- OKHotshot stated most NFT trader trade at a loss.
- NFT analyst said celebrity NFT projects are notoriously bad investments.
Blockchain researcher and Non-Fungible token (NFT) expert OKHotshot tweeted about 18 most uncomfortable facts to its 45K followers regarding the NFT sector on Saturday. In a long thread, the analyst highlighted many challenges facing the NFT sector, including hacking, losses, and projects that are nearly always expected to fail.
18 Uncomfortable truths about the NFT industry that’ll put you ahead of 96% of people … 🧵
— OKHotshot (@NFTherder) August 27, 2022
OKHotshot mainly stated that most people who invest in NFTs will lose money, and he mentioned blue chip NFTs and advised investors to run away since there are no steady investments in NFTs. He also suggested grabbing profits when they are available rather than depending on diamond handing, which is not the most excellent way for investors to generate money.
The majority of nft projects fail to stay above mint price 4 months after launch.
Breaching Over NFT Projects
The popular social networking platform for Non-Fungible Token (NFT) projects, Discord, has been the target of recent hacker attempts. According to new research from Web3 security company TRM Labs, during the last three months, there has been a rise in hacker attacks on Discord.
In June 2022, the detection of phishing attempts connected to NFT minting scams held by using hacked Discord accounts soared by 55% as compared to last year. The data from TRM Labs also shows that the NFT market has struggled and lost around $22 million since May 2022.
Additionally, Bored Ape’s social media accounts Instagram and Discord compromised earlier this year led to a loss of over $13 million. Following that, hackers recently gained access to Premint, a well-known NFT registration platform, and stole 320 NFTs worth more than $400,000. Furthermore, NFT influencer Zeneca became the latest victim as the attackers promoted on Zeneca’s Twitter account in an attempt to attract investors.