Study shows 72% in UAE positive on NFTs’ future, 42% view it as tech hype

According to a recent Kaspersky study, non-fungible tokens are perceived differently by individuals in the UAE. (NFTs). The findings showed that 72% of respondents in the UAE believe that NFTs will become more common, significant, and useful across a range of industries. Unexpectedly, 42% of respondents think NFTs are just a technology fad that won’t last very long.

NFTs are digital assets created in the form of music, art, texts, gaming content, avatars, videos, luxury items etc. They can be bought and sold online using cryptocurrency. NFTs have gained immense popularity because each one is unique, therefore irreplaceable. It allows people to own the original product because of its unique identifying code and built-in authentication which serves as proof of ownership. Echoing a positive sentiment towards owning distinctive and original digital collectables, 77% of respondents in the UAE think NFTs can offer a new progressive way of trading digital assets. On the same note, 72% believe that it can ensure the uniqueness of digital assets and contribute to intellectual property ownership.

The essential element for NFTs to work is the utilization of blockchain. To demonstrate a record of ownership history, code is inscribed onto digital assets and then recorded via a blockchain network. Nevertheless, incorporating multiple layers of technology to create NFTs has increased intricacies and uncertainties about what it is and how it can be utilized. Kaspersky’s study indicates this clearly by stating that despite 82% of respondents in the UAE having heard of NFTs, 21% of them have no understanding of it and lack knowledge about its usage.

The risk of dealing with financially motivated cyber risks in this area is increased by a lack of knowledge. More than half (67%) of UAE residents who have heard of NFTs believe it to be a high-risk venture with the potential for sizable returns down the road. However, 35% of people believe that NFTs are a technology tool that is used to defraud people online.

Emad Haffar, Head of Technical Experts, Middle East, Turkey and Africa at Kaspersky said “There is no denying that every technology has its set of vulnerabilities. NFTs are no exception and people may be exposed to cyber risk in this space. We want to ensure people invest in NFTs with caution and are careful when it comes to any news or speculations on this topic. The first step to making any investment is to get as much information as possible from credible sources, analyze all the risks involved, and remember that trending technology advancement have always held a particular appeal for cybercriminals.”

To avoid falling victim to an NFT scam, Kaspersky recommends:

• Exercise basic cybersecurity practices, such as the use of strong passwords and two-factor authentication

• Install a trusted security solution like Kaspersky Premium.

• It is safer to store our NFTs in a secure wallet.

• Before investing significant sums of money in NFTs, initially carry out a small transaction to make sure everything is working as it should.

• Ignore spam, such as DMs or odd NFTs that strangers send to your wallet, which can have malicious contracts attached.

• Do thorough research on how to keep your information and NFTs safe.