NFT and Metaverse Scams: Cyber ​​Security

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This material has been prepared for informational and educational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of the people who receive it.

Purchases, sales and transactions in Non-Fungible Tokens (NFT) or other digital assets and related products are highly speculative and may result in the loss of the entire investment. These products are intended only for persons who are able to bear the financial risk of investments and who do not need liquidity with respect to their investments. Buyers, sellers and users of such digital assets should familiarize themselves thoroughly with such risks and considerations before trading in such other digital assets. Risks and considerations include, but are not limited to: extreme volatility; limited transferability and liquidity; evolving government regulations including tax considerations; and the potential for fraud, illegality, hacking or other disruptions to the blockchain or problems with the use and storage of the “private keys” necessary to access a digital asset.

The information contained herein is from multiple sources believed to be reliable, but is not guaranteed and does not necessarily reflect the views, opinions or advice of Morgan Stanley Smith Barney LLC (“Morgan Stanley”) or its affiliates. Morgan Stanley is not responsible for the information or data contained in this material. It has been prepared without regard to the individual financial circumstances and objectives of the people who receive it. It is not a recommendation to buy or sell NFTs or digital assets, nor should it be used to value NFTs or digital assets. Investors must independently evaluate any particular NFT/digital asset, investments and strategies and should seek the advice of an appropriate third-party advisor for assistance in that regard in which Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide advice about NFTs or digital assets.

Digital assets, sometimes known as cryptocurrency, are digital representations of value that act as a medium of exchange, a unit of account, or a store of value, but usually do not have the status of legal tender. Digital assets have no intrinsic value, and there is no investment underlying digital assets. The value of digital assets is derived from the market forces of supply and demand, and is therefore more volatile than the value of traditional currencies. Investing in digital assets is risky, and transactions in digital assets involve various risks, including, but not limited to, fraud, theft, market volatility, market manipulation and cyber security failures – such as the risk of hacking, theft, programming errors and accidental loss. Additionally, there is no guarantee that an entity that currently accepts digital assets as payment will do so in the future. The volatility and unpredictability of the price of digital assets can lead to significant and immediate losses. It may not be possible to liquidate a digital asset position in a timely manner at a reasonable price.

Regulation of digital assets continues to evolve globally, and as such, federal, state or foreign governments may restrict the use and exchange of some or all digital assets, further contributing to their volatility. Digital assets stored online are not insured and do not have the same protection or safeguards as bank deposits in the United States or other jurisdictions. Digital assets can be exchanged for US dollars or other currencies, but are generally not backed or backed by any government or central bank. Before purchasing, investors should note that risks that apply to one digital asset may not be the same risks that apply to other forms of digital assets. Markets and exchanges for digital assets are not currently regulated in the same way and do not provide the customer protection available in the equity, fixed income, options, futures, commodities or currency markets.

Morgan Stanley Smith Barney LLC does not imply any affiliation, sponsorship, endorsement with/by the third party or any monitoring by Morgan Stanley Smith Barney LLC (“Morgan Stanley”) of information contained on the Site. Morgan Stanley is not responsible for the information on any third-party website or the use or inability to use such website. We also do not guarantee its accuracy or completeness.

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