As Kriptokoin.com, we have given information about what NFTs are before. NFT analyst OKhotshot draws attention with his statements about NFT tokens. OKhotshot says NFT tokens are not reliable and stable investments. The analyst also warns that most investors who invest in these tokens will lose their savings. Here are the details…
“Most NFT investors will lose their savings”
OKHotshot shared 18 of the most “troubling facts” about the NFT industry with their followers. The analyst revealed many of the issues plaguing the NFT industry, including social media celebrities, hacking, and the types of projects that are almost always doomed to fail. One of the most disturbing facts shared by the analyst, who is known for his research on NFT tokens, is that most people will lose money by investing in NFTs. OKHotshot said NFTs are not reliable stable investments.
We will not all make it. Most NFT traders trade at a loss.
6. You are responsible for your own security. Understand most projects don't audit their code or have Discord security.
— OKHotshot (@NFTherder) August 27, 2022
Previously, a study was conducted on NFT tokens. 64.3 percent of the investors surveyed said they buy NFT tokens to make money. 58.3 percent of respondents claim to have lost money on NFT trips. The analyst says anyone interested in NFTs should follow the announcements. Because, according to the analyst, when a new project starts to be heard in the Twitter fields, it is actually too late. Okhotshot also says that volume and liquidity are often more important metrics than the floor price. However, he also expressed his views that time is more valuable than any asset. Therefore, it is very important to plan ahead. The analyst explains his views as follows:
If there are no buyers, you cannot make a profit.
NFT tokens often fail
The NFT analyst also warns anyone who wants to get into a particular NFT project early. Because NFT tokens usually cannot stay above the mint price. He also adds that “derivatives rarely outperform original NFT collections.” However, a March study by blockchain analytics firm Nansen made quite a splash. According to the research, most NFT collections netted no money or less than the cost of production.
NFT project Pixelmon sparked controversy in March of this year after announcing the final project for its project whose quality turned out to be far below expectations. The project has raised approximately $70 million. Each NFT has been put up for sale with a value of 3 Ethereums (ETH) each. However, the base price in the OpenSea NFT market has now dropped to only about 0.26 ETH. Another NFT project, Phantabear, initially went on sale at 6.36 ETH. It saw record trading volumes on OpenSea when it was first released in January. However, it has experienced a huge decline since then. The base price was just 0.32 ETH or $463.
Warning came for NFT tokens advertised by phenomena
OKHotshot stated that “famous NFT projects are malicious investments,” contrary to what influencers have claimed via their social media posts. He also added that “Web2 marketing is extremely ineffective in the NFT market.” However, a consumer watch group has sent warning letters to about 20 celebrities for their role in promoting NFTs. However, it was announced that the price of NFTs is hype and continues to be controlled by market speculation.
17. Celebrity NFT projects are notoriously bad investments.
— OKHotshot (@NFTherder) August 27, 2022
OKHotshot finally says that most NFTs don’t have any intrinsic value. However, he believes that the price of NFTs continues to be controlled by hype and market speculation. The analyst also warns that NFT projects without terms of sale have no value and explains:
NFT projects with no terms of sale sell you a token ID with a hyperlink to an off-chain asset. Without terms, nothing can be defined. You can’t own a bridge, so you probably didn’t buy anything.
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