Five Ways to Spot Fake NFT Collection
A non-fungible token (NFT), is a unique identifier that can be used for cryptography to assign and verify ownership of digital goods. NFTs for digital arts have been worth millions of dollars. It can be difficult to tell the difference between genuine and fake NFT. How can you spot a fake NFT
This question is becoming more common as non-fungible tokens gain popularity within the art world. Plagiarism is becoming more common as fakes and imitations are more common. NFTs can help many digital and traditional artists make their art more profitable.
Verify the legitimacy and authenticity of the NFT seller/artist
If you believe you purchased an NFT from the artist, check their website and social media accounts to confirm. You must verify that you are viewing an official account, and not a fake one made by a fraudster.
It is always a good idea for you to verify the information on official websites as well as various social media platforms. If you are having difficulty finding reliable information, it is probably a sign of trouble. Another option is to seek guidance in trusted NFT communities.
Take the time to carefully review the NFT website
It has been proven that fraudsters can replicate entire websites. Even though the NFT website looks legitimate, it could be that you are using the wrong URL. If you look closely enough you will see signs of fabrication on a fake site, such as empty spaces and poor-quality text.
You should also ensure that you verify the legitimacy of any website where you have entered your financial information. If you link your wallet to a fake website, its owners will be able to access your money.
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Also read: What are Music NFTs? How are they changing the music industry?
Verify NFT sales volume
If you buy an NFT from a popular series, there is a good chance it has been traded before. This can be verified by viewing the NFT on a NFT marketplace aggregator or blockchain explorer. Further research is recommended if the NFT has never previously been sold.
You can check the activity history to confirm that these transactions did not involve the same wallet or a small amount of wallets. Even if there were enough sales, you should still check the activity history. In an effort to manipulate the price and sales volume, it is possible that fraudsters are buying and selling counterfeit NFTs.
Consider the cost of NFT
If the price seems too good to true, it’s likely true. Check the floor price for all series to see how it compares to the NFT of your interest. It is highly unlikely that a crypto-punk you find for sale at $5,000 is genuine. You should always verify that the price was not manipulated by a few wallets, even though it may appear legitimate.
Check the NFT contract address
The contract address of the NFT is another important piece of information that you need to verify. This includes the seller’s wallet as well as the NFT’s On-chain data. A reliable source should be able to provide the exact address of the collection. If the NFT has a different address, it is not authentic. You can easily identify fake NFTs by checking the contact addresses.
Also read: What is NFT Staking and Why Is It Important? The pros and cons of NFT Staking.
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The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.