- Tyler pounced at the chance to invest when Floyd Mayweather began promoting an unknown NFT project on Twitter this year.
- Tyler, 35, a property manager whose family owns a small transport company in Miami, said he saved around $12,000 and acquired the NFTs with the support of his family.
- This redundancy in cryptocurrency critics, watchdogs and a few influencers think it is an ongoing problem.
NFT Investors To Face Tough Times Due To Celebrities
Tyler pounced at the chance to invest when Floyd Mayweather started promoting an unknown NFT project on Twitter this year.
Tyler’s “greatest motivation” in his martial arts training had already been boxing legend Floyd Mayweather.
Tyler, on the other hand, was seeking financial possibilities and decided that Mayweather, who goes by the nickname “Money May,” was worth listening to.
“What I need everyone to do right now is go grab a Bored Bunny NFT,” Mayweather stated.
Tyler, 35, a site manager whose family owns a small transportation organisation in Miami, said he saved roughly $12,000 with the support of his mother and used it to purchase non-fungible tokens, which are digital tokens that represent ownership of digital pictures.
The project in this instance was a series of photographs of bunnies that were similar in nature to the iconic Bored Ape Yacht Club images that fueled a surge in NFT art projects.
Those NFTs now are worth a fraction of what Tyler spent for them.
In its advertising material, the Bored Bunny team claimed that customers might make “2x, 5x, maybe even 10x the worth of [their] investment,” yet the value of the NFTs tied to the photographs plummeted after a brief rise and has yet to recoup. The current floor price for a Bored Bunny NFT is 0.05 Ethereum.
It’s a trend that crypto detractors, watchdogs, and even some pundits point to as a continuous issue: digital ventures backed by high-profile recommendations and going through a period of NFT enthusiasm that swiftly loses value.
In other circumstances, it’s referred to as a “rug pull” in the crypto industry.
However, ad integrity experts caution that celebrities are frequently endorsing NFTs without conducting a due investigation or notifying their supporters about the potential financial hazards.
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Source: https://www.thecoinrepublic.com/2022/05/24/celebrity-approved-nfts-wiping-investors-out/