“Consumers face a very real possibility of losing all of their money if they purchase these assets,” the statement said. Regulators also said consumers should be particularly alert to misleading ads promising quick or high returns, especially those that sound too good to be true.
They also point out that most crypto assets are not regulated in the European Union, so consumers cannot rely on the rights and guarantees associated with regulated financial services.
According to the regulators, when considering investing in crypto assets, consumers should ask themselves if they can afford to lose all the money invested. They should also consider whether they understand the characteristics of crypto assets and whether the entities they are dealing with in connection with this investment are credible.
The growing popularity of NFT
Cryptoactive means the digital capture of value or rights that may be transferred and stored electronically using shared logging or similar technology. So we are mainly talking about NFT tokens, which have recently enjoyed increasing popularity.
NFT stands for Non-Fungible Tokens. It is a new form of digital ownership, based on the blockchain – the digital ledger. By the way, cryptocurrencies, such as the more famous Bitcoin, also use this.
NFT is used to prove ownership of something that exists only in the virtual world. Usually, these can be works of art, popular memes, and game items, but also historical moments, such as sending the first SMS. Because NFTs are created as unique, they often attract fundraising enthusiasts and investors.
In addition, NFT tokens are tamper-resistant. People can store it in their own blockchain wallet, which is basically similar to a digital wallet.
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