NFT analyst OKHotshot on problems surrounding the NFT industry

Non-fungible token (NFT) analyst and blockchain detective OKHotshot has weighed in on 18 of his picks for the most “uncomfortable truths” regarding 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 surrounding the NFT industry, including unknown celebrity endorsements, hacking and the types of projects expected to fail. Reportedly, the analyst had a reputation for being a full-time on-chain analyst specializing in NFT audits and Discord security operating as @NFTheder on Twitter.

Based on information from Cointelegraph, OKHotshot said that the majority will bear financial losses through NFT-based investments. The individual said that reliability does not exist with regard to stable NFT investments. “Not all of us are going to make it. Most NFT traders trade at a loss,” said OKHotshot. 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 they lost money on their NFT investments. The NFT analyst warned people about early investments in a particular NFT project, as market behavior has shown that projects often fail to maintain the above coin price peg. The NFT project Pixelmon, in March, unveiled the finished art for its project, with the quality proving below expectations.The project raised close to $70 million with NFTs going for three Ether (ETH) apiece, with the floor price on the OpenSea NFT marketplace at 0.26 ETH. study by blockchain analytics firm Nansen revealed that the majority of NFT pools either make money or end up getting less than they cost to create.

Also, Cointelegraph noted that OKHotshot mentioned about NFT truths around cutting celebrities and influencers. “Web2.0 marketing is ineffective in the NFT market,” the person added. Recently, Cointelegraph showed warning letters posted by a consumer watchdog group to about 20 celebrities for their part in shilling NFTs. OKHotshot also said about NFTs not having any sort of intrinsic value.

(With insight from Cointelegraph)

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