📍 Austin, TX, USA. on 9th Jun 2022 at 00:00
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A survey of 2,000 British people has revealed that one in four is planning to invest in NFTs or other tokens in 2022.
NFT hype has reached epic proportions over the past year, with Google search data showing that interest peaked in January 2022 and then tailed off slightly. In 2021, Collins Dictionary’s word of the year was NFT, reflecting the buzz around non-fungible tokens.
Big corporations are also getting involved in the NFT party, with Facebook the latest company to announce its own plans in the space.
The attention NFTs are receiving has sparked increased interest and investment appetite among the general public, judging by figures from a study conducted by Tokenise.
Mike Kessler, Tokenise founder and chief executive officer said: “Our survey pinpoints shifting attitudes towards newer digital assets. We believe that tokens are close to a critical tipping point – the ideal climate for a fully regulated exchange for security tokens to emerge.
“Crucially, this also marks the start of an exciting new era for investors who can own a piece of what they love and stand to potentially benefit financially. That’s democratizing a world – of art, wine, property – that few previously had access to.”
The survey asked respondents which investments they viewed as most risky. Almost half (41%) said Bitcoin, 27% company shares, 19% oil, 17% property, and 16% gold. Just 11% of respondents said tokens such as NFTs were the riskiest form of investment.
When asked what contributed to their decision to buy tokens, 53% of 18–24-year-olds cited the ability to invest online or through an app. Tokenise claimed this highlighted “ease of access is also important, particularly for younger investors”.
However, the study found that not everyone has climbed aboard the NFT train, with 30% of respondents reporting that they had never heard of digital assets including tokens, fractional ownership, NFTs, or cryptocurrencies.
The study found “big regional differences in knowledge and the appetite to invest in tokens” in the UK. Just under half (41%) of Londoners, 27% of those in the Northeast and 24% in the Southwest are keen to use, buy or trade a token in 2022. Just 4% in the Northwest and 5% in the East Midlands have heard of tokens or NFTs.
In a statement, Tokenise added: “Tokens are emerging as a way to increase accessibility to assets previously reserved for the wealthy few – such as property, wine and art. Further driven by low-interest rates and inflation affecting traditional investment vehicles, the time might be right for tokens to take center stage.
“Digital assets seem to be capturing the imagination of the British public, as consumers seek greater financial inclusion and control. They also increase accessibility to assets previously reserved for the wealthy few – such as wine, art and property.
“With the cost of living crisis and high inflation affecting trust in traditional investment vehicles, the survey seems to show that the time is now for tokens.”
A token is a digital asset built on a cryptocurrency’s blockchain. Tokenise runs a “Stock Exchange” that it claims is “the world’s premier regulated exchange dedicated to the trading of security tokens”.
“Tokenisation is the creation and issuance of tokens that represent a fractionalized ownership of a specified asset or income stream,” it wrote. “Each token is a digital security that provides the token holder with this fractional ownership in an instrument tradable on the Tokenise Stock Exchange.”