SEC: NFT May Become Securities
The SEC's most crypto friendly commissioner, Hester Peirce, warned that speculation with the NFT could lead to sad consequences
During a recent cryptocurrency summit, she was asked how she felt about the NFT phenomenon. In particular, selling various objects for large sums.
Examples include Jack Dorsey's first tweet, which sold for $3 million, as well as a painting by digital artist Michael Joseph Winkelmann, known as Beeple, which Christie's sold for $69 million.
Hester Peirce said the SEC, as a regulator, should pay attention to everything about speculation. Therefore, the SEC's sights are on the resale of parts of the NFT. This activity is becoming more speculative, and regulation is becoming a matter of time.
If this continues, NFT will transform from crypto art into an investment facility. They are recognised as securities. So, be aware when buying NFT tokens today to divide and resell for profit.
The commissioner warned that NFT could not be purchased for investment. It's wrong, it's risky. You can lose money. To understand this, you need to remember the boom of the ICO.
There was a lot of investment, but only 15-20% of the projects were successful. And it's not just about blatant fraud. 65-70% of startups after ICO failed for various reasons, and the investments were not justified.
This can also happen with NFT. Hester Pierce urges not to take risks and buy such tokens only for personal use.