18 invincible tokens about ‘inconvenient’ truths

Non-Flatable Token (NFT) Analyst and Blockchain Investigator “OKhotshot” has highlighted his selection of the 18 most “inconvenient truths” about the NFT industry.

20-section long thread On August 27th to his 45,000 followers on Twitter, OKhotshot addressed many of the issues currently plaguing the NFT industry, including irresponsible celebrity endorsements, hacking and projects that always seem to fail.

The analyst has made his name in the industry as a full-time on-chain analyst working on NFT audits and Discord security under the Twitter handle @NFTheder.

Most NFT investors lose money

One of the most disturbing “inconvenient truths” shared by NFT analysts is that most people lose money investing in NFTs.

OKhotshot warns an investor to “run away” if they hear the words “blue chip NFTs,” saying that “there are no safe, stable investments in NFTs.” He also cautioned that “giving away diamonds” is not the best way to make money, rather investors should make a profit when they can.

“Not all of us are going to make it. Most NFT traders trade at a loss.

In a previous Cointelegraph poll, 64.3% of respondents said they bought NFTs to make money, while 58.3% said they lost money on their NFT journey.

The analyst advised anyone interested in NFTs to stay on top of announcements because “by the time you hear about a new project on Twitter, it’s too late.”

He also cautioned that volume and liquidity are often more important parameters than floor price, and that time is more valuable than any other asset, so planning ahead is essential.

“If you don’t have buyers, you can’t make a profit,” he explained.

Most NFT projects have failed

The NFT analyst also cautions anyone interested in getting into a particular NFT project early on that tokens often fail to stay above their mintage value, adding that “yields rarely exceed the initial NFT batches.”

NFT project Pixelmon caused controversy in March of this year after revealing the much-anticipated finished art – the quality was found to be below expectations.

The project raised about $70 million, with each NFT minted for three Ether (ETH) each. However, the floor price on the OpenSea NFT marketplace has dropped to just 0.26 ETH, which is roughly $370 as of this writing.

Phantabear, another NFT project, was originally launched at 6.36 ETH and had record trading on OpenSea when it was released in January, but has seen a significant price drop since then, with a floor price of only 0.32 ETH ($463). Time to write.

According to a March study by blockchain analytics firm Nansen, most NFT clusters make no money or end up costing less than what they cost to create.

Celebrities and influencers have no clue

Many of the “inconvenient truths” shared are the scandals of celebrities and influencers.

OKhotshot claims that “popular NFT projects are very bad investments” despite what popular influencers may say or express through social media posts.

He also added that “web 2 trading is not very effective in the NFT market”.

Recently, Cointelegraph reported on the warning letters issued by a consumer watchdog group to nearly 20 prominent figures for their role in shilling NFTs.

RELATED: Justin Bieber, Paris Hilton Among 19 Celebrities Called to Shill NFTs

OKHotshot’s final points revolve around the idea that most NFTs have no intrinsic value. The analyst cautioned that NFT projects are worthless without sales terms and NFT benefits do not flow to downstream buyers unless specified in the terms.

“NFT projects are selling you an ID off-chain asset without a sales contract. Without a contract, nothing is revealed. You can’t own the link, so you’re not buying anything.”

That said, he believes the price of NFTs will continue to be controlled by mass and market speculation, noting that savvy investors “can use this to your advantage.”