NFTs: the next big thing and how to avoid getting rekt

By Senzacervello | Crypto Vagabond | 29 Sep 2020

Now that the so-called Decentralized Finance (#DeFi) has been filled with scam tokens and after many people have lost their assets hunting for the miraculous multipliers promised by liquidity mining, the herd is moving fast towards Non-Fungible Tokens in the hope to gain back what they have lost or, for the very few who got profit, to add up another big bag of gains.

As it has been for DeFi, the current narrative is trying to convince people on how easy will be to get enormous capital gains by simply buying whatever carries the name of NFT, sit on it for a while and resell it for the obvious 10x.

The mechanism is always the same: enter “early” in the niche, create FOMO (Fear Of Missing Out), convince people that whatever they buy will be changed into gold in a matter of days, dump on them for 10x what you have purchased, exit.

 It will work because people tend to have the memory of a goldfish and they will never give up with the hope to become rich when doing nothing.


NFTs, for those not familiar with the acronym, are Non-Fungible Tokens deployed on a blockchain. In other words, unique assets not interchangeable because of their specific, individual characteristics and whose ownership is regulated by the blockchain. They can represent both a real-world asset (a property, for instance, or a “share” of a property) or a digital asset.

People a bit more familiar with NFT immediately associate the acronym with the two most known use cases: digital art and game assets.


Dealing with NFTs is not exactly the simplest business in the world. Leaving apart what is not digital art or gaming asset, the assessment of the value of a NFT depends on a very wide range of factors and requires a deep knowledge of what you are about to do. Rest assured that whoever is making it simple is trying to mislead you. The best example is given by those filling their mouths with “scarcity”: “If one asset is scarce then it has a huge value”. Yes, like sandwiches filled with mud. They are scarce, but it is pretty easy to guess that the demand for that delicious sandwich is zero as well as the value of the asset you now own. Scarcity matters only when you compare to the demand of that asset.

Be aware also that these kinds of markets tend to be illiquid: it is relatively easy to purchase an asset, but to sell it could require a lot of time. This happens not because the world is plotting against you, but in general, “collectibles” work this way. They are not for the mass market, but for buyers who shares with you the same kind of “interest”, are willing to add that item to their collection and share the value assessment you did when you set the price. In some cases, the niche of potential buyers (giving the number of potential misalignment) can be very little.


As you might have guessed, getting rekt in NFTs is easier than to get profit, especially if you are not in the business.

Anyway, if you want to enter this market, but you feel it would be better to be supported by people who are into this business longer than you and have better knowledge, you could consider following a very interesting project named “Whale”. This project created a token, $WHALE, in the shape of a social crypto currency backed by one of the most valuable collection of NFTs around. Their “coin” is the first (and only, I guess) backed by these kinds of assets. I strongly recommend to read their whitepaper here because there you can find all the answer to almost all your questions. If you did not, feel free to join their Discord server and ask freely. The community growing around $Whale is strong and full of people ready to help.

What is particularly interesting about this project is that it let’s “invest” in NFTs via the token, but the dirty job of managing the portfolio is left to those who have enough experience to do it. In the meantime, you can earn more tokens by performing social activities and learn more about NFTs if you are interested in understanding better how it works. The “value” of your investment will be protected, but very likely will grow, while you earn and learn.

If you want more, you can join their liquidity pool on Uniswap by following this step-by-step guide. Currently a total of 8.000 per month $Whale is given as additional reward to each participant in proportion to the share of liquidity provided but notice that the minimum liquidity required to share it is 500 USD. If you do not have enough, do not worry because, after all, we are talking of a community token. So, the community already created three different pods where you can invest your liquidity for a much lower limit. Check them out for more information:

  1. Whalepod
  2. Pridepod
  3. Whalepunks


Maybe for many people crypto is still a game and losing “money” there can be considered as something you cannot avoid, like it happens in gambling. I personally disagree because it is true that the industry is in it infancy but is also true that you can convert that currency into “real” money (assuming it is not already). Giving up with emotions and false hopes can help a lot in starting to build a valuable portfolio of assets. It does not matter if you “invest” there a lot or a little because every little adds up. Some areas of the crypto industry are specific and you cannot pretend to get the best possible results if do not do your research or you do not use the help of those who know more than you do.

It is virtual, it is digital but it works exactly like in real life.

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Crypto enthusiast. One day fiat will be only for collectors

Crypto Vagabond
Crypto Vagabond

My life in cryptospace among blockchain games, NFT, promising projects and whatever catches my attention. In this blog I only write my own opinions and they are not financial advises for any reason. Always do your own research and never put at stake what you can't afford to lose

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