18 ‘disturbing’ facts about Non-fungible tokens

In a 20-episode long thread to his 45,000 followers on Twitter on August 27, OKHotshot clarified many of the issues plaguing the Non-fungible tokens industry right now, including irresponsible celebrity endorsements, hacking, and the types of projects that are almost always doomed to fail. The analyst has made a name for himself in the industry as a full-time in-chain analyst specializing in NFT audits and Discord security, operating under the @NFTheder name on Twitter. 

Most NFT investors will lose money

Non-fungible tokens
NFTs

OKHotshot said there are no “reliably stable investments in Non-fungible tokens” if an investor hears the term “blue chip NFT” as “escape.” He also warned that “delivery of diamonds” is not the best way to make money, but rather that investors should make as much profit as possible.

“We are NOT all going to make it. Most NFT traders trade at a loss.”

Earlier, Cointelegraph reported that 64.3% of respondents claimed to have purchased NFT to make money, while 58.3% claimed to have lost money on NFT journeys. The analyst also warned that volume and liquidity are often more important criteria than the floor price, and time is more valuable than any asset, so planning ahead is crucial. “If there are no buyers, you cannot make a profit,” he explained.

6. You are responsible for your own security. Understand most projects don’t audit their code or have Discord security.

Most NFT projects fail

Non-fungible tokens project Pixelmon has sparked controversy after revealing the final artwork of its highly anticipated project in March this year – its quality came in well below expectations. The project raised approximately $70 million with each NFT minted for three Ether (ETH) each. Another NFT project, Phantabear, was initially minted for 6.36 ETH and delivered record trading volumes on OpenSea when it was first released in January.

Celebrities and influencers unaware

Many of the “disturbing facts” shared are spooky by celebrities and influencers. OKHotshot noted that “famous NFT projects are very bad investments,” despite what famous influencers claim or imply via their social media posts. He also added that “Web2 marketing is extremely ineffective in the Non-fungible tokens market.”

17. Celebrity NFT projects are notoriously bad investments.

OKHotshot’s endpoints revolve around the idea that most NFTs don’t have any real value. The analyst warned that NFT projects without terms of sale have no value and that Non-fungible tokens benefits do not reach downstream buyers unless specified in terms.

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“NFT projects without sale terms are selling you a token ID with a hyperlink to an off-chain asset. Without terms, nothing is defined. You can’t own a hyperlink so in all likelihood you bought nothing.”

That being said, he believes that  the price of NFTs continues to be controlled by hype and market speculation, though noted that savvy investors could “use this to your advantage.”

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