Michael Owen faces backlash for claims his NFT project ‘can’t lose’ value
Former English football star Michael Owen has been ridiculed for claims his new line of NFTs will be unable to lose their initial value.
Owen partnered with crypto startup Oceidon to roll out a collection of 1233 NFTs which tell the story of his rise in football. Social media users were quick to accuse the Ballon d’Or winner of misunderstanding basic economic principles by claiming investors cannot lose money by purchasing his digital collectibles.
“Despite the critics, my NFTs will be the first ever that can’t lose their initial value,” Owen wrote in a tweet.
Alan White, the editor in chief of Politics Home, was quick to respond with a meme suggesting that NFTs would only be unable to lose value if their initial value was zero.
Swooping to Owen’s defence, his NFT business partner Andy Green issued a clarification.
“Correct, we cannot guarantee or say that you cannot lose. There is always a chance. There is no such thing in life as no risk propositions. But what we can do is protect the collector as best we can and that’s what the floor price protection will do,” he said.
However, Twitter users were quick to point out that if investors were unable to sell on their NFTs for less than they bought them for, the underlying asset could still lose value.
Owen’s comments run the risk of flouting the UK advertising watchdog’s rules for promoting crypto.
The Advertising Standards Agency has dubbed adverts for digital assets a “red alert” priority area. A flurry of judgements from the regulator have banned adverts which take advantage of investors’ inexperience and do not flag the risks associated with crypto investments.
Celebrities worldwide have landed themselves in hot water with followers for promoting crypto currencies on social media without making investors aware of the risks.
Kim Kardashian and Floyd Mayweather are both being sued through the US courts for promoting the crypto currency Ethereum Max in an alleged pump and dump scheme.
Read more: Zuckerberg: Facebook and Instagram to test NFTs on user profiles