Making a living has always drawn young people to invest. The volatility — and decentralised nature — of digital assets such as cryptocurrencies and NFTs appeals to Generation Z. However, because they are unregulated, there is minimal investor protection.
“All my buddies were talking about [cryptocurrency], so one day I just decided why not step in and see if I could make some money,” says Paxton See Tow, 20.
All he needed was his phone, and he could trade thousands of dollars’ worth of assets with a single click.
Generation Z, often known as Zoomers, are those born between the mid-1990s and the early 2000s. They grew up online, playing games and making virtual acquaintances, so the move was seamless.
Cryptocurrencies are digital currency, but a “non-fungible token” (NFT) is a method of holding an original digital image, billed as the digital equivalent of collectibles.
Trading Gamification
Many people get their first taste of digital assets through “pay-to-win” games, which reward players with NFTs and cryptocurrencies, which can subsequently be used within the game or traded for cash.
“Every child wants to make money playing games,” says YellowPanther, a 23-year-old merchant from Malaysia. “That’s my generation’s dream.”
He quit his job as a marketing executive a month after starting trading NFTs last August to trade them full time.
“The day job was exhausting — eight to nine hours a day — and the compensation was pitiful. I saw a huge possibility in the [NFT] industry and took a risk “he claims
YellowPanther currently collaborates with Resh Chandran, 29, of Singapore, who provides instruction in traditional stocks, cryptocurrency, and NFT trading.
Mr Chandran introduces investors to largely Filipino players who play on their behalf for a fee using Axie Infinity, one of the most popular “play-to-earn games.”
This growing trend of young individuals trading crypto and NFTs has only been amplified by the pandemic.
“There was an unusual level of volatility in the marketplace, so when there is volatility, there is also opportunity in the market,” explains Lily Fang, a finance professor at INSEAD.
“Young individuals were there, and trading was practically gamified. All of these elements combined to create an ideal environment for this to take off.”
Financial decision-makers
Advice is widely available on channels such as YouTube, Twitter, and Reddit for many young aspiring traders.
Brian Jung, 23, has one million YouTube subscribers, although he is regarded to be more cautious about the hazards than other crypto celebrities.
“I really have to watch what I say to my audience because the last thing I want is for people to be damaged by these types of films”.
Brian’s family immigrated from South Korea to the United States, and he believes his upbringing influences how he invests and talks about money.
“Our family has always struggled financially, so I’ve always had a frugal outlook,” he explains.
“My mother still works at the US Post Office, and my father works in a warehouse, so I know that one hour of their time is still worth a dollar. I see what that is worth, regardless of how much money I am currently earning.”
Gaining financial freedom is also what drew Jowella Lim, a 22-year-old female trader, to the crypto realm.
But, aside from the financial benefits, Jowella appreciates being at the forefront of this new technology.
She believes that as governments throughout the world strive to regulate the business, it will help legitimise crypto and NFTs.
“Regulators must finally compromise and recognise that this is a technology they cannot ignore, especially given how deeply it is embedded in our society,” she adds.
Is it addiction or passion?
Aside from financial losses, addiction is a major risk.
I asked Kelvin whether he thought he was addicted. “You can put it that way,” he says, smiling. “However, I would describe it as passion.”
About Kally 👑
Kally is a P2P auction platform for NFTs, powered by Substrate & IPFS. Our goal is to build the most interoperable and user-friendly NFTs marketplace ever, allowing artists and everyday people to unleash the true power of the virtual world.
