Challenges and Risks

Onboarding buyers who are non crypto natives or not tech savvy

Approximately less than 10% of our existing customers/fans have experience buying or have previously bought NFTs. We have received many inquiries and expressions of interest and commitments to purchase our Moon Pass NFTs via traditional payment methods.

In our initial engagement with our fanbase, several existing fans of ours who are less digitally savvy fans have already indicated interest to purchase some of these NFTs, but lack the knowledge and assurance to purchase and self-custody these assets. We are currently thinking about and designing a robust custody system where we shall hold these assets on their behalf.

We are strong believers in the mantra “Not your keys, not your coins”. Therefore, we shall also conduct sessions to educate the community who fit this profile, and onboard more individuals into the web3 ecosystem as full custodians over their own assets.

Relatively new technology risk

NFTs only attained mainstream attention in 2021, and are relatively new. There is still a lot of experimentation going on in the web3 and NFT ecosystem. The choice of blockchain to launch on could also pose a risk as these public distributed ledgers or blockchains are managed in a decentralized manner.

For example, the network could get too costly for our members to participate in secondary market activity. We will monitor closely on an ongoing basis the developments in the blockchain space and stay nimble.

Price of NFT and Volatility

Fans who buy an NFT for the purpose of speculation may feel angry if they are unable to resell at a higher price, and investor and member expectations will need to be managed.

We do not encourage speculators to buy our NFT.

Our NFT only represents a lifetime exclusive membership to our private club. This is not an investment and should not be viewed as an investment.

We also wish to further highlight that NFTs are mostly priced in the underlying cryptocurrencies of the blockchain they are hosted on, and therefore they are susceptible to additional price volatility. For example, the value of an NFT can fluctuate heavily in terms of ETH, and its price in USD terms can fluctuate even more heavily depending on the market price of ETH.

Scams and hacks aplenty

Like all other things digital/non digital, scams are rampant. NFTs are often associated with scams. It is more often so because of its decentralized nature. Web3 project creators can create a project as an anonymous/pseudonymous founder and abandon their projects after collecting the sales proceeds. Or they can create a fake project and steal funds from unsuspecting customer’s wallets who mint their project. There are plenty other innovative ways to scam, which will not be detailed here.

Phishing and Security

As the nft is minted on a decentralized blockchain, we need to use a non-custodial wallet such as MetaMask to purchase an NFT. When using a non-custodial wallet service, you’re fully responsible for remembering your private keys and maintaining security measures to protect your NFTs. If you forget your private keys, you will be unable to access your NFTs. There is no customer service in the event of a mistake, all funds or nft will be lost.