Recently, the NFT has taken the digital world by storm. Many artists, content creators, and celebrities like Lionel Messi, Justin Bieber, Jimmy falcon, and others have jumped on this trend because of its promising future.
However, the NFT space hasn’t escaped backlash from critics and skeptics who believe that Nft is a big scam; a receipt of garbage, and an avenue for criminals to launder money.
In this article, you’ll be enlightened as to whether NFTs are scams or a legit way to get rich.
You may or may not know what NFTs are, so just to be on the same page. What is NFT? NFT is an acronym for None fungible tokens. Fungibility, simply means that something is interchangeable or not unique. For instance, you can exchange a 5 dollar note with 5 1 dollar notes, or exchange 1 bitcoin with another bitcoin and still have the same value, but this isn’t the case with NFTs.
Although, NFTs are cryptocurrencies. They are different from other cryptocurrencies with their none fungible nature. Hence, None fungible token is a token that has a unique attribute attached to it. Proof of ownership of a digital item which could be an artwork, image, video, etc. This serves as an exclusive right of certificate of authenticity to a digital asset. It holds unique information about the digital asset and the history of previous owners. You can get the token of an NFT asset by minting it on the blockchain network eg. Etherum, wax, etc.
Probably this question “why do I want exclusive rights to a digital item. when I could easily right-click and download it or screenshot it” is running through your mind.
Yeah, you could, but your version of the item is not valuable. The person with the exclusive rights (NFT) is the one with the authentic version that is valuable. Moreover, it helps digital artists protect and make money from their work.
Here are some popular NFTs
● Bore Apes
● NBA top shot
● NFT video games etc.
These NFTs are worth a lot of dollars.
However, non-NFT fans claim that NFTs are just plain stupid and a way to reward lazy artists for ugly artworks.
Yes, I agree that most NFT artworks may not be… exciting to look at, but things aren’t valuable based on how cool they look. It is valuable because people attach value to them. For instance, Beanie’s baby is just a mere tear bear, but people spend a lot to have them.
Jack Dorsey’s first twitt was sold for a lot of money. What is special about his first twitt? Nothing! other than maybe a bragging right. But someone considers it valuable enough to buy, so as long as people consider something valuable it is, whether it appears so or not is not valid until the otherwise happens.
Nonetheless, it is important to know that not all NFTs are valuable. Some NFTs are useless or will be useless in the long run.
There are certain things to look out for before buying an NFT
● Check the source: Many scammers disguise as NFT artists or employees of NFT companies to dupe people. They will embed a link in your mail, asking you to verify your account or go as far as replicating a genuine NFT website with little difference, so you can hardly tell. Some may disguise as customer support, wanting to help you with any issue you have with your account. They’ll ask for your metamask details (seed phrase) which they’ll use to hack your wallet and steal all your cryptos. To ensure not to fall victim to these scammers or phishing sites buy and trade your NFTs on legit platforms like bananatree.io
● Buy NFT with utility: As earlier mentioned not all NFTs are valuable. According to research, some are worthless, so buy NFTs that have an actual utility like NFTs attached to sports, a course you love, or NFT games where you can use your NFT to play in the metaverse and get rewarded with tokens that are valuable in the real world. Ensure to make proper research as to the legitimacy of the utility of the digital assets because some may lie about its utility just to get people to buy.
How do you protect yourself?
NFT just like other cryptocurrencies isn’t centralized, so authorities can do nothing to help you. But there are ways you can protect yourself and others from getting scammed. If you notice a phishing NFT website. You can report to the hosting company where their site is being hosted and the site will be shut down immediately. You can also take precautionary steps to protect yourself as provided below;
1. Set a strong password and two-factor verification for your account
2. Don’t click on any unknown link, asking you to verify your account. Don’t provide your metamask details to anyone. NFT customer support will not ask for it. If you must verify the authenticity.
3. Verify an NFT marketplace before transacting on the platform. You can always use bananatree.io it is a safe marketplace to buy and trade your NFTs
4. Look out for blue verification marks. Most legitimate NFT sellers will have a blue checkmark beside their usernames, and the properties of the collection will be listed.
5. If the price of an NFT is too good to be true verify from a legit platform bananatree.io
Hopefully, by now you’re enlightened on whether to invest in NFTs or not. The NFT space is growing and is worth trying. For those who claim NFT is a scam, well…you can’t claim something a scam if people aren’t been forced or tricked to join. If you find this article helpful share it with your friends and family.