NFT has been making waves in the digital world as a result of its huge success in such a short time since its beginnings. It made a lot of people jump on the NFT scene because of what the NFT has to offer artists and collectors.
But this new development just like many new technologies didn’t come without some skepticism around it as non-nft believers see it as overhyped and a way for criminals to launder money.
What is NFT?
NFT is a poof of ownership on an item with unique attributes. These items include anything from artworks, video games, video clips, physical estate, etc.
With this NFT on a collectible made possible through blockchain technology, you have exclusive ownership of an artwork.
You are probably thinking “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.
Sure, but your rendition of the item isn’t worth anything. The person with exclusive rights (NFT) is the only one who has the genuine, valued version. It also aids digital artists in protecting and profiting from their work.
Non-NFT supporters, on the other hand, argue that NFTs are simply foolish and a means to reward lazy artists for mediocre work.
Yes, I agree that most NFT artworks aren’t really exciting to look at, but items aren’t valued solely on their aesthetic appeal. It is valuable because people place a premium on it. For instance, Beanie’s baby is just a mere tear bear, but people spend a lot to have them.
Jack Dorsey’s first tweet 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.
- 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. For your account, create a strong password and enable two-factor verification.
2. Don’t click on any unidentified link that asks you to confirm your account. Don’t give out your metamask password to anyone. It will not be requested by NFT customer service. If you need to double-check the legitimacy.
3. Before transacting on an NFT marketplace, make sure it’s legit.
4. Keep your eyes peeled for blue verification marks. The majority of genuine NFT vendors will have a blue checkmark next to their usernames, and the collection’s properties will be shown.
5. If an NFT’s price appears to be too good to be true, double-check before purchasing.
Hopefully, you’ve gained some insight into whether or not you should invest in NFTs. The NFT market is expanding, and it’s worth a shot.
Those that claim NFT is a fraud, well, you can’t call something a scam if no one is forced or duped into joining.
Please share this post with your friends and family if you find it useful. Assist them in learning about NFT and avoiding getting conned.