Close
With the rise of fraud in the web 3 space, how to identify fake NFT is very important. Stay safe from fraud by knowing some simple but important tips. In this Pooyan Music post, we will explore ways to spot fake NFTs.
NFT scams often take advantage of users new to the market without blockchain knowledge.
You have to fight against fake NFTs. Scrutinizing the details of the NFT itself, its website, and the manufacturer’s profile is a great way to spot telltale signs of shady NFTs and unscrupulous sellers.
You can stay safe when buying NFTs with this post’s top tips for spotting fake sets. With just a little research, you can significantly reduce your chances of ending up with fake NFTs.
With the increasing popularity of NFTs, the issue of authenticity of NFT collections has come into focus. How to spot a fake NFT? What is fake NFT anyway? Understanding how to verify the authenticity of an NFT should be a must before investing in a digital portfolio.
The NFT space is new and scammers are starting to take advantage of users’ lack of understanding. The best way to protect yourself in this situation is to make sure you have the basic knowledge of how to check the authenticity of your NFT. This way you will know what you are buying.
In a word: Yes! The unprecedented rise in popularity of NFTs and the Metaverse in 2020 and 2021 has made the market attractive to scammers who prey on unsuspecting victims through fraud and plagiarism. For many new investors, understanding blockchain and NFT technology can also be challenging. These two factors create the perfect storm for fraudsters to take advantage of inexperienced NFT investors.
There is also a low barrier to entry to creating NFTs. This is great for creatives, artists and NFT visionaries. But it also means bad actors can generate fake NFTs quickly and cheaply. However, there is no need to panic. The following tips are a great start to identifying suspicious NFTs. As with any area of investing, taking time, patience and a little research will go a long way in keeping your money safe.
If you think you’re buying an NFT directly from the artist, check their website and social links to confirm the place of sale. Make sure you’re looking at an official account; Not a scam account set up by a scammer.
It is always good to check information on various social networks and official websites. If you’re trying to find a legitimate source of information, social media is probably a bad place to start. Another option is to ask for help in trusted NFT forums and communities. Again, make sure you’re using reliable sources and don’t just take someone’s word for it.
If you are buying a collectible on the secondary market, you can check the seller’s wallet address and NFT chain ID to see its origin. If the marketplace doesn’t allow you to see the seller’s wallet address, you need to be more careful.
In the past, many scammers have been seen copying the entire site. So even though the NFT website may look legitimate, you may be facing a fake URL. A fake website usually has missing details, low-quality text, and other fake signs that can be spotted if you look closely enough.
You should also never connect your wallet to a site before you know if it is legitimate or not. Once you connect your wallet to a fake website, its operators can easily access your funds.
Along with the vendor wallet and NFT chain data, another key piece of information to check is the NFT contract address. You should be able to find the exact collection contract address from a legitimate source. If the address is different, the NFT is not valid.
If you are buying an NFT from a popular series, there is a good chance that the NFT has already been traded. You can check this out by looking at NFT in Blockchain Explorer or NFT Market Aggregation. If an NFT has never been sold before, it’s worth a deeper look.
Even if there are enough sales, double-check the activity history to make sure these transactions don’t have the same or few wallets. This could be the work of a fraudster who intends to manipulate the sales volume and price by buying and selling his fake NFTs.
If the price seems good, it probably is. You can check the floor price of the entire series to see how it compares to the ask price of your favorite NFT. For example, if you find CryptoPunk on sale for only $5,000, it’s highly unlikely that it’s legit. As mentioned earlier, even if the price looks legitimate, you should make sure that it has not been manipulated by a small number of wallets.
While you may think you are buying an original piece of NFT art, you may not. By doing a reverse search on the NFT image, you can see other instances of its online representation. Some of these may be legitimate, but you may find that another artist already created the image and did not issue an NFT license for it. It is also possible that you simply have a copy of the NFT and not the original you expected.
Even when using a trusted exchange like Binance NFT Market, you have to be careful. The tips above are a great start and in most cases should help you figure out if what you’re buying is authentic. Remember, all blockchain transactions are final and irreversible. If you feel something doesn’t look quite right, trust your gut and don’t rush into buying anything.
