A new study by CoinGecko, a digital currency information aggregator, revealed that almost half of NFT holders are in favor of introducing regulations to protect themselves from potential risks.
The survey was conducted between December 2022 and January 2023, with 343 non-fungible token (NFT) holders taking part, and was carried out by CoinGecko researchers in collaboration with the Blockchain Research Lab.
Despite the risks associated with fraudulent liquidity withdrawal schemes (also known as “rug pull”) using NFTs, the opinions of collection token users regarding the regulation of the industry are split.
The results showed that 48.1% of NFT holders believe that regulation is necessary. Of this group, 18.7% favored stricter control over tokens, as they were concerned about the possibility of losing their assets and failing to protect their rights.
Meanwhile, 29.4% of respondents took a neutral stance, without forming a clear opinion on the issue.
On the other hand, 2 out of 10 NFT holders were against the introduction of strict rules for collectible tokens, with 10.2% of survey participants disagreeing with increased supervision, and 12.2% strongly opposing it.
Despite the debate surrounding the regulation of NFTs, analysts noted that NFT owners are aware of the associated risks.
More than half of NFT holders (54.5%) expressed concerns about scams when investing in tokens or potential platform hacks.
However, a significant minority (18.4%) were not afraid of NFT scams, leading CoinGecko analysts to suggest that they were experienced investors who could distinguish worthwhile projects. 27.1% of respondents did not have a particular opinion on this issue.
Regarding their investment behavior, the majority of respondents (69.4%) reported that they thoroughly study NFT projects before buying their tokens. However, 9.6% of investors did not conduct an independent analysis of projects.
The survey also revealed that not all NFT holders understand how digital assets work, with 11.4% of those surveyed having no idea about it, and 19% of respondents admitting that they did not fully understand the technology on which NFTs operate.
Despite this, CoinGecko researchers concluded that people invest in NFTs regardless of their understanding of blockchain technology.
Finally, a report by MarketsandMarkets last year estimated that the NFT market could grow to $13.6 billion by 2027, driven by celebrity and gaming community engagement and the demand for digital art.