Chinese Authorities Warn Metaverse Is a Scam

Chinese authorities have described the Metaverse as “attractive and deceptive,” with users prone to losing money if they are unaware of the risk.

Chinese authorities warn that Metaverse is a scam

Following the abolition of domestic cryptocurrency trading and mining, the next concern for the Chinese government is the increase in scams related to Metaverse projects.

The China Banking and Insurance Regulatory Commission has warned the public about fraudulent Metaverse projects. The statement emphasizes that the movements surrounding the Metaverse have made it a prime target for scammers and scammers who illegally raise funds in the name of such projects and steal everyone’s hard-earned cash.

The official warning outlines the various ways scammers can illegally profit by using the metaverse as a premise.

The first and most common form of fraud concerns projects that promise high-tech integration, such as B. Artificial intelligence and virtual reality support. These projects often attract investors by promising high returns. Then the scammers get rid of the investor’s money.

The second most common form of Metaverse scams are Play-to-Win (P2E) blockchain projects, where scammers promise high returns to invest in game tokens and often flee when they achieve a specific goal.

Another well-known scheme the projects use involves the hype of super-reverse properties to encourage users to panic buy.

The Interministerial Conference Office on Dealing with Illegal Fundraising is asking the public to learn more about such projects and to report suspicious activities to the authorities.

Participants in fraudulent Metaverse projects under attractive and fraudulent titles face material damage. The public is asked to draw attention to their detection and protection potential and to watch out for deception.

Despite the country’s sweeping ban on the use and mining of cryptocurrencies, the Chinese government has shown continued interest in NFT and Metaverse projects. Because of this, many tech giants including Tencent, Huwaei, and Alibaba have filed the Metaverse trademark. Shanghai has even included the use of blockchain and metaverse for utilities in its 5-year development plan.

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