new report said, cautioning the vendors about an unregulated environment that is home to fraudulent activities and scams.
Here’s what we know:
The report said that metaverse-linked NFTs will be the fastest-growing NFT segment over the next five years, increasing from 600,000 transactions in 2022 to 9.8 million by 2027.
Although Juniper’s report encourages consumer-facing businesses to leverage the popularity of NFTs to cater to the demands of a younger, more tech-savvy demographic, it warns that the embrace of the asset class is not without its pitfalls.
The report cautions that companies participating in the NFT space “may risk brand damage by association” due to the host of controversies and legal kerfuffles NFTs have been mired in since going mainstream. To counter this, the report recommended regulators and industry bodies join forces to hammer out standardized processes that balance consumer protections with vendors’ ability use NFTs to better engage with said consumers.
“Environmental issues were also raised as a major concern, with the current way transactions are facilitated on the blockchain creating massive energy usage,” Juniper Research says.
The report emphasizes the need for some kind of regulation in the industry. It suggests a system in which regulators work with industry bodies to reduce environmental impact and offer built-in protection for consumers.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.