Earlier this week, former English soccer star Michael Owen, alongside his enterprise associate Oceidon, a Guernsey-based blockchain expertise supplier, rolled out a brand new non-fungible token (NFT) undertaking dubbed Legacy. Nevertheless, it shortly drew criticism.
An NFT Assortment That Doesn’t Lose Worth?
The companions claimed that the NFT assortment was designed in such a method that its flooring worth can solely improve however by no means go down, making it the primary of its sort.
In response to The Telegraph, Andrew Inexperienced, the co-founder of Oceidon, advised customers that that they had devised a mechanism to make sure that the NFTs don’t lose worth even when there may be low demand.
“We’ve give you a technique to prohibit folks promoting the NFTs for lower than what they initially acquired them for,” Inexperienced mentioned.
The duo mentioned the tokens will be bought at a hard and fast flooring worth and be traded by customers. However as soon as the demand for the NFTs decreases, holders won’t be allowed to promote them for much less, even when there are prepared patrons obtainable available in the market.
Which means that the NFTs could be artificially locked in at a excessive worth. If demand for them doesn’t come again up, buyers may lose their funds indefinitely, a dangerous enterprise contemplating the unstable nature of the NFT market.
Owen Faces Robust Criticism
Owen’s claims about his new Legacy NFT assortment precipitated fairly a stir on social media, with some followers and crypto fans asking, “Is that as a result of they’re price nothing to start out with?”
One fan bashed the footballer, saying:
NFT initiatives like this are virtually at all times pump and dump or pyramid schemes which are designed to lose different folks cash.
Are you so in love with cash that you simply’ll fortunately shill for this form of factor to use different folks?
— GoalScorer Problem ⚽️ (@GoalscorerC) May 8, 2022
Weighing in on the matter, James Daley, managing director at Fairer Finance, famous that he discovered it “surprising” that Owen had used his fame to advertise what was, in actuality, a high-risk funding.
“Celeb promoting in monetary providers hardly ever goes properly. Michael Owen is encouraging folks to speculate their hard-earned money in dangerous property. It’s all very properly for him as he has already made his fortune in soccer. However for most individuals, that’s not the case,” Daley mentioned.
Featured Picture Courtesy of Yahoo
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