The myth of getting rich or a financial trap? Be wary of NFT digital collection scams

In recent years, driven by the metaverse concept, the NFT market has continued to heat up. Statistics show that at the end of 2020, the global NFT market value was only US$317 million, while in 2021 the global NFT market value reached US$16.891 billion, a year-on-year increase of 4440%. The transaction volume in 2021 was US$17.695 billion, a year-on-year increase of 21350%.

NFT (Non-Fungible Token) refers to non-homogeneous tokens in the form of digital pictures, music, videos, 3D models, and digital souvenirs. It is widely called "digital collection" in China. For example, the National Museum of China has developed digital collections based on the theme of four national treasure-level cultural relics, including the Siyang Bronze Fang Zun, which users can "visit" online.

Previously, NFT has attracted everyone's attention with "sky-high price" trading events many times. As an innovative application of blockchain technology, NFT has shown certain potential value in enriching the digital economic model and promoting the development of the cultural and creative industry. But behind the fresh gameplay and the hot market, there are also various hidden risks such as speculation, fraud, money laundering, and illegal financial activities.

Some digital collections have been hyped to hundreds of times the original price, and if no successor can be found, the money will be lost;

Fake websites and links directly invade your wallet and steal your assets;

The digital collection platform ran away, the official account was blocked, and there was nowhere to cry;

Private transactions, give money but not "goods", give "goods" but not money;

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In this regard, in order to protect the legitimate rights and interests of consumers and maintain the healthy ecology of the industry, on April 13, the Internet Finance Association of China, the China Banking Association, and the Securities Association of China jointly issued an initiative on preventing NFT-related financial risks, resolutely curbing NFT financial risks. The trend of securitization and securitization, and strictly guard against the risks of illegal financial activities. It also calls on consumers to establish correct consumption concepts, enhance self-protection awareness, consciously resist NFT speculation and hype, be vigilant and stay away from NFT-related illegal financial activities, and effectively safeguard their own property safety.