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NFTs are used by elite to launder money, says veteran

Non-fungible tokens, or NFTs, attracted attention in 2021. More precisely, NFTs captured the attention of the lay public for their high selling prices. In this scenario, many investors decided to try their luck, buying NFTs in the hope that one of them will sell at a high price.

NFTs are used by elite to launder money, says veteran

NFTs are used by elite to launder money, says veteran (Image: Scalable)

However, according to the controversial analyst known as Mr. Whale, the odds are slim. For him, behind the scenario of “bored rich people spending money”, there is a “sinister money laundering scheme”.

Mr. Whale is known for controversial opinions, and this one is no different. In a recent article published on Medium, he argues that the elite of the cryptocurrency market uses NFTs to turn their “illegal profits” into something legal.

All this considering the nature of an NFT. A non-fungible token, especially in the art business, has a subjective price. What is attractive to one collector may not be attractive to another, so it is normal for prices to vary.

This is how it happens, for example, in the traditional art market. However, Mr. Whale claims that the popularity seen in 2021 (since NFTs have been around since 2014) was caused by ulterior motives.

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“It’s an increasingly popular way to buy digital art, launder money and evade surveillance. Everyone can see a lot of these images for free, so why spend millions on them?”, he says in his text.

The analyst then says he has no doubt that governments are already waking up, mentioning the possibility of regulations on the way.

“Although many NFT exchanges do not have compliance procedures, this will change in the future,” believes Mr. Whale. In any case, Mr. Whale is interested in how the NFT market will develop in the future.

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