Alun Evans, co-founder and CEO of Freeverse, the business behind the digital collectibles at MetaBeat, stated that Freeverse seeks to reform speculation in the field of speculating value of NFTs during a fireside discussion with Lewis Ward, research director of gaming and esports at IDC. NFTs are well known, and some people have opinions on them. Many highly regarded them, and some people are very bullish on them. However, some people might believe they aren’t all that great. I agree that NFTs are purely based on conjecture. In the real world, people amass things: credit cards, guitars, stamps, and expensive video games. However, they are merely collectibles. Where, then, is their true value?

Cryptocurrencies, NFTs, and other digital collectibles have become important due to the metaverse hype. However, important discussions concerning ownership are required in the metaverse, particularly about digital collectibles and their true value. 

He makes a valid point. NFTs, the metaverse’s symbol of digital ownership, have suffered due to the decline in rumors. Nonfungible.com, an analytics tool, emphasizes the market decline during the previous two quarters. A dramatic 25% decline in USD trading was noted between Q1 and Q2 2022, with a global volume of around $8 billion in Q2 2022, according to the report.

 

How will the value of NFTs rise beyond speculation

Although some people reject the idea of NFTs, Evans sees a parallel in the real world. “When compared to the magnitude of the global economy, the collectible industry is a relatively minor component, and our vision for Freeverse asks, “Can we make digital ownership in a way that is more than just collectibles? ” In this approach, the tokens’ actual worth is determined by their value to other people rather than just speculating on their rarity.

Evans claims that when consumers purchase NFTs, they frequently acquire a token(NFT) and a private URL that leads to a private server which adds to the value of NFTs. But the issue, he claimed, is that it’s a website, and all of the NFT-related stuff is located on that private server, which is vulnerable to hacking or being pulled down. “Yes, it can be adjusted, but there’s also a chance that the business will overlook its AWS bill. The content could therefore vanish tomorrow; in such case, what use would it have then? It is nothing, he continued.

Freeverse, established in Barcelona, Spain, seeks to alter the perception of NFT valuation. The company has created a “fraud-proof layer-2-based technology” for major blockchain networks like Ethereum, Polkadot, and TRON. Evans pointed out that Freeverse makes it simple for third-party apps to use its technology and allows trade in fiat currencies like the US dollar without using a cryptocurrency exchange.

Also Read: Is It Possible To Define “NFT Value” Correctly?

Improving the value of NFTs

Evans stated that the Freeverse tokens are non-fungible but noted that those characteristics might change and evolve depending on how the token is utilized and what its owner does with it. As a result, how a token is used will determine how much other people are willing to pay for it.

“For instance, since you received a free token, it technically has no value at first, but it can level up based on how it is applied. Because there is no artificial scarcity, the value someone will pay for that token depends entirely on what the owner has done with it.

Evans pointed out that a game that Freeverse assisted in creating for the American market is a prime illustration of how NFTs may develop, appreciate, and degrade. It links players’ physical condition to their training schedule, which impacts their trade worth. Buying, selling, and trading the player’s avatar is possible when its value rises due to training.

“The players are traded with other users worldwide for real money, including dollars, euros, and pounds sterling. Due to your enjoyment of the game, retention appears all of a sudden. You’re saying, “I’m going to lose money or, at the very least, stand to lose money if I don’t come back and train my guys every day.” Therefore, you can encourage gamers to stay longer by including more gameplay, according to Evans.

Companies and corporations who want to maintain interest in their NFT-facing games may see improvement thanks to this developing asset class. As the metaverse matures, it has the potential to transform the game completely. The state of every asset at every point in time is certifiable on-chain, not via external links to private servers that might arbitrarily corrupt this agreement, according to Evans, who added Freeverse overcomes this critical issue of typical NFTs in each case with living assets.