Non-fungible token (NFT) analyst and blockchain detective OKHotshot has emphasised on 18 of his picks for the most “uncomfortable truths” with regard to the NFT industry, as reported by Cointelegraph.
According to Cointelegraph, through a 20-part Twitter thread addressed to the individual’s 45,000 followers, OKHotshot focused on concerns around the NFT industry, including unaccounted celebrity endorsements, hacking, and the type of projects which are expected to fail. Reportedly, the analyst had a reputation for being a full-time on-chain analyst specialising in NFT audits and Discord security operating as @NFTheder on Twitter.
On the basis of information by Cointelegraph, OKHotshot said that majority will sustain monetary losses through NFT-based investments. The individual said that reliability doesn’t exist with regard to stable NFT investments. “We are not all going to make it. Most NFT traders trade at a loss,” OKHotshot said. Through a poll conducted by the publication, it was found that 64.3% of respondents said they bought NFTs to make, and 58.3% claimed that they made money loss on their NFT investments. The NFT analyst warned people about early investments in a certain NFT project as market behaviour has shown that projects often fail to maintain the above mint price peg. NFT project Pixelmon, in March, unveiled the finalised art for its project, with the quality turning out to be below expectations. However, the project raised close to $70 million with NFTs going for three Ether (ETH) per piece, with the floor price on the OpenSea NFT marketplace falling to 0.26 ETH. A study by blockchain analytics firm Nansen revealed that majority NFT collections either make money or end up getting less than they cost to create.
Moreover, Cointelegraph noted that OKHotshot mentioned about NFT truths around scathing of celebrities and influencers. “Web2.0 marketing is ineffective in the NFT market,” the individual added. Recently, Cointelegraph showed warning letters posted by a consumer watchdog group to around 20 celebrities for their part in shilling NFTs. OKHotshot also said about NFTs not carrying any form of intrinsic value.
(With insights from Cointelegraph)
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