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Taiwan’s Central Bank Finds NFTs As Inappropriate, Warns General Public To Stay Away

Non-fungible tokens have risen sharply in the digital space, but there are some concerns about their growth. More people are embracing NFTs and their many opportunities in the virtual world. The focus is on some uses and applications of NFTs. Some brands use tokens for advertising, while others use tokens to build and engage a strong user community.

However, recent reports of fraud using irreplaceable tokens are increasing. Some strategies and frauds go back to the use of NFTs. Such uprisings have attracted the attention of various governments, regulators and financial institutions.

There are rumors and beliefs that many fake transactions occur in NFT spaces. In addition, a recent report disclosed a warning from the Central Bank of Taiwan, which shares the same opinion on fake NFT transactions.

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Taiwan News reports that the Central Bank of the Republic of China is skeptical about NFT investment. The top bank of the country has issued its statement based on a survey of the NFT collection. According to the report, the profitability of NFT investments was recorded to be less than 30% among investors. In addition, many of the artwork NFTs remained unsold.

NFT collection can be suspicious

In that debate, banks suspect ownership certification by collectibles. NFT definitions are in physical and virtual items.

Therefore, once an investor acquires an NFT collection, they need to prove ownership and verify their credibility. However, banks claim that anyone could develop an NFT to steal investor data, which could involve suspicious creators.

Last year, Taiwan’s central bank confirmed significant growth in the NFT market. As of 2020, there were about 75,000 traders hovering through NFT transactions in the market. That number gradually increased to 2.3 million participants in 2021. However, the overall price decline in crypto space also affected NFT performance.

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Recall the case of Logan Paul, a famous American YouTuber who appeared in the NFT space last year. Through a partnership with Bondley Finance, the company planned to develop an NFT collection for his Pokemon Breakbox.

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He returned to the sector a few months later, but some investors were skeptical of his move. Then there was a allegation of stock image photo shopping that he used for the Cryptozoo collection. However, according to the report, an unquestioned investor was still buying an NFT that he sold for millions of dollars.

In a similar report, Microsoft co-founder Bill Gates warns NFT investors to pay attention to transactions.

According to his explanation, NFTs consist of a larger idiot theory. Ironically, Gates wondered how monkey images would solve the world’s problems. Gates mentioned the boring Ape Yacht Club, which many celebrities bought for millions.

Featured image from Pixabay, chart from TradingView.com

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