NFT (Non-Fungible Token) is one of the concepts that has recently attracted much attention. As the market continues to heat up, many related works have been auctioned at high prices, and more and more celebrities have joined in, making more people begin to understand NFT. However, the reporter learned from the Haikou Central Branch of the People's Bank of China that NFT products, like other virtual assets, also have high risks, and related investments need to be cautious.
So, what is an NFT? NFT stands for Non-Fungible Token, which uses blockchain technology to mark the ownership of specific digital assets, such as electronic images, artworks, music or movies. Each NFT contains unique identifying information recorded in a smart contract, giving it uniqueness. In addition, NFTs cannot be divided, just like you can't give part of a concert ticket to someone else. A portion of the ticket is worthless and cannot be redeemed.
However, as an application of blockchain technology, the financialized NFT market is easily associated with illegal activities such as fraud, speculation, and money laundering, which can lead to chain risks. At the same time, there are still some risks in the NFT investment market, such as whether the NFT trading platform is compliant, whether the NFT issuer is involved in the initial token offering (ICO), and whether it infringes on copyright.
The People's Bank of China Haikou Branch reminds investors to establish correct investment concepts, enhance self-protection awareness, consciously resist NFT speculation, and be vigilant and stay away from illegal financial activities related to NFT. Only by investing prudently can you ensure the safety of your own rights and property.
