Risks of Investing in NFTs

Market Volatility – NFT prices can fluctuate wildly, leading to significant financial losses

Lack of Liquidity – Reselling NFTs may be challenging due to limited demand in niche markets

Scams and Frauds – Fake NFTs and phishing attacks pose significant risks to investors

Uncertain Regulation – Legal frameworks for NFTs are still evolving, creating potential compliance issues

Valuation Challenges – Determining the true value of an NFT is often subjective and speculative