Whether in real life or in the digital world, there will be many scammers, frauds and ill-intentioned entities just waiting to prey on the not too vigilant or knowledgeable purchasers. And the same may be expected in the NFT market, which is currently experiencing unparalleled growth.
Since it became a trending market a few years ago, NFT transactions have reached a sales volume of $24 billion according to data collected in 2021. A few examples of NFTs include memes, photographs, tradable cards, limited edition event tickets and video clips, such as the hot-selling NBA “basketball moments.”
People have recognized the value of digital properties and are ready to shell out money for them. Aside from collecting NFTs for its perceived worth or rarity, the authenticity of NFTs matters most to buyers, in the same way one does not wish to be caught carrying a counterfeit product.
NFT stands for non-fungible tokens, unique digital assets that also serve as certificates of ownership with guaranteed authenticity. While anyone can download and claim ownership to any online content, an NFT must undergo the process of minting before it can be sold in an online marketplace or auction house. This means all details about the creator and digital file are immutably recorded on the blockchain.
In spite of these digital items’ unique tags and verifiability, there is still the possibility that the average buyer of an NFT art or collectible may be led to pay for a copy or a fake. There are also reports of NFT platforms who became involved in these fraudulent transactions, knowingly or not. Remember, the more popular and sellable a product is, the more criminals see it as a way to earn easy money.
Ways to Check Authenticity of NFTs
To verify the information of any digital asset, it is possible to check who the creators are, the person who minted the product and who the previous buyer is, if there is one. The Google reverse-check tool can also be used to cross-check authenticity. Searching social media of the supposed owner or creator can also give clues to the credibility of the seller and the NFT he is selling.
It is also unwise to easily get excited and trust in something that is priced too low because it may be a scam, with the seller being happy to grab what he can quickly take. Counterfeit sellers or asset thieves most likely do not appreciate real art, and therefore, do not know the real value of certain artworks. They will be ready to sell them for any amount and will immediately agree if you haggle for the price. Buyers should be wary of this kind of behavior.
A future buyer can also check online how many like it are being sold by the owner and whether the same NFT collectible is being sold on different platforms. Usually, artists or creators choose to use only one blockchain for each NFT.
One reason many people take the time to invest in NFTs is to later resell it for a higher price and profit from them. However, like when buying anything online, being extra cautious is the best advice everyone should take.