and his family as an nft let's say you're into the royals and so you buy this nft thinking that it will deliver value over time well it does but what's also delivered is a copyright infringement lawsuit to your front door you see there's no law prohibiting the mentor of this digital photo of prince harry from creating an nft but there are laws across the globe that prohibit people from owning copying and transferring copyrighted image without the permission of the original copyright holder maybe in this case prince harry so before you buy your first nft you got to do some due diligence do some research to determine whether or not the person who minted that nft was actually authorized had permission from the person who created the art that the nft represents if you don't do that you risk having a problem with the law later on and i don't want you to do that danger number two when you sell an nft you may have to cut in on the deal some invisible partners some nfts come pre-loaded with smart contracts that smart contract says whenever that token is sold then a percentage of the sale price goes to the original creator the original mentor of that nft token you don't have to do anything whenever you sell it a portion of the proceeds will go to the person who's scheduled to receive that payment so if you bought an nft of a famous professional basketball player for about a thousand bucks and it had a smart contract with a NUMBER_TOKEN residual when you sold that nft for let's say ten thousand dollars then three thousand dollars of that sales price is automatically being transferred to in this case the basketball player so beware of smart contracts in your nfts before you buy an nft make sure that there's no smart contract attached or at least you know that there is a smart contract and so when you eventually do sell that nft you're not going to be making the full sales price as a commission or as a profit danger number three nft sales prices fluctuate hard if you spend any time in the nft markets you're going to see that oftentimes nfts are issued for like NUMBER_TOKEN ether or maybe NUMBER_TOKEN bucks and no one buys them and no one bids on them and quickly their value plummets so what's really tough about nfts is when you buy let's say an nft you spend five thousand dollars on an nft thinking that in a short amount of time it's gonna be worth a hundred thousand dollars and then it doesn't go to a hundred thousand dollars in fact it goes down in value and you're stuck with literally nothing it's just computer code existing in your digital wallet somewhere don't say i didn't warn you but at the same time have some fun life is too short not to spend NUMBER_TOKEN bucks on a world of warcraft doom hammer like and subscribe for more legal tip videos and go out there and be careful with those
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