Truths About NFTs That May Not Be Pleasant

Since there are no reliable, consistent investments in the Non Fungible Token space, most investors will lose money when they participate in the industry, claims NFT analyst OKhotshot.
“OKHotshot,” a blockchain researcher and nonfungible token (NFT) specialist, has chosen a few “unpleasant realities” relating to the NFT market.

In a lengthy 20-part thread to his 45,000 Twitter followers on August 27, OKHotshot revealed many of the issues affecting the NFT sector, such as reckless celebrity endorsements, hacking, and the kinds of businesses that are almost always bound to fail.

As a full-time on-chain analyst with an emphasis on NFT audits and Discord security who went by the Twitter handle @NFTheder, the analyst became well-known in the industry.
One of the most disappointing “uncomfortable truths” revealed by the NFT expert is that most investors in NFTs will lose money.

OKHotshot cautioned that grabbing profits when they are available rather than “diamond handing” is the best way for investors to generate money. He also advised that when an investor hears the phrase “blue chip NFT,” they should “run away” because there are “no guaranteed steady investments in NFTs.”

All of us won’t live to see tomorrow. Almost all NFT traders experience losses.

In a recent poll, 58.3% of participants said they had lost money, while 64.3% said they had bought NFTs with the intention of making money.
The analyst claims that staying current with announcements is crucial for anyone interested in NFTs since “by the time you discover about a new project on Twitter spaces, you are late.”

Furthermore, he issued a warning, noting that planning is essential because time is more expensive than any other resource and that volume and liquidity are frequently more important metrics than floor price.

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If there are no buyers, you can’t make profits, he remarked.

Tokens usually fail to maintain a price above the mint price, and derivatives “rarely outperform the initial NFT collections,” the NFT researcher advised anyone interested in investing in a particular Non Fungible Token project early to take caution.

In March of this year, Non Fungible Token startup Pixelmon released the finalized graphic for its much anticipated project, however the quality fell far short of expectations.

Each NFT was sold for three Ether (ETH), generating around $70 million in project revenue. On the OpenSea NFT exchange, the floor price has, however, dropped to just 0.26 ETH, which is now worth roughly $370.

Phantabear, another Non Fungible Token project, too had a dramatic decrease in value after making its public debut in January for 6.36 ETH and setting records for trading volumes on OpenSea. At the time of this writing, the floor price is only 0.32 ETH ($463).

The majority of Non Fungible Token collections either create no money or generate less than they cost to produce, according to a March analysis by blockchain analytics firm Nansen.
Many of the commonly circulated “unpleasant truths” criticize influential people and public figures.

Despite what well-known influencers may state or imply through social media posts, celebrity non-fungible token ventures are well-known for being awful investments, according to OKHotshot.

He stated, “Web2 marketing is quite poor in the NFT business.
A recent investigation found that around 20 celebrities were issued letters of warning for their support of Non Fungible Tokens.

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The majority of Non Fungible Tokens, according to OKHotshot’s final justifications, have no intrinsic value. The expert warned that NFT projects without sale terms are meaningless and that downstream buyers only profit from NFT if it is expressly specified in the requirements.

“NFT projects without sale terms are promising you an off-chain asset linkable with a token ID, but nothing is defined if no terms are used, and it’s very likely that you got nothing because you can’t own a link.

Nevertheless, he claims that market speculation and hype are still driving up the cost of NFTs and advises savvy investors to “take advantage of this.”

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