Practice Test Geeks(CCE) Certified Cryptocurrency Expert Practice Test
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NFTs, Tokenization, and Digital Assets Flashcards

7 cards from real CCE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is the primary legal challenge when an NFT represents ownership of a physical asset like real estate?

    Answer: On-chain ownership must still be reconciled with off-chain legal title systems

    NFTs representing physical assets face a bridging problem: blockchain ownership records are not automatically recognized by traditional legal title systems, requiring off-chain legal agreements.

  2. Which ERC standard introduced a semi-fungible token that can behave as both fungible and non-fungible depending on context?

    Answer: ERC-1155

    ERC-1155 is a multi-token standard that supports both fungible and non-fungible tokens within a single contract, enabling batch transfers and hybrid asset types.

  3. A collector purchases an NFT of a digital artwork. What does the collector typically NOT receive by default?

    Answer: Copyright or intellectual property rights to the underlying artwork

    NFT ownership transfers the token itself but not the underlying copyright unless explicitly assigned in a separate legal agreement.

  4. In the context of real-world asset (RWA) tokenization, what does 'fractionalization' primarily enable?

    Answer: Dividing ownership of a high-value asset into smaller, tradeable units

    Fractionalization allows a single high-value asset, such as commercial real estate or fine art, to be divided into many tokens so more investors can participate.

  5. What is 'NFT wash trading' and why is it a concern?

    Answer: Buying and selling an NFT between related wallets to artificially inflate its price history

    Wash trading involves coordinated self-dealing transactions to create a false appearance of demand and price appreciation, misleading genuine buyers.

  6. Which storage approach poses the greatest long-term risk to NFT metadata integrity?

    Answer: Storing metadata on a centralized server referenced by a mutable URL

    A mutable URL pointing to a centralized server can change or go offline, causing the NFT to point to missing or altered content—commonly called 'rug pulling' the metadata.

  7. When a DAO votes to tokenize its treasury assets, which governance risk is most directly introduced?

    Answer: Large token holders can collude to approve self-serving asset valuations

    Tokenizing treasury assets within a DAO can enable majority token holders to manipulate valuations or asset transfers for personal benefit, a form of plutocratic governance risk.