https://ift.tt/CgqbcH0 Regulators Warns About Scams Of Metaverse Projects

China is one major country where the trend of cryptocurrencies evolved at a rapid pace and the adoption was huge. Besides, China has more crypto users when compared to all over the world. After the elimination of crypto trading and mining in China, the government has come up with new alerts concerning the recent scams in the industry.

The Chinese government and regulators have warned the users to be aware of the scams of metaverse projects. Currently, the rise of metaverse projects is huge and the interest in the metaverse is exponentially growing. Using this scenario, the scammers are targeting innocent public claiming to be potential metaverse projects, and looting the fund. 

Significantly, the officials have warned the users about the different ways of scams through which scammers are making a profit. The primary way of scam is projecting metaverse projects as potential ones with high-tech integration, like AI and VR. These projects claim to be innovative and featured ones, collect funds from investors and run away.

The common form of scam in the metaverse projects is as mentioned before such as portraying promising projects and fleeing with funds. Consequently, the second type of scamming is blockchain-based Play-to-Earn projects. Which eventually claims to return high profits for investors if invested in gaming tokens. Then abscond when the crew reaches the set-up goal of profits. 

Moreover, the Office of the Inter-Ministerial Joint Conference on Illegal Fund Raising Disposal has given a warning. They have requested the general people to be more alert of such programs and to report any suspicious activity to authorities. Besides, the regulators mention that the fraudulent activities are moved under the name of “Metaverse”, which seems attractive and deceptive.
However, the country totally banned the usage of cryptocurrencies but still had leverage on NFTs and metaverse projects. This is the fundamental reason why some metaverse projects have rushed to China to register metaverse trademarks. As a result, the government is concerned about the scams that come out of the trend.