The Central Bank of Taiwan considers NFTs to be inappropriate and warns the general public to stay away
Although non-fungible tokens have suddenly emerged in the digital space, their growth also presents some insecurities. More and more people are embracing NFT and its many opportunities in the virtual world. Increased attention is being paid to the various uses and applications of NFTs. While some brands use the tokens for advertisements, others use them to build and attract a strong community of users.
However, recent reports of fraudulent activity involving non-fungible tokens are on the rise. Various scam strategies and activities have been attributed to the use of NFTs. Such lifting also attracts the attention of different governments, regulatory bodies and financial institutions.
There are rumors and beliefs that many fake transactions are happening in the NFT space. Furthermore, a recent report revealed the Central Bank of Taiwan’s warning with the same opinion about fake NFT transactions.
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Taiwan News reports that the ROC Central Bank takes a skeptical view of investments in NFTs. The country’s leading bank based its statement on a survey of NFT collections. According to the report, the return on investments in NFTs has been recorded at less than 30% among investors. Additionally, many NFTs of artwork remained unsaleable.
NFT collection could be questionable
In its argument, the bank doubts the legalization of property with collectibles. The definition of NFT is found in the physical and virtual elements.
Therefore, once an investor acquires a collection of NFTs, they must prove ownership and verify authenticity. But the bank argues that it is possible to attract dubious creators as anyone could develop NFTs to steal investor data.
Furthermore, the Central Bank of Taiwan identified the considerable growth of the NFT market last year. In 2020, the market had around 75,000 merchants hovering over NFT transactions. The number has gradually increased to 2.3 million participants in 2021. But the general fall in prices in the crypto space has also affected the performance of NFTs.
The cryptocurrency market falls again on the daily chart | Source: Total Crypto Market Cap on TradingView.com
Remember the case of Logan Paul, the famous American youtuber who joined the NFT space last year. Through its partnership with Bondly Finance, the company planned to develop an NFT collection for its Pokemon Break Box.
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He then returned to the sector after a few months, but some investors were wary of his moves. Then came the accusation of retouching stock images, which he used for his Cryptozoo collection. But according to the report, unsuspecting investors bought the NFTs anyway and sold them for millions of dollars.
In a similar report, Microsoft co-founder Bill Gates also warned NFT investors to be careful with their transactions.
Based on your description, NFTs are made up of the silliest theory. Being sarcastic, Gates wondered how images of monkeys solve the world’s problems. Gates made reference to the Bored Ape Yacht Club, which many celebrities have purchased with millions.
Featured image from Pixabay, chart from TradingView.com
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