A probe into non-fungible tokens has been launched by the House of Commons Committee on Digital, Culture, Media, and Sport in the United Kingdom (NFTs).
The DCMS Committee invites public opinion on the advantages and disadvantages of NFTs. It will be decided by parliamentarians (MPs) what potential risks NFT investors may face.
The committee claims that NFTs might be “a bubble” and that investors who are “greater fools” run the risk of losing their money. Significant drops in NFT trading volumes and prices that happened earlier this year were mentioned in the company’s statement.
The NFT of former Twitter CEO Jack Dorsey’s very first tweet was specifically brought up by the DCMS Committee. This NFT famously lost almost all of its value after being sold for as much as $2.9 million.
The committee’s chair, Julian Knight, asserts that there is a genuine danger that the bubble may eventually pop.
Although there is currently no regulatory framework in place for NFTs in the UK, the new inquiry will allow the government to learn more about potential approaches from the general public.
After Tory MPs chose Rishi Sunak as the country’s next prime minister last month, the United Kingdom is expected to become more crypto-friendly. Sunak proposed launching an official NFT collection as part of the Boris Johnson administration earlier this year, but the idea was widely panned.