Venture capitalist and star of Shark Tank Kevin O’Leary is revealing what he thinks is the biggest potential of non-fungible tokens (NFTs).
The investor shares with his 896,000 Twitter followers a video of him posing in a photoshoot.
O’Leary says he’s taking a photo from the photoshoot and selling it as an NFT, while also incorporating a video of the photoshoot inside the NFT as a way 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.”
O’Leary has previously said that billions of dollars are waiting to flow into NFTs, but that the industry needs to solve a few key obstacles first, including dealing with the amount of scams, creating proper compliance standards and determining 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.
For example, when you buy a stock or a bond in a pension plan for a university in Geneva, they immediately are able to see at the compliance department how much you put on, whether you use leverage, the position is reported at the end of the day, the auditors can see it anytime they want, and the regulators have a report generated that they give every quarter, every month or 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.”
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