Whether they support non-fungible tokens (NFTs) or not, investors, brands and businesses cannot ignore this new technology. In 2021, the NFT marketplace exploded, with a reported total market value of $40 billion and support from celebrities including Snoop Dogg, Mark Cuban and Stephen Curry. However, as NFT popularity skyrocketed, so did public interest in NFT scams, with Google searches hitting an unprecedented all-time high in early 2022.
As more money flows into the NFT industry, so do malicious actors hoping to extract value at the expense of everyday NFT users. Over the last few months, NFT scams have been getting increasingly more sophisticated and severe, ultimately emphasizing the caution that users need to exercise in a decentralized environment. Various types of scams exist, and it’s pivotal to know how to recognize them so you can avoid them.
The following discussion will examine the most common NFT scams and ways in which they can be identified and avoided.
What are NFTs, Actually?
NFTs are a type of cryptographic token that represents a unique asset. NFTs function as verifiable proofs of authenticity and ownership within a blockchain. These tokens can represent real-world items such as artwork, real estate, property rights and individual’s identities. Because they are based on the blockchain, NFTs can remove intermediaries, create new markets and simplify transactions.
Fungibility refers to the property of an asset…
