People pay millions of dollars to have ownership in the NFT space and get their favorite artworks as NFTs. Due to this circumstance, the differences between original NFTs and fake NFTs must be known.
If you do not want to lose your money and investment in the NFT space due to fake NFT collections, you are at the right point now! We are focusing on the ways that can be utilized to understand whether an NFT collection is fake.
In an old article, we explained five common NFT scams, and these scams should be known in this space by people who want to protect their investments or invest in safe projects.
Maybe, you think that these scams do not find you, but you are wrong. In the NFT space, there are lots of scams and fake NFT collections. For example, popular social media face Logan Paul’s crypto game, titled CryptoZoo, is accused as a scam. Hence, you should learn dealing with NFT scams and detect fake NFT collections.
Five Methods To Understand Fake NFT Collections
Controlling the websites of NFT collections
Unfortunately, there are very talented scammers and hackers, and these individuals can imitate NFT collections’ websites perfectly. In other words, you can encounter a fake NFT collection with a very real website.
Due to this imitation issue, you should check NFT collections’ websites carefully. When checking these websites, you can focus on their visibilities. For instance, you can consider the texts’ qualities and visuals on the websites.
If you cannot verify the realness of an NFT collection’s website, please do not enter the details of your digital wallet! If you share your financial details with the owners of a fake website, they can easily reach your money.
Controlling the identity of NFT artists
Now, we want you to think about an NFT that attracted your feelings in terms of art. You can think with your emotions for buying this NFT artwork, but first you should check the art’s creator.
For controlling the identity of an NFT’s creator, you can find the social media accounts of this creator. If you encounter lots of fake/unrelated comments under this creator’s posts, you can start to suspect.
Moreover, you can get help from other people on social media. As you know, Twitter and Discord are the top social media platforms covering the NFT space. You can visit these platforms to learn about a digital artist. In other words, you can consider the ideas of individuals from various NFT communities to understand a digital artist’s exact identity.
Considering the costs of NFTs
As we mentioned at the beginning, millions of dollars are paid for one NFT, so you should know that the prices of NFTs are high. In other words, high price of an NFT shows that the NFT is probably not fake.
For this way, you can start with checking the floor price of the whole series. Also, at that point, we want to emphasize that the prices of NFTs can be manipulated by a few wallets, so you should be certain for the prices before buying an NFT.
Checking NFT trading volumes
As you know, there are some popular NFT collections, like CryptoPunks and Bored Ape Yacht Club (BAYC). These popular collections have high NFT volumes, so we can say that there is no problem with these collections. What about other collections?
NFT trading volume is the total number of completed trades in one NFT collection, and you should consider this number before investing in a collection. You can utilize an NFT marketplace aggregator to conduct research into NFT collections and understand their volumes.
Please do not forget that cheaters can change collections’ volume by buying and selling! Due to this situation, you should examine the transactions on NFT collections; if these transactions belong to a small number of wallets or same wallets, you can suspect about them.
Focusing on the contract address of NFTs
Like considering NFT creators’ identities, NFT sellers’ wallets, and NFTs’ on-chain data, you should also focus on the contract address of NFTs before buying them.
If the address is different for different NFTs in a same collection, you should not buy NFTs from the collection. In other words, the contract address must be same for NFTs in a particular collection.
The NFT space gives us the chance to have fun and make investments, but the space also involves scammers and hackers. Due to this critical circumstance, you must apply the above steps for not buying a fake NFT.