IMF Warns of Tokenization Market Flash Crash Risk Amplification, Governments to Intervene in Regulation
BlockBeats News, November 28th, according to Cointelegraph's report, the International Monetary Fund (IMF) issued a new warning stating that the tokenization market faces an increased risk of a flash crash, prompting governments worldwide to intervene in regulation. The IMF stated that while the tokenization market can make financial transactions faster and cheaper, this technology also brings new systemic risks, as automated trading may lead to increased market volatility and heightened flash crash risks. Complex smart contract chains may react like a domino effect under market pressure, transforming localized issues into systemic shocks.
The IMF predicted that based on historical experience, governments worldwide will not remain on the sidelines in this significant monetary evolution and will play a more active role in the tokenization field in the future.
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