This past year has been the NFT market’s greatest year of growth, making the market cap now worth over $7 billion. The “Non fungible token” value had shot to 2.5 billion dollars in the first half of 2021 after only doing a fraction of that the previous year. Despite the total value of the market, NFT sales have been somewhat sporadic with occasional outbursts of growth rather than a continuous increase over time.
There is also still lots of work to be done regarding legal and regulatory issues pertaining to authentication, copyrights, intellectual property rights, and ownership of the token vs. ownership of the content. Since NFTs are non fungible they are not liable to have security regulations in many countries. This makes them “vulnerable to copyright theft, unauthorized replication and fraud, and storage failure” JP Morgan (global leader in financial services) said in a Thursday note. Apart from the legal danger, NFTs still have to get past issues like hacking and platform risks related to governance. This is where it becomes important to have cyber security in place. If you or your business are planning on taking the right measures in applying proper cyber security, Davis Cyber Law can help you ensure that you are taking all the correct precautions!