Buying and trading NFTs, or non-fungible tokens, is more than just a hobby. NFT consumers take this pastime very seriously, as do the creators who make them. Knowing the NFT you just bought, or are thinking of buying, is legit is important.
Using the blockchain, buyers and collectors can store their pieces without the fear of duplicates or losing out on future resale values. But how?
The blockchain tracks and verifies each NFT posted. Every NFT has a unique hash that makes it impossible to duplicate. All the transactions for each NFT are collected and then stored in blocks that, once they are filled, link together and eventually form – you guessed it – a blockchain. The NFT’s transactional data is stored like this indefinitely and can be viewed and verified by the public.
The problem is that the digital world blurs the lines between creation and plagiarism. You probably read a blog today that had some type of copied content. Unfortunately, this trend is now occurring in the NFT space, too. Here’s how you can learn if your newest NFT is indeed unique.
How to Verify an NFT’s Authenticity
There are many ways you can check to see if the NFT you’re looking at is genuine or a copy meant to entrap enthusiastic buyers. Some of the best ways to verify the authenticity of an NFT include:
- Google’s reverse-check tool: Using Google’s reverse-check tool you can find out important information about any photo or image, like how many different variants exist, how long the image has been online, and when the image was first uploaded.
- Play detective on social: Social media has a way of revealing a lot about people. Go to the image’s creator’s social sites. Creators typically post content related to their works and other activities they’re interested in. This is a great way to see if the person claiming to be the creator is, in fact, the creator – or a thief. Skim the comments section under posts and see what others have to say about the creator’s works.
- “You only want how much?“: It’s often said – if it sounds too good to be true, it probably is! And too inexpensive can mean stolen. An NFT thief, because they’re not a true, honest artist, won’t know how much a piece should sell for and so marks it low just to make a buck. Every artwork is different, but every piece has value. If a specific NFT you’re watching is ridiculously low-balled, it might not be the bargain you think it is. It’s likely plagiarized.
How to Verify Uniqueness and Rarity
Aside from knowing that the NFT you’re buying is genuine, you also need to be able to verify that it is unique and worth the price you’re paying for it. Some ways to check the uniqueness and rarity of an NFT include:
- Browse several NFT platforms: Is the creator selling the same NFT on multiple platforms? This is one of the slickest ways sellers use to attempt fraudulent “unique” sales. By putting an NFT on different platforms, the artist skirts the tagging issue. See, each platform has its ledger and tags each NFT upload uniquely. A true, legitimate artist will choose and stick to just one blockchain. Now, this doesn’t mean that artists can’t market on multiple platforms, just that all sales should flow through only one.
- Read project outlines thoroughly: One of the best ways to learn about how unique, rare, or useful an NFT will be is to read the project outline or whitepaper associated with it. These resources will tell you about the goals of the project, the technology behind it, and other critical data points.
- Check the performance of past projects: You should also check out past projects from the NFT creator to see how they performed over time. If the project you’re looking at is too alike something the artist already created in the past, it may not be as unique as it appears. Data from past projects can also help you decide what factors made for successful NFT offerings.
- Evaluate utility: Speculation is driving the price for virtually all NFTs up at remarkable rates. Eventually, though, the hype will subside, and tokens will have to perform on their own merits. Tokens that have no functionality or underlying collector value could rapidly drop when this happens. Carefully evaluating all purchases will help you avoid losing money when the current boom slows down.
Why Should You Verify NFT Transactions?
Maybe you’re not sure why tracking or verifying an NFT is important. But you must keep track of your NFT transactions. Here’s why:
By keeping track of and validating your NFT transactions, you can be sure that every token you buy, sell, or trade is authentic by checking the transaction is correct and successful, sent to the right person, and for the right amount of money. It’s also helpful to review your transactions because:
- If you can authenticate the NFT before buying it, you can verify who minted the content, when, and how many there are. This helps to verify that you’re buying the real NFT you think you are and not the knockoff version.
- You can see who else has owned the token before you, who has bought and sold it, and who its current owner is. This is helpful if you prefer contacting token holders directly rather than using marketplace platforms.
- You need to verify that the transaction was completed successfully. If you skip this verification step, you could accidentally buy too many tokens before the first has been completed or miss out on an NFT purchase because you assumed the transaction was completed when it hadn’t.
Ready to buy your first – or hundredth – NFT on a new platform? FabriikX is one of the first NFT marketplaces of its kind. Built on the power of the BSV blockchain, FabriikX offers expertly curated, exclusive NFTs from top creators within arts, sports, and music, as well as content from the best creative minds in the digital collectibles’ community. Sign up now to get on the list.
Any news, opinions, research, analyses, prices, or other information contained in this article are provided as general market commentary and do not constitute investment advice. We do not make any warranties about the completeness, reliability, and accuracy of this market commentary. Any action you take upon the information contained in this article is strictly at your own risk, and we will not be liable for any losses or damages in connection with the use of this article.
Trading in cryptocurrencies carries a high level of risk and may not be suitable for everyone. You should consider whether you understand how cryptocurrencies work and whether you can afford to take the high risk of losing your money.
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