NFTs sold as "land" on Metaverse platforms (Decentraland, Sandbox, Otherside) are subject to large investments.
Legal Quality
- Virtual land is not real property
- License granted by the platform
- If the platform is closed, the value is zero
- Use represented by NFT right
Risks
- Platform bankruptcy / closure
- Smart contract vulnerability (hack)
- Regulatory intervention
- Market fluctuation
- Lack of liquidity
Platform Terms
- Depending on terms of service
- Platform may make unilateral changes
- Account can close
- No "property" guarantee
Tax
- Trade gain: income tax
- Commercial activity: VAT + KV
- Declaration obligation
Fraud
- Fake land NFTs
- Claims of "quickly gaining value"
- Pump-dump schemes
- TCK art.158/1-f fraud with information system
Practical Recommendations
- Research the platform before investing
- Invest only the amount you are willing to lose
- Do not believe promises of fixed income such as "lawyer minimum wage tariff"
- Make your tax declaration (for legal liability)
Web3 and technology law lawyer recommended.