NFTs are cryptographic assets on a blockchain that are distinguished by unique identification codes and metadata.
In the past few years, NFTs have gained significant popularity in the digital asset industry.
As the popularity of NFTs grows, so do the chances of people being scammed.
That can be used to allocate and prove ownership of digital assets. Millions of dollars have been paid for NFTs for digital art.
It is difficult to tell the difference between genuine and counterfeit NFT. How can you tell if an NFT is fake?
More individuals are asking themselves this issue as non-fungible tokens gain popularity in the art world. Plagiarism and frauds are becoming more of a concern as NFTs assist many traditional and digital artists in making their work viable again.
Check the authenticity of the NFT seller or artist
Check the artist's website and social media pages to validate if you think you purchased an NFT directly from them. Check that you're looking at an official account, not one made by a scammer.
It's usually a good idea to double-check information found on official websites and social media channels. If you can't find a credible source of information, it's probably a negative indicator. Another option is to look for guidance and context in reputable NFT communities.
Carefully review the NFT website
Fraudsters have been known to clone entire websites. As a result, even though the NFT website looks to be valid, you may be utilising the wrong URL. If you look closely, you can typically spot signs of fabrication on a false website, such as blank spaces, poor-quality text, and other errors.
Furthermore, never enter your financial information on a website without first checking its legitimacy. Once you've linked your wallet to a bogus website, its proprietors will have easy access to your funds.
Verify NFT sales volume
If you are purchasing an NFT from a popular series, there is a significant probability that it has been traded previously. You can confirm this by examining the NFT on a blockchain explorer or NFT marketplace aggregator. If the NFT has never been sold before, additional research is recommended.
Even if there have been enough sales, double-check the activity history to ensure that these transactions do not involve the same or a small number of wallets. It's possible that a fraudster is buying and selling their own counterfeit NFTs in order to control sales volume and price.
Examine the NFT's price
If the price appears to be too good to be true, it most likely is. Check the floor price for the entire series to see how it compares to the asking price of the NFT of interest. It's quite unlikely that a crypto punk for sale for $5,000, for example, is genuine. As previously said, even if the price looks to be authentic, you should always double-check to ensure it wasn't manipulated by a select few wallets.
Check the contract address on the NFT
In addition to the seller's wallet and the NFT's on-chain data, the contract address of the NFT is an important piece of information to check. A credible source should be able to provide you with the collection's exact contract address. If the NFT differs, it is not legitimate. You may readily spot fraudulent NFTs by examining the contact addresses.
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