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The Metaverse, while it has tremendous potential to provide legitimate business opportunities, can also serve as a window for scams that target unsuspecting individuals.
That’s the justification given by Texas State Securities Board Director Joe Rotunda in light of the decision he made together with his counterparts in Kentucky, New Jersey and Alabama to immediately stop Slotie’s sale of non-fungible tokens or NFTs.
Slotie is a virtual casino that leverages emerging technologies such as the Metaverse – a digital world where interaction between participants are enabled to facilitate transactions such as purchase, gaming and now, even gambling.
The virtual gambling center that is the subject of the emergency cease-and-desist order started its operations in October last year and is believed to have already sold 10,000 NFTs.
Slotie’s Alleged Metaverse Crimes
Law enforcement officials say the owners of the virtual casino have been exerting efforts to invite investors that will take part in illegal metaversal gambling operation.
Moreover, Slotie has failed to provide vital and accurate information such as company address, contact numbers or even just an email address to the purchasers of its NFTs.
Another fault of the Metaverse-based gambling house is its failure to inform regulators of its assets and liabilities as well as revenue and other finance-related information.
As a result of the motion made by the securities board directors of the four aforementioned U.S. states based on these deficiencies, Slotie has been prohibited to conduct sale of its NFTs.
Meanwhile, the virtual casino is given up to 31 days to request for trial should it decide to contest the stoppage orders.
Metaverse And NFTs: Fertile Ground For Scams
The Metaverse market is already valued at $61.8 billion this year and is forecasted to grow tremendously over the next five years, bringing its overall market cap to nearly $428 billion.
The NFT market, on the other hand, has a 2022 valuation of over $3 billion but is expected to reach $13.6 billion in 2027.
With these two emerging technologies having billions of market capitalization right now and are predicted to grow even more as years go by, it only makes sense that investors try the best way to be involved and not miss out on an incredible opportunity.
However, the lucrative nature of these two industries could also attract fraudsters who will do just about anything to earn easy money and disappear into thin air afterwards.
It’s a good thing regulators are keeping a close eye on these innovations, acting as checks and balances to their unpredictable and risky environment.
Crypto total market cap at $865 billion on the daily chart | Featured image from VoipReview, Chart: TradingView.com