The value of your investment may go up or down.
You don’t have to be an experienced financial trader familiar with this line to warn consumers about risky investments.
But there is no such warning from the former Liverpool When England Striker Michael Owen claims his NFT (Non-Fungible Token) as “the first person who can’t lose its initial value.”
My Twitter Space is about to be published to discuss my NFT project. Despite critics, my NFT will be the first one that can’t lose its initial value 👊🏻
— Michael Owen (@themichaelowen) May 9, 2022
Owen is the latest and most famous name to launch its own range of NFTs, a type of digital asset built on the blockchain technology behind cryptocurrencies such as Bitcoin and Ethereum.It comes as Soccer is broader and deepening its relationship with this sector..
For their advocates, NFTs are an exciting digital version of collectibles such as trading cards.
However, this area is closely related to financial speculation, John terry When Andy Robertson I was embarrassed after promoting the NFT project, which quickly lost value and took some fans out of my pocket.
The cryptocurrency market has also recently plummeted, with the value of many tokens and NFTs dropping sharply from their peak.
However, Owen made a frowning claim that this would simply not happen in his plan, issued in partnership with a company called Oseidon.
The company’s co-founder, Andy Green, appeared on Twitter Spaces, which aired with Owen on Monday night. Owen sounded deeply enthusiastic about the NFT and was deeply motivated by the desire not to put his fans in the face of loss.
However, in a follow-up tweet, Green appears to be in direct conflict with Owen, clearly stating their NFT. can Lose value.
Is the correct answer. We cannot guarantee or say that we will not lose. There is always a chance. There is no such thing as a risk proposition in life. But what we can do is protect the collectors as much as possible, which is done by the protection of the lowest rates.
— Andy Green 🇺🇸 (agparadox.eth) (@agparadox) May 10, 2022
It seems that the idea is that you can’t sell at a loss because the NFT contains a code that guarantees that you can’t sell at a price lower than the price you originally purchased. This is what Green mentions when it comes to “floor price protection.”
However, if someone buys an NFT and the price goes down, it can’t be sold out and the loss can’t be reduced. In other words, you will lose the full amount you paid.
Without some form of repurchase guarantee (which will be refunded to people at the same price paid to the NFT), it is impossible to know how his claim stands. There is no indication of what Owen is doing or how the value is protected.
Independent football blogger Martin Karadin, who writes extensively about the relationship between football and the world of NFTs, calls Owen’s plan “economically illiterate” and the headline claims are inconsistent with Oseidon’s Terms of Service. Claims.
They state that “the value of the product of the asset … makes no representation of any kind that retains the value of the original purchase price or achieves future value.”
“This is a particularly shabby scheme because it is misrepresented as providing a solution to the problems of other NFT schemes,” said Calladine. Athletic. “In my view, the seemingly false sense of security it provides is even worse than a regular soccer NFT.”
There are few regulations surrounding cryptocurrencies and NFTs, and lawyers and politicians are looking for ways to deal with this area. This brought enormous wealth to some, but omnipotent loss to others.
However, it is the UK Advertising Standards Authority that has a clear view of cryptocurrencies and NFT-related advertising.
Section 14.4 of the Advertising Practices Committee code states, “Advertising must be made clear that the value of an investment can fluctuate and can fluctuate unless guaranteed.”
“Cryptocurrencies (and their performance-related investments) can be very volatile, which means they are vulnerable to dramatic changes and can significantly increase their value. It could drop significantly and mean a loss of capital, “the guidance said.
This is not Owen’s first foray into the world of cryptocurrencies and NFTs.
The winner of the 2001 Ballon d’Or, now the owner of a racehorse, promoted the DeRace NFT by selling horse photos as digital tokens in November last year when the crypto market was booming.
With NFT horse racing #metaverse @DeRaceNFT Manor House Stables NFT Limited Horse Collection Released!
I constructed and named these horses myself. Some will be exact replicas of my champion horse.
Don’t miss the chance to own part of history. pic.twitter.com/UIqcUl8tYC
— Michael Owen (@themichaelowen) November 2, 2021
Some horses were replaced at the end of last year for up to $ 100,000, with an average price of several thousand dollars, according to public data from the NFT trading website OpenSea.
However, since then, NFT sales have fallen slightly and are now sold at prices as low as hundreds of dollars.
In this case, the owner can reduce the loss and cash out at a lower price. This is an option not possible with Owen’s latest scheme tank, unlike many other soccer player NFT projects.
(Photo above: Robbie Jay Barratt – AMA / Getty Images)
