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NFTs Offer Cultural, Crypto Bridge out of Fiat

Non-fungible tokens (NFTs), by the nature of their technical design, are closely tied to blockchain technology and the broader crypto ecosystem.

In the early days of technology, this meant that there was a great deal of overlap between the community of people who created and collected NFTs and those interested in cryptocurrencies, which had previously been a major use case for blockchain. I meant.

Over the last few years, NFTs have been picked up by artists, gamers, marketers, and others interested in owning digital objects. However, as mainstream acceptance has grown, many actors who were previously uninterested in crypto have found themselves facing Ethereum and other related blockchains.

As Eitan Messikaco-founder and CEO of a French-Israeli crypto startup Nirostold PYMNTS in a recent interview, “NFTs were the bridge from culture to crypto.”

From this observation, NFTs have brought a variety of “cultural businesses” to the cryptocurrency market, Nilos this week (September 21). Announces $5.2 million funding roundwas founded as a platform to help businesses with crypto-based revenue streams convert their income into fiat currency.

Related: Instagram trial NFT sharing with curated creators and collectors

But they are addressing more than just the need to exchange cryptocurrencies for fiat, he said. Nilos will also help businesses with the compliance oversight and tax controls needed to deal with cryptocurrencies, as well as make incorporating NFTs into their business strategies more practical and accessible for a range of brands, artists and freelancers. You can make it easier.

See also Andreessen Horowitz Heads License Fees to Protect NFT Market

The NFT move was a catalyst for Nilos, but many companies in the ecosystem are only generating crypto income, Messika added, adding that even in the decentralized finance (DeFi) space, companies pay in fiat currency. I pointed out that I had the necessary expenses. “At some point, all these companies will have to make fiat payments and off-ramp their funds.”

Furthermore, he said: [decentralized autonomous organizations],” all need to manage both statutory and crypto finances.

Managing Crypto Income, Fiat Currency Should Be Same

Messika acknowledges that there are other ways to convert cryptocurrency to fiat, but existing solutions do not address the needs of small businesses due to their extensive onboarding process and high volume of requirements. I don’t think so.

And while “crypto-friendly banks” can handle hundreds of thousands of transaction volumes, freelancers, artists and small businesses will have to off-ramp at a different scale, he said.

Crypto trading platforms also do not meet this need, he added, saying that trying to do everything through a platform like Kraken or Coinbase makes it very difficult to track transactions.

This is where Nilos steps in to allow businesses to track their crypto earnings. As Messika explained, “The idea is to be able to consolidate different accounts and make sure you have one dashboard where you can see multiple incomes.” Make it as easy as managing your income.

Continuing the analogy that managing multiple cryptocurrencies and managing multiple fiat currencies is no exception, Messika said the goal is to be as agnostic as possible when it comes to different types of blockchains. I was.

For example, Ethereum has been heavily emphasized as it has been central to the development of the NFT space so far, but Nilos has already expanded to Polygon as it has allowed the company to scale and diversify. he said. its customer base.

learn more: Crypto Payments Remain Unchanged Despite Ethereum 2.0 Merge Hype

As for why the Ethereum ecosystem continues to thrive, Messika attributes it to the “Lindy Effect” of the Ether market.

Ultimately, he said, it all boils down to trust. Pointing to Ethereum’s established community of developers, users and miners, Messika noted the strong network effects in the way Ethereum was established, stating that it “still remains the most used and most trusted chain.” ‘ said. [there is]”

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