NFTs and fraud

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2 years ago

This article is based on 10BuffettDollar's post on noise.cash regarding the downsides of NFT that is not mostly spoken about.

If you feel any similarity with an article you've read before, it is from a noise.cash post and the link to this article is here 👉 link

I'm posting this article here for us to review here and discuss what we think about it.

Without further Ado let's get on with the article, please read carefully and let's discuss on your view about it.


The Dark side of NFT that no one will tell you about.

Imagine this situation: there is an artist Vasya who draws digital paintings and decides to sell them as NFTs on a #SmartBCH platform.

> He creates an NFT collection, hosts it on Oasis

> Suddenly a wealthy collector Petya comes and buys his NFT picture for $1,000,000.

> Everyone is shocked, the media starts writing high-profile articles that some user gave a million dollars for a picture on the Internet.

> The wave of hype is growing, the community is starting to get interested in Vasya's paintings.

> People are starting to buy the rest of Vasya's paintings for a lot of money.

> And then it turns out that Petya, who originally bought Vasya's painting for a million, was in cahoots with the artist and created an artificial stir.

But it's too late... people managed to buy up the entire collection for $100,500, someone got rich on resale, and someone was left with nothing. And there are dozens of such cases.

Also, a lot of large purchases on the NFT market are just money laundering. A person creates an NFT stone in a couple of minutes and buys it from himself for $100,000.

What is all this for?

Many stories about large NFT deals are just an illusion of easy money, because of which people buy useless NFTs and lose money on it.

By themselves, NFTs are a great technology that will definitely find its application. But this is definitely not a place where you can make money out of the blue by buying any NFT for $100 and selling it for $1,000,000.

NFT collecting, searching for rare and valuable sets is a difficult job that requires certain knowledge. It's time to take off the rose colored glasses.


More and more NFT frauds are popping up everywhere, NFT is more or less just coming up and I guess the security level concerning transactions about NFT is low. I believe the identity of an artist selling NFTs should be scrutinized and a more strict method should be put in consideration before anyone can list an NFT for sale.

New article here: @Kristofferquincy , @Pantera , @bmjc98 , @jane , @CryptoNag , @Lucifer01 , @Kiingsley , @Olasquare , @FarmGirl , @mommykim , @ErdoV , @bchlover .

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2 years ago

Comments

Anything that has to do with a digital certificate can be used to scam people, which is why scammers will always thrive. NFTs are useful, we all want them hence we can't avoid it.

$ 0.01
2 years ago

There's hope for a more secure update in the future.

$ 0.00
2 years ago

NFTs in SmarBCH are mostly a gamble about possibly staking in the future, with the exception of Queens and Panda, which are game related ad Joybots, which are... I'm not too sure what they are. As independent artist you can't post in Oasis, it only takes big projects with many NFTS. I have a couple of NFTs in Space and so far didn't sell any of them (did get one offer but it was too low for single artwork, I'm reconsidering the business model). I think NFTs have great potential. Still a long way to go.

$ 0.01
2 years ago

A very very long way to go....and it seems hackers find it easy to steal NFTs and money from purchasers, NFT is basically a good concept with too many portholes.

$ 0.00
2 years ago