SNEAK PEEK
- A report cited on June 20 referred to the NFT market as full of fake transactions.
- Solely 28.5% of people make revenue from NFT, and one-third of NFTs produced do not sell.
- Taiwan’s Central Bank warned about cryptocurrency asset fraud in March.
Taiwan’s Central Bank has warned its public regarding the risks associated with NFTs. According to a report cited on June 20, the NFT market is nothing but full of fake transactions. As per the report, only 28.5% of individuals earn profit from selling non-fungible tokens. Moreover, one-third of the non-fungible tokens are never sold.
The report also mentioned that most of the NFTs are 80% part of the Ethereum blockchain, meaning they are a form of cryptocurrency with a blockchain that keeps track of everyone who holds and trades the asset.
It further stated about being doubtful whether or not an NFT can recognize ownership because it can be produced by anyone and can be used to steal data. Moreover, it allows people to copy or claim ownership by simply selling a video or GIF as an NFT, like in the case of YouTube sensation Logan Paul, who photoshopped stock images for his cryptocurrency project, Cryptozoo.
In 2020, there were 75,000 NFT buyers; 2022 reported, up to 2.3 million buyers. Furthermore, the value of the NFT market soared by 21,000% during the same period. However, some observers have concluded that the NFT market has imploded. Also, a blockchain analytics firm said that during the beginning of 2022, about 1 million accounts were buying or selling NFTs, but currently, only 491,000 are trading.
Even upon gaining worldwide popularity, NFTs remain the target of certain people, firms, and agencies. A few days back, Bill Gates mocked them by saying that Crypto Projects Like NFTS Are Greater-fool Theory.
