Kevin O’Leary, a venture capitalist and Shark Tank star, has revealed what he believes is non-fungible tokens’ greatest potential (NFTs).
Kevin O’Leary posts a video of himself posing in a photoshoot to his 896,000 Twitter followers.
O’Leary claims he’ll offer an NFT including a photo from the photoshoot as well as a video from the photoshoot to authenticate it.
“The greatest potential of NFTs is the authentication of physical assets. Think watches, jewelry and art. Here is a perfect use case…
So I’m going to cut this video of the shoot of the shoot, make it short, and incorporate it in the NFT so whoever buys the other prints is going to get the history of the making of this image, which is what I think NFTs should do. They should authenticate, but also give you the background of it.”
Billions of dollars are ready to flow into non-fungible tokens, according to O’Leary, but the sector must first overcome a few critical challenges, such as reducing the number of scams, establishing suitable compliance standards, and evaluating whether non-fungible tokens are securities.
“There are billions and billions of dollars of institutional capital that wants to go to work [into NFTs], but we have not given them the compliance infrastructure yet to be able to do that.
When you buy a stock or a bond in a pension plan for a university in Geneva, for example, the compliance department can immediately see how much you put on, whether you use leverage, the position is reported at the end of the day, the auditors can see it at any time, and the regulators have a report generated that they give every quarter, every month, every week, or every day, depending on the geography you’re in.
We have nothing like that in anything on crypto. You have to manually do it yourself. That makes regulators very nervous.”