This article explores the need for regulatory oversight on NFTs, which have emerged as high-performing assets of the decade.
The use of NFTs has exploded lately, making them one of the best-performing assets of this decade. NFTs have failed to obtain their due share of regulation while carrying identical hazards, in contrast to its blockchain cousin, which frequently clashes with regulatory organizations.
Governments from all over the world are slavishly constructing a regulatory framework for NFTs. A recent survey found that NFT holders’ opinions on the need for increased oversight are divided.
The top cryptocurrency data aggregator in the world, CoinGecko, released a report on April 6 that provided information about NFT regulation, hazards, and holders’ comprehension of the virtual asset.
Despite rug pulls and wash trading, CoinGecko’s survey found that NFT Holders disagree about regulatory intervention. 48.1% backed more oversight, but 29.4% opposed excessive regulation. 29.4% of respondents were undecided, indicating they were open to regulation.
More than half of the respondents said they were afraid to invest in NFTs when asked about the risks in the industry. According to anecdotal data, the majority of holders have fallen victim to at least one scam or hack.
The analysis by CoinGecko also showed that more people are aware of the dangers and are implementing the appropriate safety measures. The majority of respondents—roughly 70%—said they invested money in NFT projects after conducting their due diligence. Less spam and hacking victims might result from this. However, 30% of those polled had conflicting views on conducting their own research and favoured making impulsive purchases.
Surprisingly, the poll also revealed that not all NFT owners are familiar with how digital assets function. Even though NFT utilization has increased, only 70% of the subjects said they comprehended NFTs. However, 11.4% of respondents claimed they didn’t know how the digital asset operated.
On the other hand DappRadar claims that in Q1 2023, when users invested hundreds of millions of dollars in the industry, the amount of metaverse NFT trading reached its high.
CoinGecko analysis shows that as more people become familiar with the technology, NFT adoption is increasing. The poll also revealed that people are increasingly aware of the hazards and do their homework before investing, indicating the industry is heading in the right direction.