🎓Why Sigmate?
Lack of Platform
Currently, NFT investors rely on individual subjective data created by "influencers" who independently provide information in messenger-based communities such as Discord, Medium, Twitter, and Telegram.
In this situation, investors use various media to obtain information about NFT, and investors’ anxiety about the market is prevalent as they rely on unclear messenger-based media for specific information or un evaluation of NFT.
In addition, there are many cases where investors face 'fraud' and 'fraud projects'. Because there are lack of verification process in sharing information. For example, there were many cases of Rug-pulls even though they had a fancy roadmap, fancy advertisements and even retweet from influencers and more.
Low Market Reliability
Since the NFT market is early stage market, there are lack of laws and regulations. Therefore information asymmetry is allowing frauds to earn money. For example, copying fraud, in which existing intellectual property rights (IPs) that are not registered as NFTs are newly registered as a NFT by a third party, or any content that is already registered as NFT is copied and published, is creating confusion and damage for newly investors.
Furthermore, there are frequent cases of deceiving investors, such as stealing and exploiting card and blockchain wallet information by impersonating NFT exchanges or employees, and rugs that disappear after receiving investment for NFT projects.
For investors, to avoid being subjected to impersonation fraud and Rug-pools, a system must be established to carefully examine and verify the history of the projects and the team. However, it is difficult for each investors to obtain fraud-related information, and many NFT investors still face these risk due to the problems of the messenger-based community as mentioned above. This has led to greater distrust of the NFT market and acts as a hindrance to the total growth.
High Entry Barrier
These problems hinder the inflow of new investors, requiring high barriers to enter the market. New investors are likely to get tired and lose interest in collecting distributed information through multiple messenger-based communities.
Users who experience high fatigue and tiredness that do not match the revenue from the market, will take no more interest in NFT. In addition, people experience lack of background to which information is reliable and which poses many threats.
Overall, high barriers to entry will certainly hamper the growth of the NFT market.
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