How Not To Get Scammed With NFTs? đź–Ľ
The world of crypto has grown exponentially, leading to a boom in blockchain-based tokens. Known as Non-Fungible Tokens (NFTs), these tokens are one-of-a-kind and can be used to represent or act as digital assets. According to Bloomberg, the market for NFTs reached $40 billion in 2021. NFTs seem like an ideal avenue for game developers to create unusual digital collectibles for their players while also helping build their brand and offering players the opportunity to make money. In this post, we’ll look at how to avoid falling victim to NFT scams.
Blockchain Technology
Using a blockchain, you can keep track of all of your transactions. It is constantly growing as it stores blocks that are made up of batches of transactions. These blocks are linked to the previous block through cryptography. The tech behind this tech is something called “NFTs” or Non-Fungible Tokens. NFTs are objects on the blockchain with unique identifiers and one-of-a-kind physical properties, like real-world objects.
What are Non-Fungible Tokens (NFTs)?
Non-Fungible Tokens (NFTs) are unique, non-divisible digital collectibles that serve as the basis of all trades in virtual reality. Unlike typical cryptocurrencies, they cannot be divided into smaller pieces. These tokens need to be created using the ERC 721 token standard or any other token system based on it.
How Do You Avoid Scams?
If you want to avoid scams, it is important to know what they look like. Scammers try to get people’s money by sending them a coin promise that never comes through or stealing your money outright. These frauds are often easy to spot because they don’t follow the right process of the “tokenomics” of a project. They also use lower-quality materials and don’t have any backing from a reputable party.
Tips to Avoid Getting Scammed with NFTs
There are many ways to stay safe while being involved in NFTs. The below will show you tips to make sure your transaction is done safely.
Always look for public information about the token and company. If you found any NFTs without proper information, it is a big red flag, and you should avoid buying them. It is even better if the company provides links to the company address and whitepaper.
Always ask questions. 🙋 If the team doesn’t respond, it is a red flag. Also, make sure to check the public information about the company. If the information is fake, it is better not to buy the token.
Always check for a website or email address. Check for any news articles (especially Google news) and social media regarding the NFTs. It’s a warning sign when there is none.
Always check if the token is not on the blacklist of scam websites. icoindex.co, coinmarketcap.com, icorating.com — The first three are scam lists of the biggest NFTs and the last one is a scam list of all cryptocurrencies.
Always read 👀 the whitepaper before investing and make sure that the token’s utility matches the company’s vision. Most of the tokens are utility-token with a clear plan for the token to serve its purpose in the NFT community. Some are just investments and are in some cases even more speculative than traditional stocks.
By investing in a token, you support the development of the ecosystem and the company behind it. If a token project has high growth potential, its price increases as well. It is a good reason to get involved in the community. The most basic way to invest in NFTs is to buy NFT tokens in a decentralized exchange as well as on any other exchange. In many cases, you will have to create an account with them and transfer money from your bank account or other cryptocurrency wallets to buy your tokens.
The Most Promising NFT in 2022, Anomus đźŽ
Anomus is a 100% decentralized news protocol that provides the globe with equal access to news. There is no geographic, political, or religious restriction on anyone who may become a news publisher on the site. First and foremost is the freedom to write and speak one’s mind.
To verify the authenticity of the author’s work, each piece of content will be coined as an NFT and placed into the publisher’s wallet. The web3.0 wallet will allow editing and publication rights to be traded or transferred.
Numerous well-known news media and blockchain companies throughout the world have endorsed the Anomus project. The project’s backers are a collection of seasoned blockchain professionals united by a common goal: to provide the most accurate information possible to the general public.
Conclusion đź–Š
If you can’t create your own NFT, it’s best to just buy one. It’s also a good idea to conduct some research before purchasing. This is to ensure you are investing in a high-quality NFT with a strong underlying tokenomics and not falling into NFT scams.
