Money Moral Dilemma - Invested in NFTs with a friend

london21

Do not follow the crowd.
Really understand what you are investing in and the risks.
There are no quick get rich schemes. 

Fernendo321

newdriver101 said:

I don’t think there is a dispute on the facts or what was agreed.
Your friend simply wants to change the nature of the agreement because she ended up with the rotten end of the deal.

You clearly have no obligation to change the deal you agreed so I think your “dilemma” hinges on whether you want to maintain the friendship or not…

These eggs are going to forever be a glitch in your friendship.

The way I see it - these are your options:
- If you want to maintain the friendship + moral high ground then sell the eggs to a 3rd party (ie remove the “offending” assets that have turned you into warring friends - resume friendship as if this never happened)…

- If you want to maintain the friendship but are still hurting as a deal is a deal + she agreed to it then SELL her an egg (ie you still have 2 she has 1 + you’ve made some money from the sale so you still “win” - sort of)…

- If you want to maintain the friendship at all costs then GIVE her an egg (ie she;s a friend, it’s only money, you both “win” - kind of)…

- If you don’t want to maintain the friendship then ignore the friend + move on with your life and NFTs...

Thanks for your reply I think this is a good idea.  My reservation with giving her a bird is that it's kind of like having a buy friendship.

I don't think option 1 would work as she would still be angry that I sold the egg and didn't give it to her.

I do have an idea of something of value I can give her as a peace offering which I might try.

Fernendo321

london21 said:

Do not follow the crowd.
Really understand what you are investing in and the risks.
There are no quick get rich schemes. 

I agree.  These things are high risk high reward.  There are much safer investments but they carry lower reward.

Fernendo321

london21 said:

Do not follow the crowd.
Really understand what you are investing in and the risks.
There are no quick get rich schemes. 

The real winners are the people that start these projects.   Lower risk for them and higher reward.

strawb_shortcake

If I had of bought them jointly, I would have gone with you each own 50% of each egg and not we pick 5. Why didn't you just 5 to start with each and avoid this problem.

Surely the main benefit of this joint venture is paying for 5 but increasing the chances of  reward by having a vested interest in 10

Fernendo321

annabanana82 said:

If I had of bought them jointly, I would have gone with you each own 50% of each egg and not we pick 5. Why didn't you just 5 to start with each and avoid this problem.

Surely the main benefit of this joint venture is paying for 5 but increasing the chances of  reward by having a vested interest in 10

The problem with owning 50% of each egg is there are different options you can sell straight away, wait for them to increase in value and sell, get revenue dividends or even rent them out.   It's very unlikely we would have agreed on what to do with them and when to do it had we agreed to own 50% of each egg.  That would most likely have been an even bigger disaster.  

We did divide them 5 each at the  start with that was always the plan.   The issue is we purchased together instead of separately to save on transaction fees so she feels like she has a claim to my 5 eggs.

Fernendo321

annabanana82 said:

If I had of bought them jointly, I would have gone with you each own 50% of each egg and not we pick 5. Why didn't you just 5 to start with each and avoid this problem.

Surely the main benefit of this joint venture is paying for 5 but increasing the chances of  reward by having a vested interest in 10

No the benefit of the joint venture was to save on gas (transaction) fees which can be hundreds of dollars.  In theory the more you buy at one time the less you pay in fees.

Think of it like if you and a friend are going to the shop and you share a taxi to save money rather than each get a separate taxi and pay more.

Malthusian

Fernendo321 said:

I agree.  These things are high risk high reward.  There are much safer investments but they carry lower reward.

There are also equally risky investments that carry much higher potential reward. Angel investing, venture capital, EISes, etc. Anything with a significant chance of total loss counts as "equally risky". The reason they carry higher potential reward is that they don't rely solely on some other sucker losing money so that you can cash out.

That said they are still almost certainly unsuitable unless you already have enough in your pensions and ISAs that you can afford to retire now and never do a stroke of work ever again and can afford to lose some of your capital to fund early stage technology and businesses.

Newdriver summarised your options and there is little to add.

There is a common saying in these parts "you can be somebody's creditor or friend but not both". Similarly "you can be co-investors in a get-rich-quick scheme or friends but not both". Two participants in the same get-rich-quick scheme cannot be friends because both of them are competing to take each other's money (along with everyone else in the scheme) in the hope of cashing out at a profit.

If you are playing poker with friends for beer money you can easily remain friends even if one of you takes all the money off the table. If you're betting four-figure sums which clearly represent a meaningful amount it's delusional to think the friendship won't be affected.

So the answer is to either keep the NFTs and write off the friendship, or keep the friendship and write off your losses. Alternatively you can make both of you unhappy by not making a decision.

Fernendo321

Malthusian said:

Fernendo321 said:

I agree.  These things are high risk high reward.  There are much safer investments but they carry lower reward.

There are also equally risky investments that carry much higher potential reward. Angel investing, venture capital, EISes, etc. Anything with a significant chance of total loss counts as "equally risky". The reason they carry higher potential reward is that they don't rely solely on some other sucker losing money so that you can cash out.

That said they are still almost certainly unsuitable unless you already have enough in your pensions and ISAs that you can afford to retire now and never do a stroke of work ever again and can afford to lose some of your capital to fund early stage technology and businesses.

Newdriver summarised your options and there is little to add.

There is a common saying in these parts "you can be somebody's creditor or friend but not both". Similarly "you can be co-investors in a get-rich-quick scheme or friends but not both". Two participants in the same get-rich-quick scheme cannot be friends because both of them are competing to take each other's money (along with everyone else in the scheme) in the hope of cashing out at a profit.

If you are playing poker with friends for beer money you can easily remain friends even if one of you takes all the money off the table. If you're betting four-figure sums which clearly represent a meaningful amount it's delusional to think the friendship won't be affected.

So the answer is to either keep the NFTs and write off the friendship, or keep the friendship and write off your losses. Alternatively you can make both of you unhappy by not making a decision.

Thanks for your answer it's good.

I don't think it's a great rich quick scheme because I don't think anyone involved expects to get rich at all let alone quickly.  Yes we are hoping for a return on our investment but I don't think anyone is expecting something crazy or unrealistic or to get rich.

In fact I was chatting in the group the other day and people said that the "dividend" payment obviously won't make anyone rich just in case people had the wrong idea.  

Crypto gets a bad name because the media constantly attack it but I could invest in stocks that are far riskier than some cypto projects equally I could invest in certain crypto that are far risker than stocks.  It depends on what you buy, when you buy it and how you manage risk.

It's about doing your research, diversifying and managing risk.  Yes I have made mistakes along the way but I am learning. 

A lot of NFTs are useless but these apparently have utility as there are developemnts such as play to earn games, concerts, metaverse etc that will require one of these NFTs for access so basically you are buying a lifetime ticket (in NFT form) to future events and whether the ticket (NFT) rises or falls in value depends on how successful the game, concert etc is.

It's like if you buy a ticket to a pop stars concert.  If the pop star and concert turn out to be very popular and in demand you can sell your ticket for more than you paid but if demand is weak you might only be able to sell your ticket at break even point or a loss. 

In regards to your point about being in competition with her I suppose it's like being friends with a co worker.  On the one hand you are friends on the other you are both competing for a pay rise / promotion so there is potential for conflict.  This doesn't mean you can't be friends but it can be a bit of a minefield.

Scotch_Bonnet_

Well, she agreed to the deal before you broke the eggs!