NFT TECHNOLOGY IN FINANCIAL PYRAMIDS

Abstract

Financial pyramids destroy confidence in investment institutions, undermine the financial stability and security of the population. Thus, negatively affect the well-being of people, public welfare. The use of modern digital technologies in the financial sector makes it possible to expand the forms of implementation of these schemes and makes it difficult to detect them. Non-fungible tokens (NFTs) have been attracting significant investor attention lately. The lack of clear understanding of the increase in the cost of NFTs causes discussion and speculation about the possibility of applying NFTs to create pyramid schemes. The objective of the study: analysis of the use of NFT-technologies in the activities of financial pyramids. Research methods: analysis of scientific literature, descriptive method that allows you to convey the specific features of NFT technology, case study. Results and conclusions. The article presents the definition of NFT, highlights the characteristic features, and conducts an etymological analysis of the phrase «non-fungible token». The authors of the article noted the signs of financial pyramids using NFT technology. The project was analyzed using NFT for signs of a financial pyramid. Critical elements that can contribute to the emergence of a financial pyramid are noted, namely: lack of support from project (game) developers, decrease in audience interest in the proposed product, decrease in the quality of the game (lack of development opportunities). The growing popularity of projects using NFT is mainly supported by the creation of a community of like-minded people who actively promote it. In this relation, it is rather difficult to objectively assess the opportunities for obtaining income from investment. The emergence of a large number of projects with NFT makes the decision-making process even more time-consuming and costly.

Keywords

• financial pyramid
• nft technologies
• digital assets
• digital environment
• fraud