5 Ways to Spot Fake NFT Pools
ONE non-fungible token (NFT) is a special identifier that can be used to assign and prove ownership of digital goods using cryptography. Digital art NFTs have raised millions of dollars. It is challenging to distinguish between original and fake NFT. How to detect a fake NFT?
As non-fungible tokens become popular in the art world, more people are asking this question. Plagiarism and forgeries are becoming more of a problem as NFTs are helping many traditional and digital artists make art profitable again.
5 Ways to Spot Fake NFT Pools
Verify the legitimacy of the NFT seller or artist
Check the artist’s website and social media accounts if you think you bought an NFT directly from them to confirm. Make sure you are looking at an official account and not a fake one created by a scammer.
It is always a good idea to double check the information on official websites and various social media platforms. It’s probably a bad sign if you’re having trouble finding a reliable source of information. Another choice is to seek guidance and context in trusted NFT environments.
Go through the NFT website carefully
Scammers have been known to replicate entire websites. Therefore, even if the NFT website appears to be legitimate, you may be using the wrong URL. If you look closely enough, you can usually see indications of fabrication on a fake website, such as blank spaces, poor quality text, and other errors.
Additionally, you should never submit your financial information to a website until you have verified its legitimacy. Once you link your wallet to a fake website, its owners can easily access your funds.
Also read: What are music NFTs? How are they changing the music industry?
Confirm NFT sales volume
There is a good chance that the NFT has been traded before if you buy an NFT from a popular series. By viewing NFT on a blockchain explorer or NFT marketplace aggregator, you can confirm this. If the NFT has never been sold before, further research is worthwhile.
Recheck your activity history to make sure these transactions don’t involve the same or a small number of wallets, even if there have been enough sales. It is possible for a fraudster to buy and sell their own counterfeit NFTs in an attempt to manipulate sales volume and price.
Research the costs of NFT
It’s probably true if the price seems too good to be true. To see how it stacks up against the asking price of the NFT of interest, check the floor price for the entire series. It is highly unlikely that a crypto-punk you find for sale for $5000, for example, is authentic. As previously mentioned, you should always check that the price was not manipulated by some selected wallets, even if it appears to be legitimate.
Check the contract address at NFT
Another important piece of information to verify is the contract address of the NFT, in addition to the seller’s wallet and the NFT’s on-chain data. You should be able to learn the collection’s exact contract address from a reliable source. NFT is not authentic if it is different. By checking the contact addresses, you can easily identify fake NFTs.
Also read: What is NFT Staking? Advantages and disadvantages of NFT Staking.
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.
