The Good
As you know, there’s plenty of money to be made in the NFT world. Recently, you could’ve minted Mekaverse or Rogue Sharks and flip on the secondary market for insane multiples. So yeah, minting NFTs and praying to the crypto Gods for higher valuations on the secondary market is one way to profit in this sub-sector of crypto, but I’m writing this piece to tell you the bad things no one is talking about. There’s a dark side to NFTs that most are keeping hush-hush. Because frankly, the downside of investing in jpegs can be disastrous.
The Bad
In my experience, there’s a lot more money to lose in the art landscape than most would like to admit. If you’re one of the few people making five-to-six figures off flipping shit, then congrats. Truly, that’s super impressive. Because it’s not easy. As a matter of fact, you’re more likely to lose all your money than you are to make a profit. Which is why I’m writing this. I see too many people OK with their bags dumping just because they like the art. Or maybe they decide to hold on to a piece for too long because they fell in love with their ‘little guy’.
That’s complete horseshit. You’re here to make money. Period.
It’s not ok to accept losing money because you like the art. This is the same mentality as hodling forever through bear markets and such. Ridiculous. In this game it’s too easy to click a button and buy another NFT with money you’re completely unattached to. Then you wake up one day realizing you were just degen gambling for the thrill of it, not to make money. 80% of the shit NFTs in my wallet should’ve never been bought. Please be sure to purchase stuff that are high-quality art. Try to restrain from aping too often into bull shit you’ll later regret. Because you won’t be able to extract that money ever again, most likely. These are illiquid jpegs, remember?
The Ugly
The truth is most of you don’t have the bankroll to stay in the NFT game long enough to make the big bucks. Because like anything, there’s a lot to learn. And it’s very easy to smooth-brain ape too much of your capital into crap that will never sell again. Because let’s be honest, buying NFTs is addicting af. You really should just be accumulating blue chips at discount prices. If you can’t afford them, you need to produce more cashflow in order to purchase them. Or, you must be willing to hold whatever you buy for at least 6 months (and not need the money at all). If you can’t do that, if you think going in it’s just going to be a ‘quick flip’ then you may be disappointed when the market doesn’t cater to your plan. You’ll be fucked. Over and over and over.
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So that’s it, just wanted to say some dark shit about NFTs because I know for a fact there’s a lot more people losing money than there are making money and everyone seems jolly af about it. When investing in NFTs, please stay grounded in reality and don’t degen ape things for the adrenaline rush. Make sound investments, and be willing to diamond-hand projects if your plan goes south.
Happy hunting!
-Scared Money