Crypto NFT is illiquid and prone to a big loss

[chenille]

Some people say, NFT is a big hype but we should be looking really closely to what most NFT's really are: useless and prone to loss.

NFT were launched as digital art to give up for sale and it got famous very fast because of hype. But as every hype, a justification needs to be searched and if NFT is really valuable to be bought for a high price.

But in reality, NFT has a huge risk:

Everyone needs to know about NFT: NFT's are completely illiquid. Each NFT needs a single buyer who decides to buy it and it will be really, really hard for you, to find someone willing to buy your single NFT.
Someone needs to see your NFT on Open Sea and pay your price.

A NFT is not like a coin or a token, where much liquidity is around because a coin or a token has many units to be requested by buyers. On exchanges, it is quite easily to sell your coins because liquidity is around. But no liquidity is around for a NFT. Your NFT needs a single buyer.
So many people are willing to buy BTC or a different coin, but how about YOUR single NFT? Not so much!

It is very unlikely to get a buyer for your single NFT because wise people will know how hard it will be to sell it again. So almost nobody wants to buy a NFT.

Some NFT are already dyed out and a statistic recently has shown a 90% loss of price for a wide range of NFT.
NFT is only interesting, when it's newly launched and it is hyped. But for re-selling, used NFT's are quite unpopular and likely to make a big loss.


NFT is just illiquid and prone for a big loss.

[Hydrogen]

NFTs are collectibles and memorabilia. The loose equivalent of baseball cards, old coins, artifacts. Except in a digital format validated by blockchain.

The main long term focal points of NFTs will be sentimental value, rarity and historical value.

For NFTs to be next level investments requires a successful attempt to embue them with intrinsic value and real world utility. Similar to the intrinsic value gold, silver and precious metals enjoy.

The NFT market currently carries a decent potential to become a bubble.

Jack Dorsey and others "selling" NFTs for values near rivaling the pricetag of the Mona Lisa painting was far too ambitious an overreach IMO. They should have aimed lower to create a more sustainable and realistic NFT market.

[Jawhead999]

I'd say in short NFT is scam.

Why should someone need to pay ridiculous amount to obtain an art while you can actually download it for free lol. Since crypto is pseudonymous where you can see which address send the token and which address send the NFT, but you don't know who behind of those address. It's possible a same person bought his own NFT with huge amount money to make people think this art is really expensive, so when this art is hyped, people really want to buy it. Easy money for him and the buyer will rekt.

[Poker Player]

NFT is just illiquid and prone for a big loss.

As for it being illiquid, it's like art. Art in general is not very liquid, although it is usually sought after by rich people as an investment, which pays off over the years. But for that you have to know how to choose. With NFTs, which are digital art, the same thing, most of them are very illiquid, and on the way to the bear market, as 99% of them are going to lose value or go to 0.

I'd say in short NFT is scam.

Why should someone need to pay ridiculous amount to obtain an art while you can actually download it for free lol. Since crypto is pseudonymous where you can see which address send the token and which address send the NFT, but you don't know who behind of those address. It's possible a same person bought his own NFT with huge amount money to make people think this art is really expensive, so when this art is hyped, people really want to buy it. Easy money for him and the buyer will rekt.

I think that apart from the fact that in some cases it is a scam as you mentioned, it is a new market in which a bubble has formed and burst, so the vast majority of people who have invested in them are going to lose money.

[Pomogator]

NFT today is still a very immature product on which everyone is trying to raise money due to the big hype. I think that a new generation of NFTs will appear in 3d space somewhere in the metaverses and it can already be called a really worthy replacement for 2d pictures. Now it is nothing more than an avatar in the social network.

[Fortify]

Some people say, NFT is a big hype but we should be looking really closely to what most NFT's really are: useless and prone to loss.

NFT were launched as digital art to give up for sale and it got famous very fast because of hype. But as every hype, a justification needs to be searched and if NFT is really valuable to be bought for a high price.

This was obvious from the very outset of NFT's as they are just images at the end of the day, which can be copied at will. There have been platforms to buy and sell images for decades already so it is a totally redundant idea to work in a Blockchain. We only have to see from the very first tweet being "sold" and losing 99.9% of its value after a recent sale fell through. The whole idea was absurb and just goes to show that some people have more money than sense.

[mk4]

I'd say in short NFT is scam.

Why should someone need to pay ridiculous amount to obtain an art while you can actually download it for free lol. Since crypto is pseudonymous where you can see which address send the token and which address send the NFT, but you don't know who behind of those address. It's possible a same person bought his own NFT with huge amount money to make people think this art is really expensive, so when this art is hyped, people really want to buy it. Easy money for him and the buyer will rekt.

I don't think we should call literally anything we don't like a scam. If a certain NFT project is being honest about their project without making false promises and such, how can it be a scam? There sure are a lot of delusional buyers, but let's not forget that a lot of them are totally aware that they're just purchasing a digital signature of a jpeg.

utterly bad investment != scam

[makishart]

The big problem is you need a buyer when you have no buyer and your NFT will become illiquid forever. The buyer itself will only buy your NFT when they have feel with your NFT unlike token that can be bought as store of value or investment. NFT is not even worth to be owned.
In this case i talked about the NFT art. Nft game asset may be the same but it's quite different caused by it has use case to be used as something like play to earn. NFT art has no utility and so this is a big bet for that,
I think that when you are owning the NFT art other thant he most popular NFT art in the open sea and this will always be useless art.

[avikz]

Some people say, NFT is a big hype but we should be looking really closely to what most NFT's really are: useless and prone to loss.

Can't agree more! Whoever talks about the sentiment value, I want to ask them, how on earth a pic of a stupid ape sells for millions while real piece of arts are failing. Does that prove that the apes were our ancestors? I can show at least 10 great pieces of art that got no buyer while stupic images of apes are getting sold for millions. That makes no sense!

NFT can only work when there is a celebrity endorsement. That creates an aspirational value. It's just a great way for celebrities to make more money, it's not meant for commoners like us! Pretty useless thing!

[vanesha]

well that could be true because we don't see any marketed buyers like the spot market in the NFT market, they can buy instantly if someone sells them, but they can't buy cheaper by placing orders like the spot market. But on the other hand, this is what is called a decentralized market, they have touched the characteristics of cryptocurrencies themselves, so the development of NFTs to date must be appreciated, but they must be further refined in the future.

[Findingnemo]

That is the trick behind the NFTs, when you're rich enough and got the fame to create a hype when you sell it on the marketplace then you will get price apart from this there is no real value like other cryptocurrencies which are always having market value because it keep traded on the exchanges and other marketplaces.

[fedelowe]

Some people say, NFT is a big hype but we should be looking really closely to what most NFT's really are: useless and prone to loss.

NFT were launched as digital art to give up for sale and it got famous very fast because of hype. But as every hype, a justification needs to be searched and if NFT is really valuable to be bought for a high price.

But in reality, NFT has a huge risk:

Everyone needs to know about NFT: NFT's are completely illiquid. Each NFT needs a single buyer who decides to buy it and it will be really, really hard for you, to find someone willing to buy your single NFT.
Someone needs to see your NFT on Open Sea and pay your price.

A NFT is not like a coin or a token, where much liquidity is around because a coin or a token has many units to be requested by buyers. On exchanges, it is quite easily to sell your coins because liquidity is around. But no liquidity is around for a NFT. Your NFT needs a single buyer.
So many people are willing to buy BTC or a different coin, but how about YOUR single NFT? Not so much!

It is very unlikely to get a buyer for your single NFT because wise people will know how hard it will be to sell it again. So almost nobody wants to buy a NFT.

Some NFT are already dyed out and a statistic recently has shown a 90% loss of price for a wide range of NFT.
NFT is only interesting, when it's newly launched and it is hyped. But for re-selling, used NFT's are quite unpopular and likely to make a big loss.


NFT is just illiquid and prone for a big loss.

thats if you talk about usual nfts, but m2e and p2e especially p2e have a great potential for long term investments, things like game, top-notch arts, novels for games, i have one p2e project (reptile chronicles), which i follow for 3 weeks, and in my opinion they have a very serious approach, just check that and reply me if im not right

[asriloni]

There are so many kinds of NFT but i do agree with it even with play to earn or even more to earn NFTs. All of NFTs minted were not liquid and it can be a loss to the owners since it can be sold when there's demand for that. that ever happened to me. It doens't matter what kind of NFT but as long as this has no buyer and this will always become illiquid. Just like when i have some axies that didn't have someone who interested in my NFT and this will become my loss.
people said that selling gaming NFTs relatively easy but they didn't know about the fact or even make a comparison between how many NFTs sold in a day and total NFTs distributed in the market.

[yazher]

NFTs are meant to be collected and the price varies over the period of time but the problem here is the constancy of the creators of NFTs where they keep making new ones. What if the NFT you bought last year will no longer be popular next year? because the trend inside the NFT industry keeps changing every year. see? this is the problem now, I wonder how they managed to reconcile these two. New NFT and old NFT.

[funteki]

Some people say, NFT is a big hype but we should be looking really closely to what most NFT's really are: useless and prone to loss.

NFT were launched as digital art to give up for sale and it got famous very fast because of hype. But as every hype, a justification needs to be searched and if NFT is really valuable to be bought for a high price.

But in reality, NFT has a huge risk:

Everyone needs to know about NFT: NFT's are completely illiquid. Each NFT needs a single buyer who decides to buy it and it will be really, really hard for you, to find someone willing to buy your single NFT.
Someone needs to see your NFT on Open Sea and pay your price.

A NFT is not like a coin or a token, where much liquidity is around because a coin or a token has many units to be requested by buyers. On exchanges, it is quite easily to sell your coins because liquidity is around. But no liquidity is around for a NFT. Your NFT needs a single buyer.
So many people are willing to buy BTC or a different coin, but how about YOUR single NFT? Not so much!

It is very unlikely to get a buyer for your single NFT because wise people will know how hard it will be to sell it again. So almost nobody wants to buy a NFT.

Some NFT are already dyed out and a statistic recently has shown a 90% loss of price for a wide range of NFT.
NFT is only interesting, when it's newly launched and it is hyped. But for re-selling, used NFT's are quite unpopular and likely to make a big loss.


NFT is just illiquid and prone for a big loss.

mostly yes, but there is still big part of projects which will pump in nearest future

[Kemarit]

NFTs are meant to be collected and the price varies over the period of time but the problem here is the constancy of the creators of NFTs where they keep making new ones.

Anyone can make NFT's and then call it an art, sold and hope that in the future it will have a value, but that is not always the case. As in the case of art collections in real life that can appreciate overtime, NFT's are not as far as I' concern.

What if the NFT you bought last year will no longer be popular next year? because the trend inside the NFT industry keeps changing every year. see? this is the problem now, I wonder how they managed to reconcile these two. New NFT and old NFT.

Yeah, that's one scenario, and it means that the NFT industry is just based on pure hype alone.

[chenille]

thats if you talk about usual nfts, but m2e and p2e especially p2e have a great potential for long term investments, things like game, top-notch arts, novels for games, i have one p2e project (reptile chronicles), which i follow for 3 weeks, and in my opinion they have a very serious approach, just check that and reply me if im not right

I can't say how competitive it is because I don't see at all how most NFT can be a store of value.
Most likely, 99% of NFT's will end up in a big loss.

Yeah, that's one scenario, and it means that the NFT industry is just based on pure hype alone.

You can see it especially right now because all NFT's are down. No hype = no value in NFT's.
A bear market will kill so many NFT's if most NFT's won't be forgotten anyways.

In 10 years, almost nobody will be interested to buy a random NFT from 10 years ago. 

[zasad@]

NFT Assets grow in price very quickly and fall very quickly. There is a lot of manipulation in this market when the owners of NFT tokens buy their assets from another wallet.
It's also a very convenient way to understate taxes when you buy your NFT for $100,000 and then sell it to yourself for $50,000. You have a loss of $50,000.

[justdimin]

NFTs are meant to be collected and the price varies over the period of time but the problem here is the constancy of the creators of NFTs where they keep making new ones.

Anyone can make NFT's and then call it an art, sold and hope that in the future it will have a value, but that is not always the case. As in the case of art collections in real life that can appreciate overtime, NFT's are not as far as I' concern.

The difference between real ART and NFT's is the fact that NFT's could be created within an hour and reach millions whereas real art takes time (or you can make it quick as well) and unless you are famous, it's quite difficult to get it heard everywhere.

Plus, there are some people all around the world who are interested in art, but not enough patrons per artist ratio, whereas in the NFT world there was a situation where investors were waiting for people to create some NFT so that they would invest and each release got minted in a minute. So, we can't really talk about the same thing when we look at art vs nft, they are different in nature.

[bitbollo]

It's like has invented paper, brushes and colors for the first time... and all people around are creating some "art" became "artists" proposing their "creation" even if in reality... they are not remotely artists. it's plenty of examples of completely useless or ugly NFT that has really nothing to as innovative!

the real problem is that ... there are too many NFTs!
a bit like the CK cryptokitties ... there are too many of them and many have a real market value of 0, practically have any real use ... it's more expensive create a list of an item like this then the real value to be earned.

I am wondering if these items will be identified one day in the future like "blockchain antiques"