16 May 2022 08:43, UTC.
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Former England footballer Michael Owen has been heavily criticized by cryptocurrency and soccer enthusiasts for claiming that his new collection of unique Legacy tokens cannot be devalued.
The former Liverpool and Real Madrid striker recently teamed up with blockchain technology company Oceidon to unveil an NFT collection called Legacy. Michael Owen and Oceidon claim that their non-interchangeable tokens are designed so that their value can only increase and never decrease. They function with a special mechanism to ensure that these NFTs don’t lose their value even when demand is low. As Oceidon executives have explained, people will not be able to sell Legacy collection tokens for less than they originally purchased them, even if there are buyers in the market.
The project has drawn a barrage of criticism from Owen fans and cryptocurrency enthusiasts. They fear that some NFTs will be artificially blocked at a high cost. If there is no demand for them, investors’ investments could “hang on” indefinitely, given the volatility of the NFT market. One soccer fan expressed bewilderment as if Owen “loves money so much that he is willing to involve his subscribers in risky NFT projects,” similar to “pump and dump” or pyramid schemes. James Daley, managing director of the consulting firm Fairer Finance, also commented on the situation:
“Financial projects promoted by celebrities are rarely successful. Michael Owen encourages people to invest their hard-earned money in risky assets. That’s easy for him to say, because he’s already made his fortune in soccer. But that’s not how most people do it,” Daly said.
A few months ago, celebrity actor Sylvester Stallone launched his own NFT collection, and in February, the family of Spanish artist Pablo Picasso announced that he would release a collection of unique tokens depicting his work. Earlier, the U.S. Internal Revenue Service (IRS) warned that even celebrities are not immune from criminal investigations if they encourage people to invest in dubious projects using NFT.
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