Taiwan’s Central Bank Warns Citizens about NFTs

Taiwan’s Central Bank Warns Citizens about NFTs

The Central Bank of Taiwan has issued a warning to its citizens regarding the risks associated with NFTs as a mode of investment.

According to a survey, only about 30% of individuals make a profit when selling an NFT. A third of all NFTs produced fail to even sell. 

The bank also doubts whether NFTs can be used as a proof of ownership since they can be easily copied. 

Moreover, a report of the Central Bank’s board of supervisors meeting titled “DeFi and NFT Development and Risk Issues”, claims that the NFT market is full of fake transactions, driving up the price of NFTs.

NFTs were thrust into the spotlight in 2021, as the number of NFT traders jumped from 75,000 in 2020 to 2.3 million in 2021.

One of the most expensive NFTs ever sold was by marketing genius and artist Beeple. His painting “Everydays – The First 5000 Days” was sold for for $69 million.

However, the NFT market has finally slowed down with a report from Chainanalysis stating that from the 1 million accounts trading in May, the figure has fallen down to just 491,000 accounts actively trading now.

Read Also: Bill Gates Bashes Crypto, Says NFTs are a ‘Greater Fool Theory’

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