At TOKEN2049, TON Foundation President and CEO Max Crown, Yat Siu (Co-Founder and Chairman of Animoca Brands), Andrew Rogozov (Founder and CEO of The Open Platform), and Farokh Sarmad (President of Myriad Markets, Decrypt, Rug Radio) joined Gareth Jenkinson from Cointelegraph for a deep-dive into the ongoing evolution of the NFT ecosystem.

The panel discussed how the technology is transitioning from speculative hype to the new era that TON's ecosystem is spearheading with the implementation of NFT 2.0, built on real utility, distribution, and digital culture.

As the conversation unfolded, one thing became clear: NFTs aren't dead - they're evolving.

Are NFTs Dead?

"NFTs were never dead to begin with," said Yat. "Even at their lowest point post-FTX, NFTs were doing $150–200 million a month in sales - now it's closer to $500 - 600 million."

For context, at their peak, NFT sales reached $17.7 billion in 2021, up from $82.5 million in 2020. The boom was extremely sharp, driven by 'blue chip' collections such as Bored Ape Yacht Club and CryptoPunks. The speculative boom faded, but the underlying technology remained.

Yat compared the "NFT is dead" narrative to the old cliché of "China is dead" - a view that only makes sense to those outside looking in. "If you're not in NFTs, you think it's dead. But if you are in NFTs, it's really vibrant."

Farokh echoed Yat's sentiment: "Your NFTs might be dead. My NFTs might be dead. But NFTs themselves? Far from it. They were the single most important onboarding event in crypto history - they brought millions into Web3."

Changes in the NFT Narrative

For Farokh, the NFT story evolved alongside the broader crypto market's appetite for fast gains: "People are attracted to fast money. NFTs lost the quick pump and dump allure, but that's a good and a bad thing.

He added, "I'll never sell my CryptoPunk - it's part of who I am. NFTs created digital belonging, and that's not going away."

"When it comes to NFTs, you're never going to be able to feel like you're part of something more than you do with NFTs!"

Using the power of genuine ownership of digital assets to build communities and foster digital belonging is also central to TON Foundation's vision. By integrating TON-based NFTs directly into the messaging experience, community is becoming a native feature of the app itself.

Think NFT-gated groups, fandoms, and experiences - where ownership grants access to shared spaces, events, or channels built around common interests. Whether it's collectors, creators, or fans, Telegram becomes a hub where people can come together, not just to chat, but to forge identity and connection through shared digital ownership.

In this way, NFTs on TON go beyond art or speculation - they become the connective tissue of digital communities.

Royalty Fees and the Impact of Removing Royalty Fees

The discussion turned to one of the most topical turning points for the NFT ecosystem - creator royalty fees and the challenges of implementing them in a way that benefits everyone.

"Royalties were essential for creators to make perpetual revenue," said Max Crown. "When marketplaces like OpenSea and Magic Eden removed them to save on fees, creators lost incentive to innovate. A lot of people were upset about it."

Andrew added: "The NFT market became fragmented, and without utility or distribution networks to support creators, royalty enforcement collapsed under competition. The challenge now is to rebuild an ecosystem that respects those core attributes - and that's what we're doing on Telegram."

When NFTs first gained traction, automatic royalties were one of the technology's most celebrated promises ensuring creators received a cut every time their NFT was resold. For many artists, this was what made NFTs different from traditional art markets, as they could finally benefit from secondary market value appreciation, not just the initial sale. But, by later 2022 and into 2023, marketplaces such as Magic Eden and OpenSea started making royalties optional in response to 'royalty-free' competitors such as Blur. The result: royalty payments collapsed across most collections.

Yat contextualised the issue: "Royalties are like a tax. Nobody likes paying taxes unless they see value in return. The problem with royalties was that some companies built good stuff but many of them just used royalties as a way to extract value that they never contributed back. The solution is to align incentives - build systems where royalties fuel community growth, buybacks, and reinvestment - such as what Punk Strategy is doing. That's when the model works."

For TON's ecosystem, that solution is about improving standards with NFT 2.0. These upgrades to the NFT standard on TON ensure that creator royalties are protected by design, not dependent on centralized marketplace policies - creating long-term sustainability for artists and builders. You can learn more about NFT 2.0 here.

NFT 2.0: The Next Chapter of Tokenized Culture

So what exactly is NFT 2.0?

NFT 2.0 is the next generation of digital ownership - where usability, distribution, and real-world integration replace speculation as the driving forces of value. It's about NFTs that do something: they power experiences, communities, and digital identity.

This evolution requires infrastructure that's both accessible and powerful - and that's where TON and Telegram come in.

Telegram as an NFT Distribution Network

When asked how TON and Telegram fit into this new era of NFTs, the panelists were unanimous: distribution is everything.

"Distribution, distribution, distribution," Max said, "Our goal with NFT 2.0 was to set a standard where creators know their royalties are protected and that everyone who builds in the ecosystem is playing by the same rules."

By leveraging Telegram's 1 billion+ user base, TON's ecosystem has built one of the most powerful NFT distribution networks ever built - where digital ownership meets social interaction.

"We're the only blockchain directly linked to a global messaging app," Max continued, "That's 1 billion users - possibly 1.5 billion in the next 12 months… Once you start getting that momentum, more IPs are coming, more users are coming, and the flywheel keeps spinning."

This seamless integration allows creators to finally realise the original promise of NFTs - true artist empowerment - while users gain genuine ownership of their digital assets directly within their everyday messaging apps. It's a win-win for both sides.

Why TON & Telegram Are Perfect For NFT Culture

For Andrew, TON and Telegram is all about usability, accessibility, and ownership. "User experience has to be frictionless. On Telegram, NFTs can be accessed, owned, and displayed in seconds.

This started with usernames and anonymous phone numbers - now we've moved onto the newly-launched Gifts. Everything ties into the same ecosystem." He drew parallels to Labubu, the real-world collectible phenomenon, explaining that Telegram's collectibles like Plush Pepes tap into the same emotional appeal.

"Stickers are another great example because we use them daily," he continued. "They might be a representation of something you already own - like owning a car or a watch in real life. People like showing them off on their profiles."

Returning NFTs to Their Former Glory

So what brings about the next golden age of NFTs?

"Gaming is the biggest lever," said Yat. "Owning in-game items is the ultimate digital flex. And when those items have value, it amplifies that status. That's what Web3 brings - the ability for digital possessions to take on that extra aspect of financialisation."

For Farokh: "The era of the Bored Ape coming out and going straight to half a million floor price - that's probably behind us. I think people just want more accessibility - stickers make a load of sense in that aspect."

Through platforms like Fuse and Sticker Pack, Telegram users can now tokenize their stickers and take them on-chain. It's a new way for the Web3 Telegram community to express themselves and to showcase their digital collectibles right inside their chats.

The Future of NFTs on TON and Telegram

For Max, TON and Telegram's relationship holds unique power - "bringing fan engagement, loyalty, and a whole new spectrum for brands to capture because it was once too difficult. It used to be that you needed a wallet, a seed phrase - it was a complicated experience on-chain. Within Telegram, it's all within your app and it's abstracted away - it's as easy as sending a text. At TON Foundation, we have a good shot at making it in that regard!"

NFTs have come a long way since their explosion onto the scene in 2021. Now, as NFTs evolve into a new era of accessibility and utility, TON and Telegram are redefining what digital ownership can look like in our everyday lives.

NFTs are no longer just collectibles - they're becoming part of our digital language. As NFTs evolve from speculation to social identity, TON and Telegram are setting the standard for how ownership, expression, and culture merge into everyday life.