NFTs have become a hot topic for creators, investors, musicians, and artists, and they are growing at a rapid pace. The wave of NFT is driving up the price of numerous digital properties, such as signed screenshots of tweets and highlight reels of NBA players.
In the first quarter of 2022, NFT sales surpassed $2 billion. In reality, they are accelerating countless digital transactions on a daily basis. The core value is the authenticity that transparent and decentralized blockchain technology can provide.
If an NFT appears to sell for significantly less than other NFTs in the same collection, you should be cautious. Because it could be a scam. Make sure to check that the NFT is real and legit before purchasing it. But how can you tell if an NFT is real or not? In today’s post, I’ll go over this in more detail and explain what you should be on the lookout for.
How can you tell if an NFT is real?
Checking verification marks is the simplest way to determine whether an NFT is real or not. This is something you will be getting if you are actually purchasing an NFT from a well-known NFT artist.
This information is visible in the description and at the top of the page if you purchase an NFT from OpenSea. Below is an example from the NFT trading site OpenSea, with two arrows indicating where the verification marks can be found.
If you purchase an NFT from a smaller NFT artist, you can instead check the contract address on OpenSea under “Details.” Then you can compare this address to the address on the project’s website. If the addresses are the same, you can be confident that the NFT is real. In the example below, you can see how to check the contract address in two simple steps.
Step 1. Find the contract address
On OpenSea when checking out an NFT, go to “Details” and then click on “Contract Address”. It will take you to a page called Etherscan, where you can see the full address. Below you can see a picture of what it looks like when I checked out an NFT from Bored Ape Yacht Club.
Then, at the top left of the page, copy the contract address.
Step 2. Compare the contract address to the address on the project website.
The following step is to visit the project’s website, in this case, the Bored Ape Yacht Club. We can see the verified contract address if we scroll to the bottom of their website. If we compare this address to the one we copied earlier and find that they are identical, we can be certain that the NFT is real. However, If the addresses differ, we do know it’s a scam.
How to avoid NFT scams?
There are several things you can do to avoid scams in the NFT world. Always choose legit NFT trading venues such as OpenSea, Rarible, Sorare, or Solanart. Be careful with messages you receive from other users and avoid fake giveaways and fake NFT projects.
Below I have listed some general tips to avoid NFT scams
- Use only legitimate trading venues such as OpenSea, Rariable, Sorare, and Solanart.
- Be careful with emails that contain links. It is common for scammers to send emails with links that lead to phishing sites.
- Avoid participating in giveaways. Many of these are scams where it tries to steal the information to, for example, your MetaMask.
- Use secure passwords and always enable two-factor authentication if possible.
- Always check the price carefully on an NFT. If it is very different from other NFTs in the same collection, you need to be careful.
- Check verification marks. Most legit NFT sellers will have a blue check mark next to their usernames.
- Check the contract address, which should indicate where the NFT was minted. You can check the creator’s website to make sure the information is genuine.
- Never share your seed phrase (used for recovery) and be smart with your wallet information.
When a digital asset is available, there are effective methods for verifying its authenticity. The same is true for NFTs. Some of the methods mentioned above can be used to successfully verify the authenticity of NFT. It’s important to remember that rich metadata makes it more reliable.