The Central Bank of Taiwan has warned the public about the speculative nature of non-fungible tokens and the danger of investing in NFTs, as they may be counterfeit.
The Central Bank of Taiwan has advised investors to exercise caution when dealing with digital collectibles. The regulator mentioned the recent report, according to which only 28.5% of people make a profit when selling NFTs, and a third of the created collection tokens are not sold at all. The Central Bank noted that almost 80% of NFTs are created on the basis of the Ethereum blockchain, and this suggests that they are not digital collectibles, but ordinary crypto assets, transactions with which can be traced.
The Central Bank doubts that NFTs can prove ownership of any asset, since collectible tokens can be created by anyone and used to steal data. So, in May, Hollywood actor Seth Green was the victim of a phishing attack, losing NFTs from the collections of Bored Ape Yacht Club, Mutant Ape Yacht Club and Doodles, and this is not the only example. Therefore, the Taiwanese regulator considers the purchase of NFTs not the most successful investment strategy.
We can say that the NFT sector is divided into “two camps”. Many celebrities are interested in it, despite the possible risks. Recently, actor Anthony Hopkins asked colleagues for advice on buying NFTs, after which he became the owner of several tokens that users gave him. Others criticize non-fungible tokens. For example, Microsoft co-founder Bill Gates called the industry a “fool trap.”
Source: Bits
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