Wizard of SoHo, the former Wall Street veteran turned Philosopher and NFT/Crypto expert, advises new investors to adopt a judicious approach before putting their hard-earned money into NFTs. The Chief Alfa Officer of Illiquid Capital, Wizard of SoHo highlights the recent case of NFT fraud, where two Frosties NFT operators promised investors tokens, giveaways, rewards and more, and tried to vanish with $1.1 million in investor funds after quietly abandoning the project.
While the world of NFTs appears irresistible with stunning artwork and thriving communities, Wizard of SoHo believes it is important to tread with caution and avoid overhyped NFT projects that could turn out to be scams. He also says, “The recent NFT fraud case may result in regulations in the NFT space,” which is a good thing for the long-term future of the industry.
Constructive Regulation can Favor NFT Investors
In recent times, investor interest in NFTs has skyrocketed. Clearly, wherever huge money is being made fast, investors will be excited – and swindlers will find an opportunity to commit fraud. Wizard of SoHo knows from his years of experience as a financial guru how fraudsters looking for a payday will go to any length to deceive gullible investors.
He believes that constructive and meaningful regulation in the NFT space should be aimed at protecting investors against the risk of fraud. NFTs represent a promising new era for millions of aspiring financial investors. Healthy regulation should serve the people’s aspirations, and not stifle the growth of the NFTs, he says.
In the view of Wizard of SoHo, the rules and regulations that apply to traditional real estate investments may be used as a framework for NFT regulation to promote the industry. The goal of regulators should be enforce good business practices so that fraudsters and scammers do not find much room to proliferate.
What Should NFT Marketplaces do to Minimize the Risk of Fraud?
To help minimize the risk of fraud in the NFT space, Wizard of SoHo lists a few suggestions for NFT marketplace operators as follows:
- Do not allow inauthentic or fraudulent NFTs, NFTs that have not obtained appropriate permissions, or NFTs that include offensive or illegal content.
- Be mindful of the potential earnings claims that you make in order to attract NFT buyers and sellers to your marketplace.
- Inform people about your data privacy and confidentiality policies and practices when you are running an NFT marketplace.
- Stay in compliance with the state laws related to consumer rights and consumer protection.
- Before even more diligent about your compliance efforts if your NFT marketplace appeals to minors.
Wizard of SoHo is helping create investor awareness about NFTs through his social media channels for the larger good of the industry. Clearly, the future of NFTs is bright when more people like him come forward to protect and promote the growing world of NFTs.