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The Crypto Museum is Being Built: Here’s What You Need to Know

A monumental venture is underway in the crypto industry: the construction of the Crypto Museum. This unique initiative aims to create a vibrant, interactive space dedicated to the rich history and dynamic future of cryptocurrencies and blockchain technology.

As a hub for education, preservation, and innovation, the Crypto Museum promises to be a cornerstone in the new narrative of digital finance.

Scope and Goals of Crypto.Museum

The Crypto Museum is not just a celebration of the past; it’s a roadmap for the future.

Here are its key goals:

Preserve Crypto History

Documenting the evolution of cryptocurrencies and blockchain, ensuring significant events and breakthroughs are immortalized.

Highlight Key Industry Milestones

Showcasing crucial developments and changes in the crypto landscape through engaging exhibits and timelines.

Incentivize Future Growth and Adoption

Promoting the benefits and possibilities of cryptocurrencies, fostering partnerships that encourage advancement and wider adoption.

Offer Value to the Crypto Community

Becoming a hub for crypto enthusiasts by providing exclusive content, early access, and special events.

Create Incentive Mechanisms

Developing a rewarding ecosystem with tokens and NFTs, offering benefits like staking rewards and governance participation.

Founding Members

The Crypto Museum is brought to life by a consortium of pioneering entities in the crypto world:

  • BlockInsider.com: A leading source of blockchain news and insights.
  • Crypto.ro: A platform dedicated to crypto education and community engagement.
  • Coineagle.com: An innovative hub for crypto market analysis.
  • Coin.news: A forefront player in delivering the latest in crypto news and developments.

These founding members represent the collaborative spirit and expertise driving the museum’s vision.

More members are invited to apply and more will be announced soon.

Do Not Miss the Upcoming Opportunities

By visiting crypto.museum and subscribing for updates, you can become an integral part of this journey.

We invite the community, builders, and investors to join us in shaping this exciting venture.

Early supporters and investors will find themselves at the heart of numerous opportunities, from exclusive insights to potential collaborations.

Be part of this groundbreaking endeavor and help craft the future of cryptocurrency heritage!

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New And Upcoming NFT Projects

Finding the best upcoming NFT projects can be quite challenging, but it’s an endeavor filled with excitement and potential rewards. The NFT world is buzzing with innovation and creativity, offering a plethora of opportunities for collectors and enthusiasts alike. This guide is tailored to simplify your journey through this vibrant landscape, highlighting key NFT trends, notable upcoming NFT mints, and standout NFT projects across various platforms. We’ll show you how to find upcoming NFT projects!

Upcoming NFT Projects

The arena of upcoming NFT projects in 2024 is a treasure trove of innovation and opportunity. As we delve into this space, we discover a range of projects that are setting new standards in the NFT world. From digital art masterpieces to revolutionary utility-based tokens, these upcoming NFT projects are not just about ownership, but also about experiencing the future of digital interaction and community building.

The beauty of these upcoming NFT projects lies in their diversity and potential for growth. Whether it’s promising and upcoming NFT projects on Solana or Cardano or the latest Ethereum-based artworks, each project offers a unique glimpse into the future of digital assets. The key to navigating this space is staying informed and connected, allowing you to identify NFT trends and engage with the best upcoming NFT projects that resonate with your interests and investment goals.

Possible NFT Trends For 2024

In 2024, the NFT space is expected to showcase a range of trends and developments:

Established And Upcoming NFT Art

Art has always held cultural and historical significance, and this extends to NFT art. It has already attracted a substantial base of collectors and enthusiasts, both within and outside the crypto space. This NFT trend is likely to continue in 2024.

GameFi And NFT Integration

The fusion of decentralized finance (DeFi), NFTs, and online gaming, known as GameFi, is advancing. This integration offers unique opportunities for players and developers, with NFTs serving as in-game assets and rewards, adding tangible value to gaming experiences. Games like Axie Infinity exemplify this trend, where characters exist as distinct NFTs on the Ethereum blockchain, enhancing digital ownership and security​​.

NFTs In The Metaverse

NFTs are becoming integral to the metaverse, facilitating digital ownership and interaction. They enable users to create or acquire lasting items for use across various virtual worlds. The metaverse utilizes NFTs for applications like virtual real estate, land ownership, and digital fashion, opening new avenues for investment and creative expression​​.

Virtual Real Estate And Land Ownership

In the metaverse, NFTs are revolutionizing virtual real estate and land ownership, offering opportunities for investment and development. Fractional ownership of property through NFTs is becoming more accessible, with platforms like Metropoly leading this trend. Marketplaces like OpenSea and Decentraland are prominent for trading virtual real estate NFTs​​.

Digital Fashion And Wearables

The metaverse is seeing a rise in digital fashion and wearables as NFTs, enabling users to express their style and individuality in virtual spaces. Brands like Adidas, Gucci, and Nike have successfully ventured into this arena, with platforms like DRESSX and UNXD facilitating the trade of digital fashion NFTs​​.

Decentralized Finance (DeFi) And NFTs

The convergence of DeFi and NFTs is opening new possibilities for financial innovation. Tokenizing real-world assets through NFTs enables fractional ownership and broader investment opportunities. NFT lending platforms like NFTfi and Solvent offer innovative solutions for using NFTs as collateral for loans, unlocking liquidity for NFT holders and broadening the scope of financial services​.

Upcoming NFT Projects And Mints

The world of non-fungible tokens (NFTs) is continuously evolving, with upcoming NFT projects and mints capturing the imagination of investors and enthusiasts alike. In 2024, the landscape is set to transform with innovative and promising NFT endeavors. This section looks at the most anticipated upcoming NFT projects and the hottest NFTs at the moment.

Pudgy Penguins

Pudgy Penguins is a vibrant NFT collection that launched in 2021. It features 8,888 unique cartoon penguins, each with distinctive traits like clothing, body features, and backgrounds. These penguins symbolize positive values such as love, happiness, compassion, and empathy.

The collection, originally developed by ColeThereum and friends, was later acquired by Luca Netz in 2022, who expanded the project’s reach. Notable for its large community, Pudgy Penguins also introduced Pudgy Toys in collaboration with major retailers like Walmart and Amazon. The collection represents more than digital art; it’s a symbol of communal virtues and a significant player in the NFT world, with its most expensive piece selling for over $640,000​​​​​​​​​​.

upcoming nft projects Pudgy Penguins
Azuki

Azuki is a standout NFT project featuring 10,000 anime-inspired avatars. Launched in January 2022 by Chiru Labs, a group of Los Angeles-based artists and developers, Azuki gained rapid popularity due to its unique artwork and ambitious roadmap. Initially offered via a Dutch Auction, the collection sold out swiftly, reflecting its high demand.

Azuki’s vision encompasses creating a large decentralized metaverse brand, emphasizing community ownership. The project has introduced “Azuki Beanz,” a complimentary collection to expand the Azuki universe without diluting its originality.

2023 saw the launch of Hilumia, Azuki’s virtual world offering immersive experiences exclusively for Azuki and Beanz holders. Additionally, Azuki announced a partnership with IPX, showcasing a blend of Web3 innovation and traditional branding strategies​​.

upcoming nft Azuki
Lil Pudgys

Lil Pudgys emerged as an adorable extension of the Pudgy Penguins NFT collection. Launched in December 2021, this collection comprises 22,222 penguin NFTs, serving as allies in the Pudgy Penguins’ narrative. With a delightful aesthetic designed to spread positivity, Lil Pudgys offers an affordable entry into the Pudgy ecosystem.

Each NFT in the collection is unique, featuring a combination of 405 traits across 10 categories. The distribution of Lil Pudgys included a public sale and a claimable portion for Pudgy Penguin owners. Despite early controversies involving the original team, the project found new direction under entrepreneur Luca Schnetzler.

His team has introduced innovative concepts like soulbound tokens and expanded the project’s reach with initiatives like Pudgy Toys, a collaboration with PMI Toys for physical merchandise. The Lil Pudgys collection has also embraced cross-chain capabilities, allowing NFTs to traverse multiple blockchain networks. This strategic expansion has positioned Lil Pudgys as a dynamic player in both digital and physical realms, blending NFTs with real-world applications​​​​​​​​​​.

NFT Trends Lil Pudgys
Skyborne – Genesis Loot

Skyborne – Genesis Loot is part of the Skyborne Legacy franchise developed by Revolving Games. This company is backed by prominent Web3 investors and features a global team. Its ambitious franchise consists of a trilogy: Skyborne Genesis (a web browser minigame), Skyborne Phoenix Flight (a mobile fantasy adventure game), and Skyborne Legacy (a PC MMORPG), slated for release in 2024.

Skyborne Genesis serves as a prologue in this universe, offering narrative-driven quests with NFT rewards. It’s a strategic and immersive experience where players use “Immortal” NFTs to complete quests and earn rewards, significantly enhancing their gameplay in the upcoming games of the franchise.

Skyborne Genesis has partnered with OpenSea for its first free NFT mint, including the Genesis Immortals and Nexian Gems collections. These collections provide early access to new content and collectibles for future Skyborne mints.

The game, developed using the Polygon PoS protocol, is set in a detailed world where traits impact the gameplay, and the quests are designed to maximize player engagement and rewards. Skyborne’s roadmap and collaborative efforts with industry leaders highlight the potential of blockchain in gaming and its commitment to delivering a rich, multifaceted gaming experience​.

Skyborne - Genesis Loot
Milady Maker

Milady Maker is an NFT collection of 10,000 pieces, showcasing a unique neochibi aesthetic inspired by Y2K Japanese street style tribes. This project transcends the typical digital art sphere, creating a lifestyle and community around its distinctive aesthetic.

It features innovative VR integration, allowing avatars to be used in VRtube, and a specialized Milady Minecraft Metaverse for community engagement and events. The collection also includes exciting expansion projects like Banners NFT and Redacted Remilio Babies, offering diverse experiences to holders.

The distinct art style of Milady NFTs, influenced by various Tokyo fashion themes, is complemented by a ‘Drip Score’ system, enhancing their appeal and market value. This project not only presents unique digital art but also fosters a vibrant community and diverse artistic expressions​.

Miladay Maker
OrdiRocks: Upcoming NFT Project?

OrdiRocks is a distinct NFT collection comprising 500 genesis tokens, created in February 2023. It’s a series of digital artworks stored on the Bitcoin blockchain, forming part of a larger suite of 10,000 NFTs. With 3.346 unique owners currently holding at least one OrdiRock, the collection has a significant holder base.

OrdiRocks is part of the larger suite of Bitcoin Ordinals. These are essentially Satoshis (the smallest unit of Bitcoin) that have been ordered and inscribed with unique information such as text or images, transforming them into a type of NFT. Unlike traditional NFTs (on Ethereum or Solana) minted as new tokens, Ordinals are inscribed directly onto the Bitcoin blockchain, containing the actual raw file data.

This approach differs significantly from other NFTs, which often only refer to off-chain files. Ordinals, therefore, represent a blend of digital art and blockchain technology, retaining the fungibility at the protocol level but becoming unique at the social level due to their inscriptions.

upcoming NFT OrdiRocks
Bitcoin Punks

Bitcoin Punks, part of the growing trend of Bitcoin NFTs, is an NFT collection that mirrors the iconic CryptoPunks. This collection, leveraging the Bitcoin-native Ordinals Protocol, consists of 100 NFTs styled similarly to Yuga Labs’ CryptoPunks on Ethereum. One notable sale from this collection, Punk 94, fetched a significant 9.5 BTC, approximately $214,000.

The Ordinals Protocol utilizes Bitcoin’s Taproot upgrade to securely and efficiently store NFTs through inscriptions, essentially encoding data onto individual satoshis. The Bitcoin Punks were minted on the first 650 inscriptions of the Bitcoin network, representing a significant move in the blockchain community.

Bitcoin Punks
Axies

“Axies,” based on the popular blockchain-based game Axie Infinity, are unique digital creatures that players can collect, breed, raise, battle, and trade. Each Axie is a non-fungible token (NFT) with different attributes and strengths, making them unique in the game’s ecosystem.

The game has garnered significant attention for its play-to-earn model, where players can earn cryptocurrency through gameplay and contributions to the ecosystem. The game blends elements of traditional gaming with emerging blockchain technology, creating an innovative, engaging, and financially incentivized gaming experience. Axies have become a cornerstone of this virtual world, symbolizing the fusion of gaming and decentralized finance (DeFi).

Decentraland

In Decentraland, NFTs play a central role, representing the ownership and trading of virtual land parcels in this Ethereum-based virtual world. These land parcels are unique, immutable digital assets that users can purchase, develop, and monetize, creating personalized experiences ranging from games and interactive art to social hubs and commercial ventures. The platform’s marketplace facilitates the buying, selling, and leasing of these NFT land parcels, as well as other digital goods and services, making Decentraland a vibrant ecosystem for virtual real estate and a hotbed for digital creativity and commerce.

DeGods

“DeGods” is a prominent NFT project known for its unique digital collectibles. Each NFT in this collection represents a distinctively designed digital character, often with a focus on artistic creativity and rarity. The DeGods project has gained popularity in the NFT community for its engaging community involvement, innovative features, and utility within the digital collectibles space. Owners of DeGods NFTs often have access to exclusive events, community votes, and special releases, making it a dynamic and community-driven project within the wider NFT ecosystem.

DeGods upcoming nft
CryptoPunks

CryptoPunks, launched in 2017, are the original trailblazers in the NFT world, holding a significant place in the history and development of the crypto art movement. Globally acknowledged for their cultural and artistic value, CryptoPunks have earned inclusion in prestigious art institutions like the Centre Pompidou in Paris, LACMA, and ICA Miami.

In May 2023, CryptoPunks achieved a remarkable milestone, becoming the first NFT collection to surpass $100 million in total loan volume on NFTfi. This feat reflects the strong adoption of NFT finance tools by CryptoPunks holders, who have successfully leveraged their assets for liquidity while maintaining a high repayment rate. The collection’s integration into the financial sphere exemplifies how NFTs are being used beyond just collectibles, evolving into significant assets in the broader financial landscape​​.

Mutant Ape Yacht Club (MAC)

The Mutant Ape Yacht Club, created by Yuga Labs, is an innovative extension of the Bored Ape Yacht Club (BAYC) ecosystem. Launched on August 28, 2021, as a collection of 20,000 Mutant Ape-themed NFTs, MAYC aimed to expand the BAYC collector base.

Each MAYC NFT is derived from an original Bored Ape NFT, transformed through a process involving ‘Mutant Serum’ NFTs. Half of the Mutant Ape Yacht Club collection was created by Bored Ape holders using these serums, while the other half was sold through a Dutch auction.

The MAYC project has significantly increased the accessibility of the Bored Ape ecosystem. Originally, Bored Ape NFTs were expensive and elusive, but the introduction of Mutant Ape Yacht Club and Kennel Club NFTs lowered the barrier to entry. This accessibility has extended MAYC’s popularity beyond the NFT space, with several brands utilizing Mutant Apes as brand ambassadors.

Bored Ape Yacht Club (BAYC)

Bored Ape Yacht Club NFTs are certainly no longer an insider tip, in fact the BAYCs have long been the most popular and most expensive NFT project. But because the price of BAYCs plummeted in the bear market, they could be one of the upcoming NFT projects in terms of value appreciation in the next crypto bull market.

The Bored Ape Yacht Club (BAYC) is a collection of 10,000 unique Bored Ape NFTs (Non-Fungible Tokens) residing on the Ethereum blockchain. Each NFT depicts a distinctive digital character, generated algorithmically. The collection gained popularity for its blend of digital collectibles and membership perks, creating a unique online club experience.

Notably, BAYCs have attracted a notable list of celebrity buyers, making it a popular NFT collection. Some of the most famous buyers include Snoop Dogg, Gwyneth Paltrow, Stephen Curry, Post Malone, Jimmy Fallon, Lamelo Ball, Justin Bieber and DJ Steve Aoki.

BAYC NFTs
Cardano NFT Projects Upcoming

The Cardano blockchain, recognized for its proof of stake consensus mechanism, is fast becoming a hub for upcoming NFT projects. Here we delve into the top three Cardano NFT projects making waves on the network, as highlighted by DappRadar’s latest data.

cardano nft projects upcoming
1. The Ape Society

At the pinnacle of upcoming Cardano NFT projects stands The Ape Society, a collection that has seen a remarkable uptick in both average price and volume, rising by 8.85% and 84.97% in the last 30 days respectively. This collection’s unique digital artwork of apes has not only captivated the community’s imagination but also reflected the growing interest in Cardano’s NFT capabilities. With 168 traders and 124 sales in the last 30 days, The Ape Society is setting a strong precedent for digital collectibles on the Cardano blockchain.

2. Toolheads

Toolheads occupies the second spot, with a nuanced approach to NFTs. Despite a slight decrease in volume in the last 30 days, the average price has risen by 19.1%, indicating a robust demand for this collection. The number of traders interacting with Toolheads has reached 403, and the collection has facilitated 536 sales, showcasing a solid engagement level within the Cardano NFT ecosystem.

3. Jellycubes – BIG

Jellycubes – BIG, another leading Cardano NFT collection, offers a distinct aesthetic with its vibrant and playful cubic creatures. While the volume has seen a downturn of 47.64% in the last 30 days, the traders remain engaged, with 96 active participants and 57 sales. The collection’s average price has experienced a modest increase of 4.85%, suggesting that collectors are still valuing the uniqueness of these NFTs.

New NFT Games In 2024

The year 2024 is shaping up to be a monumental year for blockchain-based gaming, particularly with the integration of NFTs. The gaming landscape on blockchains like Ethereum, Binance Smart Chain, and notably Cardano is undergoing rapid innovation. New games leverage the unique properties of NFTs to redefine player ownership and involvement. Below, we explore some of the most anticipated NFT games slated for release in 2024, which promise to offer unprecedented gaming experiences.

1. Best Upcoming NFT Game: Illuvium

Illuvium, which made its grand entrance on the Epic Games Store on November 28, 2023, is a trailblazer in the AAA-quality, open-world RPG genre. Built on the Ethereum blockchain, Illuvium offers a visually stunning experience where players can explore a vast alien landscape. The game’s integration of NFTs is seamless, allowing players to capture deity-like creatures known as Illuvials, each tokenized as an NFT.

The ownership of these Illuvials is absolute, with the blockchain ensuring the uniqueness and provenance of each creature. With its deep strategic elements, the game allows players to battle, trade, and build a collection of Illuvials, which can be leveraged in competitions. As the first blockchain-based title to launch on a mainstream gaming platform, Illuvium is not just a game but a statement about the future of integrated blockchain gaming.

BlockLords

BlockLords is a grand strategy game that thrusts players into the heart of a medieval landscape ripe with political intrigue and economic strategy. Each player’s journey towards dominion is nuanced by the NFT-based ownership of characters, lands, and titles.

Expected to release in late 2024, BlockLords is set to offer a experience where players can become lords, vassals, or monarchs. The integration of NFTs promises to elevate the strategic gameplay, allowing for authentic asset ownership and transfer.

Guild Of Guardians

Guild of Guardians is an upcoming mobile RPG that merges the thrill of dungeon-crawling with the cutting-edge technology of NFTs. Scheduled for release in the first quarter of 2024, it empowers players to build powerful guilds, embark on adventurous quests, and earn valuable resources.

Guild of Guardians tokenizes every character and item, allowing players to earn tangible rewards through its “play-to-earn” model. Designed for mobile platforms, the game extends NFT gaming’s reach beyond traditional PC and console markets. Its free-to-play model, coupled with the potential for players to earn real-world value from in-game achievements, positions Guild of Guardians as a potential vanguard in the mobile gaming sector.

How To Find Upcoming NFT Projects

Discovering upcoming NFT projects that resonate with personal interests or investment goals requires a proactive approach to navigate the expansive digital landscape. Here are some strategies to uncover these hidden gems:

Research And Community Engagement

The first step is to immerse yourself in the NFT community. Platforms like Twitter, Discord, and Reddit are teeming with discussions about new and upcoming projects. Joining these communities can provide insights into emerging trends and lead to early discoveries of promising NFT ventures.

NFT Marketplaces And Listing Sites

OpenSea, the largest NFT marketplace, offers a feature-rich platform where users can explore and track upcoming collections. Their ranking system, interactive interfaces, and detailed asset information make it a valuable resource for enthusiasts looking to catch the next wave of upcoming NFT projects.

Upcoming NFT projects

Analytics And Tracking Platforms

DappRadar is an analytics platform that provides comprehensive data on blockchain-based projects, including NFT collections. Their interface allows users to monitor activity, track trends, and gain a granular understanding of the market dynamics. This is crucial when scouting for upcoming NFT projects.

Upcoming NFT projects

NFT Calendars And Launchpads

Dedicated NFT calendars and launchpads list upcoming drops, auctions, and minting events, providing valuable information. These specialized resources are invaluable for staying ahead of the curve and securing positions in early-stage projects

The Future Of NFT Art And Collections

NFT art and collections are on a trajectory for an intriguing evolution. This is marked by a deeper integration with traditional art markets and heightened interactivity. As auction houses and galleries increasingly embrace NFTs, the barrier between digital and physical art continues to dissolve. Fractional ownership stands ready to further democratize art collection, enabling broader access to high-value pieces and potentially enhancing market liquidity.

In the creative sphere, AI is anticipated to become a pivotal force, creating unique artworks. The future also promises enhanced cross-platform interoperability, making the trade and display of NFTs more fluid across various blockchain ecosystems.

Sustainability is becoming a central concern, with the NFT sector likely to adopt more eco-friendly practices and technologies. Alongside this, clearer regulatory frameworks will emerge to provide security and foster growth within the industry.

Finally, NFTs are poised to play a significant role in cultural and historical preservation. They introduce new methods for protecting and sharing our collective heritage. As these trends converge, the NFT landscape will not only redefine artistry and ownership but also shape the cultural fabric of our digital-centric world.

FAQ: Upcoming NFT Projects

What Are Some Notable Upcoming NFT Projects to Watch Out For?

The NFT arena is abuzz with groundbreaking initiatives such as Skyborne Genesis Loot, Lil Pudgys, OrdiRocks on Bitcoin and Axies.

What Exciting Opportunities Exist in Upcoming NFT Minting?

There are numerous compelling minting opportunities, including exclusive digital collectibles, collaborative pieces from prominent artists, and interactive NFTs. The latter promise engaging and potentially immersive experiences.

What Are the Most Anticipated Upcoming NFT Projects in 2024?

The NFT community eagerly awaits the year 2024 for projects like Skyborne Genesis Loot, Lil Pudgys, OrdiRocks and Axies.

Which Up and Coming NFT Projects Are Gaining Momentum?

Among the upcoming NFT projects, the Pudgy Penguins stand out. Analysts speculate that they could overtake the BAYC NFTs from their top spot in this crypto bull run.

What Are Some Big Upcoming NFT Projects Set to Launch Soon?

On the imminent horizon are ambitious projects such as “CryptoCinema,” which merges the realms of NFTs and cinematic entertainment. Another one is “Phantom Galleries,” which promises to deliver AR art experiences by world-renowned creators.

Which Upcoming NFTs To Mint Should Collectors Be Excited About?

Collectors should look forward to minting prospects within projects like “Synthetica,” showcasing AI-generated artwork. Also interesting is “Legacy Tokens,” which offer ownership in digitalized historical artifacts.

What New NFT Games In 2024 Are Creating a Buzz?

Illuvium, BlockLords and Guild Of Guardians are generating excitement with their rich narrative and strategy-driven gameplay. They seamlessly integrate NFTs into their core mechanics.

Which Are the Top New NFT Projects Currently?

Iconic collections like Bored Ape Yacht Club (BAYC) and Pudgy Penguins currently still dominate the NFT landscape. They captivate the market with their unique community offerings and evolving narratives.

What Are Some New NFT Projects To Mint With Potential?

Innovative ventures like “Quantum Quirks,” connecting scientific wonders to NFTs, and “SoundSculpt,” visualizing audio in art form, are brimming with potential and ripe for minting.

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Why Are NFTs Bad? The Problem And Legal Issues

Why Are NFTs Bad? This pressing question underscores today’s heated discussions around Non-Fungible Tokens (NFTs). Despite the buzz, many investors are left grappling with unsellable NFTs, questioning their value and security. This article cuts through the noise to examine the critical issues and legal challenges surrounding NFTs.
We navigate the complex NFT laws, dissect the reasons behind the unsellable nature of some digital assets, and address the underlying problems fueling the skepticism. With focused insights, we aim to shed light on the darker aspects of NFTs to answer the question: are NFTs bad?

Why Are NFTs Bad?

The question “Why are NFTs bad?” resonates in the digital world, particularly among those cautious about the rapidly evolving blockchain technology. NFTs, or Non-Fungible Tokens, have garnered attention for their unique ability to represent ownership of digital assets. However, beneath the surface of this innovative technology lies a web of concerns that have led many to question their overall value and impact.

Understanding NFTs: A Brief Overview

NFTs are digital tokens that represent ownership of unique items, using blockchain technology to certify authenticity and ownership. Each NFT stands out as distinct, unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and allow for one-to-one exchanges. They can represent anything digital, such as art, music, or even tweets.

NFTs derive their uniqueness from granting a feeling of exclusivity and ownership over digital assets, which have traditionally been easily replicated and distributed. By tokenizing these assets on a blockchain, NFTs create a digital scarcity and a verifiable way to claim ownership.

However, the rise of NFTs has not been without controversy. Their detractors point to several key issues: technical issues questioning the longevity of NFTs, the potential for market manipulation, and the creation of a speculative bubble where the value of digital assets is highly uncertain. Furthermore, the legal landscape surrounding NFTs is still evolving, with questions about copyright and ownership rights at the forefront.

Exploring The Main Question: Why Are NFTs Bad?

While NFTs have their benefits, the growing concerns cannot be overlooked. The main question, “Why are NFTs bad?” stems from several critical issues associated with their use and functionality.

Why Are NFTs bad

Technical Challenges And Longevity Concerns

The appeal of NFTs on blockchains such as Ethereum is diminished by various technical challenges, raising questions about their long-term viability and dependability as digital assets. Here are some technical reasons for “why are NFTs bad”:

  1. Off-Blockchain Asset Storage: Most NFTs, especially on Ethereum, link to digital assets like images stored off the blockchain due to Ethereum’s size and cost constraints. These assets are often hosted on platforms like IPFS (InterPlanetary File System), not directly on the blockchain.
  2. External URL Vulnerability: The use of external storage like IPFS raises questions about the longevity and accessibility of the linked digital assets. The potential obsolescence of these platforms poses a risk to the permanence of NFTs.
  3. Blockchain-Specific Uniqueness: The uniqueness of an NFT is limited to its native blockchain, like Ethereum. The same asset can be tokenized on different blockchains, challenging the notion of uniqueness.
  4. Duplicate NFT References: NFTs can reference the same digital asset via HTTP links, leading to multiple NFTs for a single asset within the same blockchain, contrary to their non-fungible nature.

Market Manipulation And Speculative Bubble

The NFT market is not just a platform for digital creativity but also a hotbed for speculation and potential market manipulation, raising significant concerns. Following are some market-related reasons for “why are NFTs bad”:

  • Speculative Investments: NFTs have become symbols of speculative investment, with prices often driven by hype rather than intrinsic value. High-profile sales, like that of Beeple’s artwork, have attracted a wave of investors looking to capitalize on potential market booms. This speculation can inflate prices artificially, creating a bubble where the value of NFTs is grossly overestimated.
  • Risk Of Market Manipulation: The NFT marketplace is vulnerable to manipulation due to its relatively unregulated nature and the opacity of transactions. There have been instances where artists or sellers artificially inflate the value of an NFT by purchasing their own assets through third parties. This tactic creates a false impression of high demand and value, luring unsuspecting buyers into overpaying.
  • Impact Of Celebrity Endorsements: The involvement of celebrities and influencers in promoting NFTs further fuels the speculative bubble. Their endorsements can lead to rapid spikes in prices and interest, often without a sustainable basis. While celebrity involvement has brought mainstream attention to NFTs, it also raises questions about the genuine value and long-term viability of these assets.
  • Volatility And Unsustainability: High volatility marks the NFT market, featuring significant fluctuations in value. This instability renders NFT investments risky, especially for individuals not deeply familiar with the digital asset landscape.

Legal Ambiguity

The burgeoning world of NFTs is mired in legal ambiguities, making it a complex landscape to navigate for creators, collectors, and investors alike. Below are some legal reasons for “why are NFTs bad”:

Unclear Copyright And Ownership Rights:

One of the fundamental legal challenges with NFTs is the ambiguity surrounding copyright and ownership rights. Purchasing an NFT often grants the buyer ownership of a unique token, but not necessarily the copyright of the underlying digital asset. This distinction can lead to confusion and disputes over what buyers are actually entitled to when they acquire an NFT.

Varying International Laws:

The legal recognition of NFTs varies significantly across different jurisdictions. While some countries may have specific regulations governing digital assets, others lack clear guidelines. This inconsistency presents challenges, particularly in cases involving cross-border transactions or disputes.

Smart Contract Complexities:

NFTs operate on smart contracts—self-executing contracts with the terms of the agreement directly written into code. However, the legal status of these contracts is not always clear. Issues arise when smart contracts, which are immutable once deployed, contain errors or do not align with legal standards. Rectifying these issues can be complicated and may require litigation.

Regulatory Uncertainty:

The regulatory landscape for NFTs is still in its infancy. Financial regulators in various countries are grappling with how to classify NFTs—whether as securities, commodities, or a completely new asset class. This lack of regulatory clarity adds to the uncertainty, particularly regarding compliance with existing financial laws and anti-money laundering (AML) requirements.

Liability And Consumer Protection:

The decentralized nature of NFT marketplaces often leaves consumers with limited recourse in cases of fraud, theft, or disputes. In such scenarios, the issue of liability remains mostly unresolved, and consumer protection mechanisms are not as strong as those in traditional financial markets.

NFT Pros And Cons

The world of Non-Fungible Tokens (NFTs) presents a mixed bag of advantages and drawbacks. Understanding these pros and cons is essential for anyone looking to engage with NFTs, whether as creators, collectors, or investors.

Pros Of NFTs:

  • Digital Ownership And Provenance: NFTs provide a clear proof of ownership and provenance for digital assets. They enable artists and creators to monetize digital works, which were previously easy to replicate and difficult to sell as unique pieces.
  • Market Expansion For Artists: NFTs have opened up new markets for digital artists and creators, allowing them to reach a global audience. This democratization of art sales has empowered artists, especially those outside the traditional gallery system.
  • Innovation And Creativity: The NFT space encourages innovation and creativity, particularly in digital art and multimedia. It has sparked new forms of artistic expression and collaboration.
  • Collectibility And Investment: For collectors, NFTs offer a new avenue for investment in digital art and collectibles. The unique nature of NFTs makes them appealing as collectible items.

Cons Of NFTs:

  • Technical Issues: On blockchains like Ethereum, NFTs present several technical issues, questioning their longevity. Being aware of these issues is crucial.
  • Market Volatility And Speculation: The NFT market is highly volatile, with values fluctuating dramatically. This instability, coupled with speculative investments, poses risks for buyers and sellers.
  • Intellectual Property Issues: The legal ambiguity around copyright and ownership rights in NFTs creates complications for intellectual property law. Buyers might not fully understand what rights they are acquiring, leading to potential legal disputes.
  • Accessibility And Inclusivity Issues: Despite their potential for democratizing art, NFTs also pose challenges in terms of accessibility and inclusivity. The technical and financial barriers to entry can be high, limiting participation to a more tech-savvy and financially capable audience.

The Dark Side: Unsellable NFTs And Market Risks

The world of NFTs is not just about innovation and lucrative opportunities. There’s a darker side to this market, characterized by the phenomenon of unsellable NFTs and significant market risks that raise critical questions about the overall safety and soundness of investing in these digital assets. This adds another layer to the question “why are NFTs bad.”

The Reality Of Unsellable NFTs

While NFTs have been sold for staggering amounts, the reality is that not all NFTs find buyers, leading to a growing concern over unsellable NFTs. Several factors contribute to this situation:

  • Market Saturation: As more creators and investors flood into the NFT space, the market is becoming increasingly saturated. This saturation makes it harder for individual NFTs to stand out, reducing their likelihood of being sold.
  • Speculative Nature: Many NFTs are bought for speculative purposes, with the hope of reselling for a profit. When the speculation bubble bursts, or if the hype dies down, the value of these NFTs can plummet, making them difficult to sell.
  • Lack Of Intrinsic Value: Some NFTs may lack intrinsic artistic or collectible value, being created solely for the purpose of capitalizing on the trend. These NFTs may struggle to find a market.
  • Liquidity Issues: The NFT market is not as liquid as other investment markets. Selling an NFT, especially at a desired price point, can be challenging and time-consuming.

Platforms like Unsellable specialize in purchasing these low-value NFTs for tax write-off purposes.

Unsellable NFTs
Are NFTs Bad?

The question “Are NFTs bad?” is complex. NFTs themselves are a neutral technology with potential for positive use, such as supporting artists and creating unique digital experiences. However, the issues of market saturation, speculative bubbles, and technical concerns add a negative aspect to this technology. The answer largely depends on how NFTs are used and the awareness of the buyers and sellers about the risks involved.

Are NFTs Safe?

The safety of investing in NFTs is a matter of perspective and depends on various factors:

  • Technical Issues: NFTs on Ethereum face several problems that investors should be aware of.
  • Market Volatility: The high volatility of the NFT market can lead to significant financial risks for investors.
  • Legal and Technical Risks: As discussed earlier, there are legal ambiguities and technical challenges associated with NFTs, which can impact their long-term viability.
  • Scams And Fraud: The NFT space, like any emerging market, is susceptible to NFT scams and fraudulent activities, which can pose risks to less experienced investors.

NFT fraud

NFT Laws: Legal Challenges

Navigating the complex legal landscape of NFTs poses a challenge, given that these digital assets intersect various aspects of law in ways that are still evolving and being defined. The dynamic and rapidly evolving nature of NFTs has left lawmakers and stakeholders working to catch up with the legal implications which adds another argument to the question “why are NFTs bad”.

NFT Laws Decoded

The application of existing laws to NFTs is a challenging task, primarily because NFTs are a novel concept that doesn’t fit neatly into traditional legal categories. Intellectual property rights are at the forefront of legal concerns. When someone purchases an NFT, they acquire a token that represents ownership, but the extent of this ownership is often misunderstood. It rarely includes the right to reproduce or distribute the underlying digital asset, leading to potential legal disputes over copyright infringement and ownership rights.

Consumer protection laws are also critical in the NFT marketplace. These laws are designed to protect buyers from deceptive practices. However, the decentralized and often anonymous nature of blockchain transactions makes the enforcement of such laws challenging. The risk of fraud and misrepresentation is high, and buyers may find themselves with limited recourse in cases of dispute.

The classification of NFTs under financial regulations is another area of legal ambiguity. The structure and nature of certain NFTs might classify them as securities. For example, the US Securities and Exchange Commission charged Stoner Cats 2 for conducting an “unregistered offering of crypto asset securities,” depending on their specific characteristics. This categorization subjects them to stringent regulatory requirements, including registration and disclosure obligations under securities laws. However, the lack of clear guidance from regulatory bodies creates uncertainty for NFT issuers and investors.

NFT Legal Issues: A Detailed Analysis

Legal issues in the NFT space are diverse and multifaceted. Copyright and ownership disputes are common, particularly as the lines between digital ownership and copyright ownership are blurred. These disputes often involve multiple parties, including artists, digital platforms, and collectors, each with differing interpretations of their legal rights.

Smart contracts, which are the backbone of NFT transactions, present their own set of legal challenges. While these contracts are designed to be self-executing and immutable, they are not immune to legal scrutiny. Disputes can arise when the terms encoded in smart contracts conflict with statutory laws or when there are errors in the code. The resolution of such disputes often requires litigation, which can be complex and costly.

Taxation of NFT transactions is an emerging area of legal concern. The tax implications for buying, selling, or creating NFTs are not straightforward, and tax authorities are still determining how to apply existing tax laws to these transactions. This uncertainty complicates financial planning for participants in the NFT market and raises the risk of unintended tax liabilities.

The Evolving Landscape Of NFT Legality

As the NFT market continues to grow, so does the legal framework that surrounds it. Governments and regulatory bodies worldwide are beginning to recognize the need for specific regulations that address the unique aspects of NFTs. These emerging regulations aim to provide clarity and stability to the market, but they also bring new compliance challenges.

The global nature of NFT transactions adds another layer of complexity. NFTs are often bought and sold across international borders, bringing into play different legal jurisdictions and regulatory standards. Harmonizing these diverse legal systems is a daunting task and one that is critical for the development of a cohesive global NFT marketplace.

Legal cases involving NFTs are increasingly making their way through courts, setting important precedents that will influence future legal interpretations and regulations. These cases cover a range of issues, from copyright disputes to the enforceability of smart contracts, and their outcomes will have significant implications for the NFT industry.

In conclusion, the legal challenges surrounding NFTs are as dynamic and multifaceted as the technology itself. From intellectual property concerns to regulatory compliance, the legal aspects of NFTs require careful navigation. As the market evolves, so too will the laws and regulations that govern it, shaping the future of this innovative digital asset class.

The Problem With NFTs

The world of Non-Fungible Tokens (NFTs) is marked not only by innovation and opportunity but also by significant problems that raise concerns and contribute to the question, “Why are NFTs bad?”.

Analyzing More Of The Problem With NFTs

A closer look reveals several underlying problems with NFTs:

  • Perceived Value Vs. Real Value: A core problem with NFTs is the disconnect between their perceived and real value. The worth of many NFTs is often driven by hype and speculation rather than tangible artistic or utilitarian value. This discrepancy can lead to a volatile market where prices do not reflect the true value of the underlying digital asset.
  • Cultural And Ethical Concerns: The NFT craze has raised cultural and ethical questions. It challenges traditional notions of art ownership and creation, potentially commodifying artistic expression in unprecedented ways.
  • Impact On Artistic Integrity: For artists, the lure of NFTs can sometimes lead to a compromise in artistic integrity. The pressure to create content that is more likely to sell in the NFT market can influence artistic decisions, potentially leading to a homogenization of digital art.
  • Accessibility And Digital Divide: The NFT ecosystem tends to favor those with access to specific technological resources and knowledge. This digital divide excludes a large segment of potential creators and collectors, particularly those from underprivileged backgrounds or regions with limited access to advanced technology.

Blockchain Legal Issues

Earlier discussions have addressed the legal challenges of blockchain, the underlying technology of NFTs, but further exploration reveals additional nuances worth considering:

  • Data Privacy Concerns: Blockchain’s transparency and immutability, while strengths, also raise data privacy concerns. Once on the blockchain, information becomes almost impossible to remove, potentially leading to privacy issues, especially with personal data involved.
  • Smart Contract Liabilities: Smart contracts are prone to coding errors or unforeseen legal implications. These liabilities can lead to complex legal scenarios where the responsibilities and liabilities of parties in a blockchain transaction are unclear or disputed.
  • Cross-Border Enforcement: Enforcing legal decisions across borders is a significant challenge in blockchain transactions. When a dispute arises, the international and decentralized nature of blockchain makes it difficult to enforce judgments or legal actions.
  • Emerging Legal Frameworks: As governments and regulatory bodies start to catch up with blockchain technology, new legal frameworks are emerging. These frameworks aim to address the unique challenges posed by blockchain but also create a shifting legal landscape that can be difficult for participants to navigate.

In conclusion, the problems with NFTs extend beyond simple technical or market issues, encompassing broader cultural, ethical, and legal challenges. As the NFT space matures, addressing these multifaceted problems will be crucial for its sustainable and responsible growth.

FAQ: Why Are NFTs Bad?

This FAQ section aims to succinctly address some key questions surrounding NFTs, especially everything about the questions “why are NFTs bad?”

Why Are NFTs Bad?

Critics often target NFTs for their environmental impact, market volatility, and legal uncertainties. Concerns also include the potential for exacerbating the digital divide. The perspective on whether NFTs are “bad” varies based on individual viewpoints and contexts.

NFT Laws: What Investors Should Know?

Investors should note that the legal framework around NFTs is evolving. Key considerations include copyright and financial regulations, as well as the market’s inherent volatility and potential legal risks.

Are NFTs Unsellable?

Not all NFTs are unsellable, but market saturation and fluctuating values can affect their salability. The speculative nature of the market adds to the uncertainty regarding the sale and value of NFTs.

Are NFTs Bad?

Whether NFTs are “bad” is subjective. While they offer innovative digital asset ownership, their environmental costs, potential for market manipulation, and legal challenges are significant drawbacks.

What Is The Problem With NFTs?

The main issues with NFTs include environmental concerns, market instability, accessibility challenges, and legal ambiguities, highlighting the need for sustainable practices and clear regulations.

What’s The Problem With NFTs?

NFTs face environmental, economic, legal, and ethical challenges, including energy consumption, market fluctuation, and impacts on artistic and cultural values.

Are NFTs Legal?

NFTs are legal, but they operate in a complex regulatory landscape that varies across regions. The legality involves considerations around transactional frameworks and compliance with existing laws.

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BLUR Is Down 30%, And Whales Are To Blame–Here’s Why

Blur, a decentralized non-fungible token (NFT) marketplace, and OpenSea competitor is under pressure, tumbling by over 30% from its November peaks. While BLUR retreats, on-chain data reveals that BLUR whales have been moving their tokens to leading crypto exchanges, possibly to liquidate.

Whales On A Possible Selling Spree

According to Lookonchain data on December 7, several whales have been offloading large amounts of BLUR. To illustrate, 16.85 million BLUR, worth roughly $8.43 million, were deposited to exchanges in the past 24 hours. 

Notably, one whale deposited 2.54 million BLUR, worth $1.26 million, received from the airdrop to Binance. At the same time, Mandala Capital transferred 2.76 million BLUR, worth $1.4 million, to OKX. 

Mandala Capital sends BLUR to OKX | Source: Lookonchain via X

The deluge continued as another whale, only marked by the associated “0x68b5” address, withdrew 3.31 million BLUR worth $1.79 million from Binance between November 25 and 29 before moving them to the same exchange on December 1. The token had fallen, meaning the whale was down by roughly $65,000.

It is unclear whether the same addresses are sold for USDT or other tokens. However, what’s known is that any whale transfers to a centralized exchange is associated with liquidation. Accordingly, sentiment is impacted when whales move coins in large batches to exchanges, and retailers could interpret their transfers as incoming selling pressure.

BLUR Is Up 220% From October Lows

Thus far, looking at price action, buyers have the lead from a top-down preview. The coin is already up 220% from October lows. Most importantly, buyers have the upper hand, looking at the candlestick arrangement in the daily chart. 

Even though the token is down 30% from November peaks, the failure of bears to force the coin below the 20-day moving average (MA) in the daily chart suggests that the uptrend is still valid. Losses below $0.46, or the base of the current bull flag, might trigger a sell-off. Conversely, any upswing above $0.58 and even $0.69–or November highs, could drive more demand, lifting BLUR to $0.84 or higher in the coming sessions.

BLUR prices trending sideways on the daily chart | Source: BLURUSDT on OKX, TradingView

Related Reading: Binance CEO Disputes JPMorgan Chief’s Critique Of Crypto

Whether the uptrend will resume also remains to be seen. What’s clear, though, is that the broader community is closely monitoring the NFT scene and Blur, the marketplace. The recent upswing was due to the activation of Season 2 Airdrop, which ended on November 20.

Ahead of this, the token was already up 150%, only to extend gains briefly before cooling off in the first week of December.

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NFT Scams: Types And How To Avoid Them

NFT scams have quickly become a major concern in the digital asset realm, overshadowing the growing Non-Fungible Token world. They range from NFT scams on Instagram to complex NFT art frauds like the Bored Ape Yacht Club and Logan Paul’s NFT game. The risks are varied and significant. This guide explores the murky world of NFT fraud, highlighting various forms such as fake NFTs, NFT Ponzi schemes, and common OpenSea scams.

Overview Of NFT Scams

The Non-Fungible Tokens (NFTs) realm has opened a new digital frontier, bringing with it a surge in NFT scams, troubling both investors and enthusiasts. These scams, leveraging the novelty and complexity of NFTs, often catch even experienced participants off guard.

NFT scams vary widely and continue to evolve, from simple phishing attempts to more complex Ponzi schemes. These fraudulent activities occur not only on lesser-known platforms but also on popular ones like OpenSea and in high-profile projects like the Bored Ape Yacht Club. The growth of social media further complicates matters, with platforms like Instagram becoming centers for NFT fraud.

Understanding the range and mechanics of these scams is essential for anyone involved in the NFT space. The risks are numerous, from fake NFTs posing as legitimate digital art to Ponzi schemes presented as attractive investments, and phishing scams targeting valuable digital assets.

NFT scams

True Or Not: NFTs Are A Scam?

The question of whether NFTs are a scam is complex and requires a nuanced understanding of the NFT ecosystem. At the outset, it’s important to clarify that not all NFTs are scams. NFTs, by their very nature, are a legitimate technological innovation, providing a unique way to authenticate and trade digital assets on the blockchain. They have been utilized in various fields, from digital art and entertainment to real estate and identity verification.

However, the burgeoning interest in NFTs has also attracted scammers looking to exploit the hype and the often limited understanding of the technology among the general public. This has led to a significant number of fraudulent schemes within the NFT space. Scams such as selling plagiarized digital art, creating fake NFT marketplaces, or promoting non-existent NFT projects are not uncommon. High-profile cases, like certain celebrity-endorsed NFT projects, have also raised suspicions and added to the skepticism.

The key takeaway is that while NFTs as a concept are not a scam, the ecosystem has been marred by fraudulent activities that prey on the uninformed. The presence of scams does not invalidate the entire NFT space but serves as a cautionary tale about the need for due diligence and skepticism, especially in a field that is relatively new and rapidly evolving. As the NFT market continues to mature, it is hoped that better regulation and informed participation will reduce the prevalence of these scams.

Types of NFT Scams

The world of NFTs, while offering vast opportunities for creators and collectors, is also rife with various types of scams. Here’s a list of the most common NFT scams:

Plagiarized NFTs / Fake NFTs

One of the most common types of NFT scams involves the sale of plagiarized or fake NFTs. In these scams, fraudsters create and sell NFTs that are unauthorized copies of existing digital artworks. They may also create entirely fake NFTs, passing them off as valuable or rare digital assets.

These scams exploit the NFT hype, especially in digital art, by taking advantage of buyers’ lack of knowledge in verifying NFT authenticity and originality. The decentralized, permissionless nature of blockchain, allowing anyone to mint NFTs, presents challenges in identifying these scams. It’s tough for buyers to distinguish between original and plagiarized NFTs without proper verification, leading to fraud and infringement on legitimate artists’ rights and profits.

To avoid such scams, thoroughly research the creator’s background and the NFT’s provenance. While platforms and marketplaces are increasingly vetting creators and artworks, buyers must still perform due diligence before purchasing.

NFT Ponzi Schemes

NFT Ponzi schemes are another alarming trend in the realm of digital assets. In these schemes, early investors are promised high returns based on the investments of new participants, rather than legitimate business activities or profit. The structure inevitably collapses once there are not enough new investors, leading to significant losses for later investors.

These schemes exploit the hype and speculative nature of the NFT market, often using aggressive marketing and false promises of guaranteed returns. They might be disguised as innovative NFT projects or exclusive investment opportunities in the digital art world.

To protect yourself from NFT Ponzi schemes, be wary of projects that promise high returns with little to no risk, and always research the project’s fundamentals and the credibility of its creators.

Rug Pull Scams

Rug pull scams are particularly nefarious in the NFT space. In these scams, the developers of an NFT project hype up their offering to increase demand and price. However, once they accumulate a substantial amount of funds, they abandon the project and disappear with the investors’ money. This leaves investors with worthless NFTs and no way to recoup their investment.

These scams are often associated with new projects that lack a track record or verifiable information about the team behind them. To avoid rug pulls, it’s essential to conduct thorough research on the NFT project, understand its utility, and verify the transparency and track record of the developers involved. Engaging with the community and looking for independent reviews can also provide valuable insights into the legitimacy of a project.

Bidding NFT Scams

Bidding NFT scams are a sophisticated form of fraud that occurs in the auction process of buying and selling NFTs. In these scams, fraudsters manipulate the bidding process to inflate the price of an NFT artificially. This is often done by using fake accounts to place high bids on the NFT, creating a false sense of demand and value.

Unsuspecting buyers, believing the NFT to be more valuable than it actually is, are then tricked into placing even higher bids. Once the NFT is sold at the inflated price, the scammers withdraw, leaving the buyer with an asset worth significantly less than what they paid.

To avoid falling victim to bidding scams, it’s crucial to research the bidding history of an NFT and be cautious of auctions where the price seems to escalate unusually quickly. It’s also advisable to verify the credibility of other bidders, if possible, and to understand the typical market value of similar NFTs.

NFT fraud

NFT Pump And Dumps

NFT pump and dumps are similar in nature to their counterparts in the stock market. In these scams, a group of individuals or a single entity artificially inflates the value of an NFT or a series of NFTs through hype and misinformation. Scammers typically use social media to quickly spread rumors or exaggerated claims about an NFT’s potential value. After they pump up the price and attract other investors, they sell (or dump) their NFTs at a high price. This causes the value to plummet, leaving new investors with a devalued asset.

To protect against pump and dump schemes, investors should be skeptical of NFTs that receive sudden and intense hype without tangible reasons or developments backing them. Independent research is crucial and should not rely solely on promotional materials or social media buzz to assess an NFT’s potential value.

Phishing Scams

Phishing scams are a prevalent issue in the NFT world, where scammers use deceptive methods to steal sensitive information, such as private keys or login credentials. These scams often occur through emails, social media messages, or fake websites that mimic legitimate NFT platforms. The scammers lure victims with the promise of exclusive NFT deals or access to rare digital assets, and once the victims enter their information on these fraudulent platforms, their digital wallets and the assets within them are compromised.

To protect against phishing scams, always verify the authenticity of any communication or websites claiming to be from well-known NFT platforms. Be cautious of unsolicited offers and never share your private keys or sensitive account information.

NFT Airdrop Or Giveaway Scams

NFT airdrop or giveaway scams take advantage of users’ desire for free assets. Scammers promote fake airdrops or giveaways, claiming to distribute free NFTs or cryptocurrencies. To participate, users are often asked to perform certain tasks like sending a small amount of cryptocurrency, sharing private keys, or completing a form with personal information. Once the information is shared or the payment is made, the scammers disappear without delivering the promised NFTs.

To avoid these scams, be wary of any offer that seems too good to be true, especially if it requires an upfront payment or sensitive information. Legitimate airdrops and giveaways usually do not require such actions.

Website Scams

Website scams in the NFT space typically involve the creation of fraudulent websites that imitate legitimate NFT marketplaces or projects. These websites might offer the sale of fake NFTs or pretend to offer services related to NFT trading. Unsuspecting users who transact on these sites may end up losing their funds or digital assets. These scams are sophisticated, with websites often appearing highly credible and professional.

To avoid falling for website scams, always double-check the URL of the website you’re visiting and ensure it’s the official site. Look for signs of legitimacy, such as secure connections (https), reviews from trusted sources, and verified contact information. Be cautious of websites that appear from unsolicited emails or social media links, and consider using browser extensions that can help detect and block malicious websites.

Most Common NFT Ponzi Schemes

NFT Ponzi schemes are significant frauds in the digital asset space, disguising themselves as legitimate investment opportunities. They benefit early initiators at the expense of later participants, often promising high returns quickly, backed by convoluted or non-existent business models.

A common NFT Ponzi scheme form involves platforms claiming to offer exclusive access to rare or high-value NFTs, asserting rapid value appreciation. Investors are urged to buy and recruit others, with the promise of earning from higher future sales. However, returns typically come from new participants’ investments. When new investors dwindle, the scheme collapses, leaving most at a loss.

Another variant involves scammers creating NFT projects with elaborate backstories and promised future utility, attracting investors with high-quality artwork or supposed real-world asset tie-ins. The goal is to boost initial sales and trading volumes, after which the creators vanish, leaving investors with worthless tokens.

To avoid NFT Ponzi schemes, thoroughly research any project or platform, especially those promising high returns. Seek transparent, realistic business models, and be cautious of projects reliant on recruiting new investors for profit.

NFT Scams On Instagram

Instagram’s large user base and visual focus have made it a breeding ground for NFT scams. Scammers exploit its popularity to commit various frauds, from fake NFT sales to phishing attacks. Instagram’s suitability for showcasing digital art allows scammers to use fake or hacked profiles to promote fraudulent NFT projects.

A common NFT scam on Instagram features fraudsters posting digital art images, falsely advertising them as NFTs for sale. These posts often link to fake websites that prompt users to provide personal information or send cryptocurrency for nonexistent NFTs. Another method involves sending direct messages with offers to buy or invest in NFT projects, which are actually scams.

Phishing attempts are rampant as well, directing users to fake websites that mimic popular NFT marketplaces or wallets. These sites steal login credentials, leading to loss of funds or NFTs from the victims’ actual wallets.

Staying safe from NFT scams on Instagram requires a high degree of vigilance. Always verify the authenticity of any NFT sale or project promoted on the platform. Be skeptical of unsolicited offers received via direct messages and avoid clicking on suspicious links. Additionally, cross-reference NFT offerings with official websites or platforms, and never share personal or wallet information on unverified sites.

NFT Art Scams And NFT Fraud

The NFT art world, despite its creativity and innovation, is still vulnerable to an array of scams and fraudulent activities. Common among these are the sales of counterfeit digital artworks, theft of artist identities, and fraudulent investment schemes posing as legitimate NFT projects.

OpenSea Scams

OpenSea, a leading NFT marketplace, attracts various scams. Scammers often list counterfeit versions of popular NFTs for sale, deceiving buyers into purchasing fake or plagiarized art. Another prevalent scam is phishing, using links that mimic legitimate OpenSea websites to steal wallet information and funds.

To counter these scams, OpenSea has taken measures like account verification and flagging suspicious activities. However, users need to stay alert. They should verify NFT authenticity, assess seller credibility, and use OpenSea’s official website to avoid these scams.

How to spot OpenSea scam NFTs
Bored Ape Scam

Scammers have also targeted the Bored Ape Yacht Club (BAYC) collection, known for its high-value and celebrity-endorsed NFTs. The high demand and significant media attention make it an attractive target. Scams related to Bored Ape Yacht Club (BAYC) typically involve selling fake Bored Ape NFTs, phishing to steal these valuable NFTs from owners, and using the BAYC brand in fraudulent investment schemes to deceive victims.

Collectors and investors looking to avoid Bored Ape scams should be wary of deals that appear overly attractive, verify the authenticity of Bored Ape NFTs via official channels, and stay alert to phishing attempts targeting BAYC NFT holders.

Bored Ape Yacht Club scam
Logan Paul NFT Game Scam

Logan Paul, a well-known internet personality, and his associates face a class action lawsuit over their NFT project, CryptoZoo. Announced in September 2021, this NFT-based game claimed to be an “autonomous ecosystem” for trading virtual exotic animals.

The lawsuit alleges that Paul’s team executed a rug pull, promoting CryptoZoo to his followers who were largely unfamiliar with digital currencies. This led to a significant number of them buying these NFTs. Further claims state that the game was non-functional or nonexistent, and the defendants manipulated the market for Zoo Tokens. After selling all their NFTs, they allegedly transferred the funds to their controlled wallets.

Further accusations include that the game did not work or never existed, and that the defendants manipulated the digital currency market for Zoo Tokens to their advantage. After completing the sale of all their NFTs, the defendants allegedly transferred the money to wallets controlled by themselves.

Avoiding NFT Scams: Best Practices

Here are some essential tips to help you stay safe in the world of NFTs:

  1. Do Your Research: Ensure you conduct thorough research on the project, its creators, and the selling platform before investing in any NFT. Look for reviews, community feedback, and the track record of the creators.
  2. Verify Authenticity And Provenance: Confirm the authenticity of the NFT you’re interested in to ensure it’s not a counterfeit. Check the item’s history and originality, which can be verified on the blockchain.
  3. Use Reputable Platforms: Stick to well-known and reputable NFT marketplaces that have measures in place to prevent scams. These platforms often have verification processes for sellers and their NFTs.
  4. Be Wary of Unsolicited Offers: Exercise caution with unsolicited offers that come through email, social media, or direct messages, particularly if they promise high returns or exclusive opportunities.
  5. Secure Your Digital Wallet: Use a secure and reputable digital wallet to store your NFTs. Protect your wallet’s private keys and make sure never to share them with anyone.
  6. Watch Out For Phishing Attempts: Be vigilant about phishing scams. Always check the URL of a website to ensure it’s legitimate and be cautious about clicking on links in emails or social media messages.
  7. Avoid Overhyped Projects: Approach NFT projects surrounded by excessive hype with skepticism, particularly those lacking substantial and verifiable information.
  8. Stay Informed About Scam Trends: Keep yourself updated on the latest scam trends in the NFT space. Knowledge about how scammers operate can be your best defense.

FAQ: NFT Scams

What Are Common NFT Scams?

Common NFT scams are phishing attacks, fake NFT sales, Ponzi schemes, rug pulls, bidding scams, and airdrop or giveaway scams. These tactics exploit the NFT hype, targeting uninformed buyers and investors.

What Is The Most Common NFT Scam?

The most frequent NFT scam involves selling fake or plagiarized NFTs. Scammers create and sell unauthorized copies of digital art or entirely fabricated NFTs, misrepresenting them as valuable.

What Are NFT Art Scams?

NFT art scams include selling fake digital art, using stolen artist identities, or promoting fraudulent investment schemes. These scams target collectors and investors in the digital art space.

What Are Fake NFTs?

Fake NFTs, non-genuine digital assets, include plagiarized copies of legitimate NFTs or entirely fabricated items misrepresented as valuable or rare. Creators make them to deceive buyers into purchasing something with little to no actual value.

How To Avoid NFT OpenSea Scams?

To avoid OpenSea scams, always verify the authenticity of NFTs and sellers, use OpenSea’s official website, be cautious of phishing links, and ensure your digital wallet’s security. Research and due diligence are key in avoiding scams on OpenSea.

What Are Examples Of NFT Fraud?

Examples of NFT fraud include the Bored Ape Yacht Club scams, Logan Paul NFT game scam, Ponzi schemes disguised as NFT projects, and phishing attacks targeting NFT collectors and investors.

Are All NFTs Scam?

No, not all NFTs are scams. While there are fraudulent activities within the NFT space, many legitimate NFTs offer genuine value and opportunities for artists, collectors, and investors.

Are NFTs Ponzi Scheme?

Not all NFTs are Ponzi schemes, but the NFT market has seen its share of Ponzi schemes disguised as legitimate investment opportunities. It’s important to differentiate between genuine NFT projects and those structured like Ponzi schemes.

What Are The Most Common NFT Scams On Instagram?

On Instagram, the most common NFT scams involve fake NFT sales and phishing attacks posing as legitimate offers. Additionally, scams often use hacked accounts to promote fraudulent NFT projects.

NFTs Are A Scam?

NFTs themselves are not a scam. They are a legitimate form of digital asset. However, like any emerging market, the NFT space has attracted scammers exploiting the hype and lack of regulation.

Is The Logan Paul NFT Game A Scam?

The NFT game CryptoZoo, associated with Logan Paul, is currently facing a class action lawsuit alleging it to be a “rug pull” scam. The lawsuit claims the game was non-functional or nonexistent and accuses the developers of financial manipulation. The ongoing case, still awaiting a final judgment, actively raises serious concerns about the project’s legitimacy due to these allegations.

How To Spot Bored Ape Yacht Club Scams?

To spot Bored Ape Yacht Club scams, start by verifying the authenticity of the NFTs through official channels. Additionally, be wary of offers that seem too good to be true and watch out for phishing attempts.

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VESA at Cypher Capital

 

Hi fam,

Today we’re celebrating a union that took place recently when VESA travelled to Dubai for a month of meetings, partnership calls, keynotes, and conferences.

A juicy sized catalogue of VESA works moved into the Cypher Capital Hub in October and this time, we want to celebrate this incredible handshake and share the stories behind the artworks you can see on the walls.

In their own words, Cypher Capital is focused on investing in Web3 infrastructure and applications that will drive the digital economy in the future. The Cypher Capital Hub in Marina is shaping up to be one of the sleekest and most functional spots to work, meet and network.

The Hub has always been a place for art, most notably two works by Banksy in the main conference room – now featuring a VESA as well.

Let’s dive into the stories behind the pieces you can see on the walls of the Hub!

Next time you stop by the Hub, please snap a picture of yourself and your favourite VESA work and tag:

Cypher Capital Group / Vesa Kivinen // LinkedIn

Cypher.capital / artbyvesa // Instagram

https://www.newsbtc.com/wp-content/uploads/2023/11/Cypher-Capital-VESA-video.mp4

Refresh has an honorary place at the VIP room alongside two Banksy pieces.

https://www.newsbtc.com/wp-content/uploads/2023/11/vip-room-Cypher-capital.mp4

 

Integration

First VESA piece you see on the wall as you walk into the space is Integration. The piece represents the dichotomy of worldviews present in our society in relationships between men and women. On the one hand women occupy positions of power like never before and work incredibly hard to pursue and execute those positions. On the other hand, there is a view that supports tearing down all structures of hierarchy in capitalism and science, as they are seen as an oppressive force, rather than a liberating one.

Integration was exhibited at Art Dubai 2022 via the Morrow Collective.

 

Million Dirham Hotel

Residing in the sleek meeting room, is the Million Dirham Hotel. The work is a part of the larger Mirrors- series, which explores value, experiences, and identity. Million Dirham Hotel evokes images of what a hotel with such a high-ticket price would look like. It is an invitation to a world that challenges the ownership vs access paradigm.

The Million Dirham Hotel, like all works in the Mirrors- series entices the viewer with its offering of leveraging IP unseen in the traditional art market. Download the Artivive app and experience the AR version, when you stop by.

 

Truth or Dare- the Currency of Ganesha

Next to The Million Dirham Hotel is Truth or Dare- The Currency of Ganesh, or Ganesh for short. This work belongs to the pantheon of VESA’s early crypto art, inspired by the thousands of years old Hindu tradition of faith and worldview.

Lord Ganesh is revered as the remover of obstacles, the patron of arts and sciences and a higher being of intellect and wisdom. In this piece, Lord Ganesh and his entourage have assimilated cryptocurrency symbols and blockchain code alongside traditional wealth displays. Gold, platinum, and diamonds hold a historical place in our minds as keepers of value, but as an example the smart contracts layered on top of Ethereum are building the wealth of today and tomorrow.

Ganesh is probably THE most complicated work VESA has ever made. It took over 2000 layers of photography of individual paintings and other images before Ganesh started taking shape.

 

Red Eye

Red Eye shows the reality of someone falling into the rabbit hole of crypto. The whirlwind seems endless, and the new information pouring into your consciousness sometimes claims your ability to sleep.

This piece is another one with stunning merits, as it was featured in Forbes in their first ever article on this new movement of art and money in January 2019.

Red Eye was also exhibited at the opening of the immersive Dubai gallery Art In Space. It launces into its AR version via the Artivive app to showcase motion and sound.

 

Compound Defiance

On the way to the VIP room, you can see Compound Defiance on the wall. This work is steeped in legendary moments and is a part of crypto art history. The fluid motion forming a solid symbolizes the decentralized financial system that has no point of central control and therefore free to define its own rules. This freedom has its positives and negatives, but more options mean a more expansive, rather than repressive experience. The jarring pattern blending endlessly might seem chaotic at first, before the beautiful pattern presents its holistic face.

Compound Defiance was the first artwork used on a street legal NFT VESA Art Car in Dubai and it has a VR version made by Zoan.

 

Refresh

Residing in the elegant VIP room, is a piece made in honour of the UAE, called Refresh. It was made in 2020 and it represents the forward-thinking, technologically competent, and culturally mesmerizing country in an artistic way.

The round planet in the centre of the piece is Mars, referencing the Emirati space program. Galloping alongside is a tokenized royal horse, modelled after a real-life specimen.

The two people featured are the CEO of the Dubai Blockchain Centre, Dr. Marwan Al Zarouni and his wife, Mariam Al Zarouni. In the artwork, the two are immersed in the Bitcoin genesis code, as they witness the evolution of their country.

Refresh comes alive with the Artivive app. It has an original soundtrack, and it has been exhibited on large stages in Dubai and Abu Dhabi, as well as extensively in crypto media.

 

Team VESA wants to thank Cypher Capital for showcasing these works!

Until next time, 

VESA & Lotta
Crypto & NFT Artist
All links to physical, NFTs, and more below
http://linktr.ee/ArtByVesa