Disclosure: Michael Owen's allegations regarding the NFT collection

Disclosure: Michael Owen’s allegations regarding the NFT collection

The value of your investment may increase or decrease.

You don’t need to be an experienced financial trader to become familiar with this line to warn consumers about risky investments.

However, there is no such warning from former Liverpool and England striker Michael Owen, who has claimed that their NFT (immutable tokens) will “be the first token that does not lose initial value”.

Owen is the latest celebrity to launch his own NFT series, a type of digital asset built on blockchain technology that supports cryptocurrencies including Bitcoin and Ethereum. It emerges as football deepens its ties with this sector in a broader sense.

For its defenders, NFTs are an exciting digital version of collectibles like trading cards.

However, the space is closely associated with financial speculation, and a number of top players, including John Terry and Andy Robertson, were embarrassed after promoting NFT projects that were rapidly losing value and ripping some fans out of pocket.

Cryptocurrency markets have also been flooded in recent days, with many tokens and NFTs drastically losing their value from their peaks.

But Owen claimed this simply wouldn’t happen, with his plan published in partnership with a company called Oceidon.

Andy Green, co-founder of that company, appeared on a Twitter Spaces post with Owen on Monday evening. Owen seemed genuinely enthusiastic about NFTs and was sincerely motivated by his desire not to let his fans face losses.

But in a follow-up tweet, Green appeared to be directly contradicting Owen, stating that his NFTs were clearly stated. to be losing it’s value.

The idea would seem to include a code that ensures the NFT cannot be sold for less than the price it was originally purchased for, so it cannot be sold at a loss. This is what Green is talking about when he talks about “price floor protection.”

But if someone buys an NFT and its price drops, then they cannot cut their losses by selling, meaning they lose the entire amount they paid for it.

Without some sort of buyback guarantee that people will be refunded at the same price they paid for NFTs, it’s impossible to see how its claim stands. No indication of what Owen did or how the value was preserved.

Martin Calladine, an independent football blogger who has written extensively about football’s relationship to the world of football and NFTs, describes Owen’s plan as “economically ignorant” and argues that the headline claim contradicts Oceidon terms and conditions.

They say that “we make no representations that the value of any product of the asset… will retain the value of the original purchase price or reach any future value.”

“This is a particularly shabby plan because it presents itself – incorrectly – as offering a solution to the problems of other NFT schemes,” Calladine said. Athletic. “To me, the seemingly false assurance it offers makes it even worse than regular football NFTs.”

While lawyers and politicians are trying to figure out how to tackle this space, there is little regulation surrounding cryptocurrency and NFTs, bringing enormous riches to some and enormous losses to others.

However, one body that has a clear view on cryptocurrency and NFT-related advertising is the UK Advertising Standards Authority.

Section 14.4 of the Advertising Practices Committee Code states that “advertisements should make it clear that the value of investments is variable and can go up or down if not guaranteed.”

“Cryptocurrencies (and the investments linked to their performance) can be extremely volatile, which means they are vulnerable to dramatic changes, so while their value can increase significantly, they can also drop drastically, which could mean a loss of capital,” the guide says.

This isn’t Owen’s first foray into the world of cryptocurrencies and NFT.

The 2001 Ballon d’Or winner, now a racehorse owner, introduced DeRaceNFT last November as the crypto markets exploded, selling images of horses as digital tokens.

Publicly available data on the NFT trading website OpenSea reveals that the average price of some horses late last year changed hands from thousands to $100,000.

But since then, sales of NFTs have slowed to a trickle, and they now sell for under hundreds of dollars.

In this case, the owners can cut their losses and withdraw cash at a lower price; this is an option that will not be possible in Owen’s latest blueprint tanks, as in many other football NFT projects.

(Best photo: Robbie Jay Barratt – AMA/Getty Images)

Leave a Comment

Your email address will not be published.