NFTs: the dangers of the gold rush!
Jack London's breathtaking books tell of men who dropped everything in search of gold, from "Like Argus of The Ancient Times" to "The Taste of The Meat."
Few know of his other stories, in which wide-eyed adventurers starve to death or fail spectacularly just before reaching their destination, though it makes sense: there are usually hundreds of losers for every winner. It's much the same in the NFT industry.
In the quest for that one NFT that can be bought for $100 and sold for $11,750,000, many have lost fortunes. Here are a few words about the risks.
Here Marketwatch describes the disappointing drops as well as the ecstatic highs in an article aptly titled "this is how much money you'd have lost if you bought a Bored Ape Yacht Club NFT a month ago."
"Bored Ape Yacht Club, one of the most popular NFT collections, saw its minimum price, or lowest price among the items, plummet to 88 ETH on Friday, equivalent to about $153,000, down from 138 ETH on April 27, equivalent to more than $390,000, based on the Ether price at that time, according to CoinGecko data.
In the past month, it's fallen more than 60%, or $237,000."
Doesn't that seem pretty harsh? In fact, other NFTs have seen their owners lose millions (assuming they sell them at a predetermined level to avoid losing everything). To keep your losses to a minimum, if you've decided to get seriously involved in NFTs, make sure you:
- Act responsibly
- Research your product thoroughly
- Listen to the advice of your trusted advisor
- Don't trade more than 2% of your capital in a single day
- Read professional development literature before transferring money.
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