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Since publishing the original Trouble in NFT Paradise article, I’ve gone down a virtual rabbit hole of additional revelations and it turns out the brave new world of NFTs has more land mines than most people are aware of. What also struck me was that my article on Where to buy NFTs garnered more than 15 times the views of the “Trouble” article, which suggests that the excitement for NFTs still far outweighs the concerns.
In the exuberance of the speculation, novelty, and sheer abundance in the NFT world, it is not all that surprising that people would put on blinders to the risks. People get complacent with the downside risks of stocks as well, and we have also seen multiple major corrections in cryptos. That’s what markets do because markets are people and people have behavioral biases.
I don’t write this to dissuade people from joining the excitement in NFTs. I simply feel it makes good sense to be aware of potential issues that could potentially turn your NFT investment from software to vaporware. I am still very positive about the ultimate outlook for NFTs, but until some sort of regulations and investor protections are introduced, people need to be extra vigilant about protecting their interests.
With Ease of Creation Comes Ease of Corruption
By their nature, NFTs are about the easiest form of investment (or at least potential investment) to create and offer for sale. For a few hundred dollars or less, one can “mint”…
