In the last two years, NFT digital assets have experienced a great boom. They are commonly used in games Play-to-Earn, which blockchains are adopting to diversify their ecosystem. Despite the current decline in the market, NFTs remain successful. This is what leads us to debate the framing of this asset class.
Insecurities in relation to the NFT transaction
Nowadays, it is quite difficult to have complete confidence when making online transactions. Indeed, scams are emerging from everywhere, and many dishonest people always find a way to steal from others. NFT digital assets do not stand out from the crowd in the financial market. There are investors who lose a lot of money, following attacks on their wallet NFT.
This insecurity is manifested all over the world, and this is especially the case for Hong Kong. The territory has established some rules aimed at improving the safety of NFT users. Indeed, the risks have become more and more important, as the value of NFTs increases. It is not possible to forge a token, but it is still relatively easy to extract it from a file.
In addition, there is also wash trading. It is the act of artificially increasing the value of a crypto asset by using several accounts to trade with oneself. This technique has made millions of dollars for malicious people. There are also other forms of scams that affect NFTs, such as fake marketplaces, phishing, carpet pulling, etc.
Strict regulations to remedy the situation?
One way or another, the current situation in the financial market of NFTs hides a real opportunity. This is especially the case for blockchain games. For some, the framework could stifle technology, and therefore slow down the very evolution of these assets.
For others, the regulation of NFTs would bring better security, whether for investors, but also for players. The European Commission’s MiCa proposal goes in this direction. She suggests that many digital assets should be regulated, and some provisions could be applied to NFTs. This bill is still a proposal and we will have to wait for its validation to see the rules adopted.
At the same time, in the United States, the DRY regulates digital assets like traditional assets. The rules in force are therefore applicable to NFTs.
Taking into account the current situation of the financial market for NFTs, it goes without saying that regulation would be welcome. Insecurities are increasing day by day, and many forms of scams are constantly appearing. However, the current freedom leaves blockchain game developers with the opportunity to make a profit. So what would be their position in relation to this?
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