VILNIUS, Lithuania, Nov. 12, 2021 /PRNewswire/ — NFT – three letters that have been spinning the world of crypto, art, and finance. Only in the first half of 2021 NFT sales volume surges to $2.5 billion. From cartoons of ape or Twitter tweet, to the digitized art masterpieces, NFTs undoubtedly became not only part of the internet culture but also has the potential to become a financial instrument.
With skyrocketing NFT prices, the question arises of how to determine the price and value of the asset to ensure the maximum benefit to the investor? The NFT market, which is still developing, faces significant challenges in providing liquidity, monetizing assets, and, most importantly, evaluating the NFT.
First to implement AI
NFT related financial services are emerging in the market, like offering NFT collateralized loans; however, there is no reliable way to evaluate NFTs. Accurate evaluation is crucial to all solutions of using NFTs as collateral.
TrustNFT, a decentralized NFT loan and marketplace, is aiming to create a community where NFTs could be used safely as loan collateral. The platform is the first one in the market to implement a reliable way to evaluate NFT by using breakthrough AI technology and Big Data.
“There are such companies in the market that correct and evaluate NFT prices, but no company does that with the help of AI. There are some AI solutions to trades in crypto to just guess the future price of crypto assets, but not especially NFTs, because its price depends on rarity and current status in the market,” said Mantas Mackevicius, CTO at TrustNFT.
NFTs Evaluation Machine platform, created by the company, uses data sources not only from blockchain but also is constantly learning to define trends in the NFT market and the crypto market in general.
The founders of TrustNFT believe that empowering everyone to use NFTs as collateral and get loans will bring many benefits to the NFT collectors and investors. It will contribute by promoting instant liquidity and accurate pricing for the NFTs, portfolio variety, and new market possibilities with other DeFi applications.
The role of community
There are few NFT marketplaces where the NFT can be used as collateral to get a loan. The community’s role in those marketplaces is to evaluate NFTs by voting. The TrustNFT platform, empowered by AI technology, aims to automate this process. However, the community is not to be left entirely aside.
CTO at TrustNFT agrees that AI is a complex technology that needs a lot of data to learn and function, so the important role of the community in providing necessary data remains.
Community voting will function as a decentralized autonomous organization called DAO. The community will have the ability to vote on particular NFTs, and it can be included in data sources that the AI.
“Community will have a vote. We want to build the system together with the community, but more engagements that the community will have are about different features, do we need it, can vote. The voting is by the holders, who have more tokens, have more power in this case,” said Mackevicius.
The future of NFT
There are some fears that the NFT market is overheating. However, Mackevicius believes that it is expected that all the new technologies are met with doubts and need to be widely accepted. NFT is still fresh, but he sees new opportunities unlocked by this technology.
“I believe NFTs will come as normal digital assets in every new platform, Google and so on. Even a lot I believe in the gaming industry, in the finance industry, it has been used in banks in certain roles. So this is a matter of time,” said CTO.
Mackevicius forecasts some market fluctuations but believes another hype is waiting in a short future that could last. As the growth of the NFT market is inevitable, Co-Founder and CEO at TrustNFT, Vismantas Motiejunas, is content about the solution that TrustNFT brings and the timing of the project launch.
“Our vision is to become the biggest, the biggest in the world because I do believe that our solution with joining an AI will be unique. So my vision is to be the biggest marketplace for decentralized loans using NFT as collateral in the world,” says Motiejunas.