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Metaverse Is A Fraud, According To Chinese Officials

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Following the fall of domestic cryptocurrency trading and mining, the Chinese government’s next concern is a surge in frauds involving Metaverse ventures.

The China Banking and Insurance Regulatory Commission has issued a public warning regarding bogus Metaverse ventures. According to the statement, the Metaverse’s movements have made it a popular target for spammers and scammers who illegally gather funds in the name of such projects and steal everyone’s hard-earned money.

The official warning describes the different ways scammers might benefit unlawfully by utilizing the metaverse as a premise.

The first and most typical type of fraud involves projects that promise high-tech integration, such as B. AI and virtual reality support. These enterprises frequently entice investors by offering large profits. The crooks then steal the money from the investor.

The second most popular type of Metaverse fraud is Play-to-Earn (P2E) blockchain initiatives, in which scammers promise huge profits in exchange for investing in-game tokens then frequently depart once they hit a certain target.

Another well-known method employed by the projects is the promotion of super-reverse features in order to entice consumers to make rash purchases.

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The Interministerial Conference Office on Illegal Fundraising is urging the public to learn more about such projects and to report any questionable activity to authorities.

Participants in bogus Metaverse initiatives with enticing and deceptive titles risk financial loss. The general people are requested to call attention to their detection and protection potential, as well as to be on the lookout for deception.

Despite the country’s blanket ban on cryptocurrency use and mining, the Chinese government has expressed persistent interest in NFT and Metaverse projects. As a result, various tech behemoths, including Tencent, Huawei, and Alibaba, have registered the Metaverse trademark. The usage of blockchain and metaverse for utilities has already been included in Shanghai’s 5-year development plan.