Cristiano Ronaldo’s new NFT collection has gone viral and generated a lot of buzz. However, investing in NFTs can be a very risky bet. At Globe Live Media we explain why
One of the most viral news recently is the launch of soccer superstar Cristiano Ronaldo’s first NFT collection in collaboration with non-fungible token creation and exchange platform Binance Marketplace.
Cristiano Ronaldo announced the launch of this collection through his Twitter account, which caused a furor among his fans, who began to search for information on the topic on the web incessantly.
Just one day before launch, searches for “Ronaldo” increased 47% worldwide. Likewise, there was an increase in the search for the word “Binance” of at least 499% in the United Kingdom, a sign of the interest of the followers of the Portuguese player and his NFT.
But this launch has sparked a debate among investment specialists: whether social networks can cause you to bet on NFTs that can make you lose money. Despite the fury that Cristiano Ronaldo’s new NFT collection has caused, there are many who wonder if they can really be a good investment.
There is no clear answer to the question of whether or not it is worth investing in NFTs, even if they are from Cristiano Ronaldo. But at Globe Live Media we tell you what are the advantages and disadvantages of investing in these digital assets so that you can make the decision that suits you best.
Why is it worth investing in NFT?
1) Anyone can invest in NFTs: the possibility of investing in NFTs is available to practically any user interested in them. And, by the nature of this market, obtaining them is a simple process, so no matter where you are in the world, you will be able to acquire an NFT without too much trouble.
2) Ownership of NFTs is secured by blockchain technology: Thanks to this type of technology, investors can be sure that their ownership of NFTs is secure. In addition, blockchain technology helps make the ownership of NFTs more transparent.
3) It is an opportunity to diversify your investment portfolio: Allocating a small sum to NFTs can help you diversify your investment portfolio, which would, in theory, reduce its risk.
Why not invest in NFTs?
1) NFTs have also lost a lot of value, even if they are promoted by celebrities: there are well-known cases of superstars who have promoted NFTs that, rather than enrich their investors, have caused them to have considerable losses. This was the case, for example, of the NFT promoted by Floyd Mayweather Jr. and the project known as the Bored Bunny NFT.
2) NFTs are not active in the strict sense of the word: this means that they are not regulated by government agencies, and have high levels of volatility and overvaluation.
3) The value of NFTs has plummeted this year: Cryptocurrency critics, watchdogs and naysayers point to digital investments riding a wave of NFT enthusiasm and backed by high-profile people losing value fast. This is what has happened this year, in fact.