Meta has recently announced on Facebook and Instagram their plans to integrate the creation, purchase and sale of non-fungible Tokens, the NFTs . According to a report published by the newspaper The Financial Times, the company is developing a prototype of the feature that will make it possible for users to mint tokens on their profiles.
This asset NFTs has been gaining ground on other digital platforms. Twitter is developing ways to display these items supported by blockchain and Reddit has released its own collection of NFT avatars for users.
A NFT is a way to claim ownership of a digital item such as a JPG image or a GIF, via blockchain. While there are claims that these assets embody decentralized forms of ownership, their legitimacy rests on the recognition of existing online platforms.
If Twitter or Instagram allows one user to copy and paste an image created by another, how would it be possible to determine who really owns it? But if companies start to enforce property rights, such as a NFT registered with a blockchain code they can become legitimate digital assets (at least within each platform).
Like cryptocurrencies, these cryptoassets are much questioned and criticized for aspects related to security and the difficulty in guaranteeing creation and ownership (in addition to the highly speculative nature that makes values fluctuate at an impressive speed). By adopting resources and tools that legitimize transactions, technology companies support NFTs and collaborate to solidify these still controversial assets in the digital world.
Cryptoassets, such as tokens and coins, divide opinion around the world. Above all, there is much uncertainty about how safe it is to invest and transact with these assets. And we are still far from reaching a consensus.
New rules for cryptocurrency transactions
Concerned that consumers could invest their savings in this asset without having a clear understanding of what they are buying and how they work, UK authorities have announced the creation of legislation so that “qualified cryptocurrencies” are regulated under the Financial Conduct rules. Authority (FCA), the regulatory body for the financial sector, as well as equities and insurance products.
Although cryptocurrencies are regulated, some analyzes have concluded that advertising these assets often exaggerates the advantages offered and rarely warns about the risks in this type of investment, which many people fail to clearly understand. The British authorities stressed that the new rules aim to guarantee consumer rights while encouraging innovation in the cryptocurrency market.
The new rules should not include non-fungible tokens, which are still very much focused on digital art objects or collectibles. This raises doubts as to whether they could be classified as financial products. The emergence of new types of non-fungible tokens, however, is causing the boundary between financial services products and digital collectibles to blur.
The concern with this market is not restricted to the United Kingdom. Spain’s National Securities Market Commission also announced the adoption of new rules for crypto asset ads. This is a topic that, without a doubt, is worth monitoring and following its next steps in Brazil and in the world.