Investing in NFTs on a marketplace carries several risks that investors should be aware of. One of the biggest risks is the volatile nature of the market, which can lead to rapid fluctuations in the value of NFTs. This can result in significant losses if an investor purchases an NFT at a high price and then its value drops.

Another risk is the potential for fraud and scams in the marketplace. Some sellers may try to sell fake or unauthorized NFTs, which can lead to losses for buyers. It is important to thoroughly research the authenticity of an NFT before making a purchase.

Additionally, the lack of regulation in the NFT marketplace can pose a risk to investors. There are currently no clear guidelines or regulations regarding NFTs, which can leave investors vulnerable to fraudulent activities or market manipulation.

In summary, while investing in NFTs on a marketplace can provide exciting opportunities, it is important for investors to carefully consider the risks and do their due diligence before making any investments.