“Consumers face a very real possibility of losing all their money if they buy these assets,” the statement said. Regulators have also said that consumers should pay particular attention to misleading advertisements that promise fast or high returns, especially those that look too good to be true.
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They also pointed out that most cryptoactive assets are not regulated in the European Union, so consumers cannot rely on the rights and safeguards associated with regulated financial services.
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According to regulators, when considering investing in cryptoactive assets, consumers should ask themselves whether they can afford to lose all the money invested. They should also consider whether they understand the characteristics of cryptoactive assets and whether the entities they deal with in connection with this investment are credible.
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The growing popularity of NFT
Cryptoactive means the digital capture of value or rights that can be transferred and stored electronically using shared registry technology or similar technology. So we are mainly talking about NFT tokens, which have recently enjoyed ever-increasing popularity.
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NFT stands for Non-Fungible Tokens. It is a new form of digital ownership, which builds on blockchain – a digital ledger. Incidentally, cryptocurrencies, such as the best-known bitcoins, also use this.
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The NFT is used to prove ownership of a particular thing that only exists in the virtual world. Typically, these can be works of art, famous memes, game items, but also historical moments, such as sending the first SMS message. Because NFTs are created as unique, they often attract collectors and investors.
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In addition, NFT tokens are tamper resistant. People can store them in their own blockchain wallet, which is basically similar to a digital wallet.
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