- Tokens usually fail when it comes to stay more than the mint price.
- The majority of NFT collections either yield nothing in terms of money or net less as compared to what they cost to create.
- NFTs prices are controlled by speculations and hype
OKHotshot, the NFT analyst and blockchain detective, has discussed 18 hard-to-digest truths regarding the NFT industry.
On August 27, he posted a 20-part Twitter thread mentioning the problems that are prevailing in the NFT space such as hacking, careless celebrity endorsements and projects that have possibilities of failing.
OKHotshot earned name and fame as a full-time on-chain analyst with expertise in NFT audits as well as Discord security working as @NFTheder.
According to him, among those who invest in NFT, the majority of the people will lose money.
Additionally, he shared that ‘diamond handing’’ is not a good way of making money, rather investors must make profits whenever possible.
Based on a poll, 64.3% respondents purchased NFTs to earn money; however, 58.3% of people lost money in their NFT journey.
According to the analyst, people interested in NFT must stay updated about the announcements, otherwise, they might get late learning about new projects on Twitter.
Furthermore, he warned that as compared to the floor price, liquidity and volume are more important aspects. However, more than anything, it is time that is more important. Hence, planning in advance is important.
5. By the time you hear about a new project on Twitter spaces, you are late.— OKHotshot (@NFTherder) August 27, 2022
Some uncomfortable truths are based on influencers and celebrities. OKHotshot claimed that even though influencers boast about NFTs on social media, their projects are bad investments. Recently, Today NFT News reported TINA.org warned 17 celebrities for shilling NFTs.
17. Celebrity NFT projects are notoriously bad investments.— OKHotshot (@NFTherder) August 27, 2022
Coming to the final point made by OKHotshot, the majority of NFTs lack any intrinsic value. NFT projects that do not have sale terms are not worthy.