NFT’s Have The Potential For Financial Scams

BACKGROUND:

BBC are reporting on this morning that NFT-based fantasy football card firm raises $680m.

The BBC do report on NFT worries:

“NFTs are also controversial. Depending on the technology used, maintaining a blockchain requires considerable computing power with a sizeable carbon footprint.

As in traditional investing, financial impropriety and crime are a risk, but the protections for consumers are generally less robust.

There are also concerns about a lack of regulation. Recently OpenSea, the largest digital collectable marketplace, revealed an employee used inside knowledge to buy NFTs before they were promoted on the website. Insider trading – where individuals use non-public knowledge about a company for financial advantage – is illegal in most regulated markets. But the NFT market does not have such restrictions”.

Experts Comments

September 22, 2021
Jake Moore
Cybersecurity Specialist
ESET

NFTs are still firmly in their infant phase which means regulations are lacking and scammers are lurking. The potential for financial scams or mishaps are huge with little insurance or fallback in place should it all go wrong. Coupled with there being no physical product being purchased, victims may even remain none the wiser after a con has taken place. People should remain extremely careful when purchasing NFTs, even when buying from known, reputable locations and exercise caution at all

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NFTs are still firmly in their infant phase which means regulations are lacking and scammers are lurking. The potential for financial scams or mishaps are huge with little insurance or fallback in place should it all go wrong. Coupled with there being no physical product being purchased, victims may even remain none the wiser after a con has taken place. People should remain extremely careful when purchasing NFTs, even when buying from known, reputable locations and exercise caution at all times.

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