The NFTs and the Metaverse are in their infancy and even though we constantly hear about their growth and register record sales we believe that there are still many problems to be addressed and issues to be solved.
Without further adieu we jump to the list of the 5 groups of problems that we see as crucial for the industry to overcome in the near future.
- Buying, Storing, and Selling Physical Antiques has multiple limitations and issues
Collectors of traditional art and antiques suffer from multiple flaws of the system:
The art market is sometimes difficult and dangerous. There are many forgeries and fakes passed as originals to unsuspicious collectors. One also faces the issues of buying stolen art which could result in both losses of the asset as well as legal costs.
1.2. Compliance issues
There is complex legislation in some countries (e.g. China, Russia, Italy, etc.) that makes the import and export of art particularly difficult. For example, Ancient art cannot be exported from Italy or China. Some countries, like the US, have embargoes on importing Persian or early Italian art even from third countries. With 2025 approaching, a new EU legislation will almost entirely ban the import of Ancient Art in the union.
1.3. Security and preservation risks
Storing your precious collection comes with a variety of security and storage issues. Physical objects could be stolen, given they are subject to high insurance costs and ongoing expenses for maintenance and special storage. For example, wooden antiques and paintings need special humidity and constant temperature. Metal antiques need to be constantly preserved and kept in a dry environment. Transporting the items or display inside a house can result in damages and decrease or loss of value.
1.4. Taxation Risks and Costs
Buying art internationally comes with high packing and shipping costs as well as hefty customs charges. Many countries treat art as a fully taxable asset and make the sale or transfer of art difficult and costly.
On the other hand, galleries and auction houses have budget limitations and often could not afford to buy and hold antiques due to liquidity constraints.
- Most of the NFTs have limited or zero intrinsic value 
NFTs gain traction with the claim of a variety of features that determine their underlying value such as proof of authenticity, utility features, proof of ownership of digital or real-life assets, community access, etc. Even though there are projects that managed to fully use some of those features, the majority of projects are just scratching the surface and not showing the real potential of NFTs.
- Collectors need better indicators when buying NFTs
Most of the NFTs available on the market can be evaluated on multiple dimensions and metrics such as rarity, scarcity, utility, provenance, community supporting the project, authorship, project potential, price history, etc. Most of the above mentioned are not easily comparable, they could be manipulated and could end up being misleading for collectors. Linking irrevocably NFTs to real-world assets and immutable private metadata is one of the main challenges collectors face today.
- The Van Gogh Paradox
History has proven that even the most talented artists can live a miserable life due to a lack of marketing and sales skills. The art world, and especially the NFTs segment is primarily driven by community trends and FOMO campaigns that often push mediocre projects and creators leaving no space and demand for some of the most gifted artists.
- The Metaverse is not enough, we still need the real-world connection
Even though we place our bets on the growing Metaverse, we still believe that real-world entertainment and communication hold a significant place in human life. We know that many issues that collecting has are solvable with the NFTs and the immersive environments, but there are still experiences that can not be fully translated into the Metaverse. Our vision is that each object of significant value sooner rather than later will have its digital representation, data, and ownership secured on the blockchain.
 Eric Longo, “MCN Insights: NFTs are a scam.”, https://mcn.edu/mcn-insights-nfts-are-a-scam/.