NFT Beginner’s Guide: How To Spot a Fake NFT

NFT Beginner’s Guide: How To Spot a Fake NFT

The non-fungible token space, or NFT space, is relatively new. This means that confusion and misinformation is quite common and unfortunately, scammers never hesitate to swindle unsuspecting newcomers out of a buck or two. In this guide, we’ll explain how to verify the legitimacy of an NFT and what to do when you run into a duplicate.

What’s the difference between a non-fungible token and a non-fungible image? 

NFTs, or non-fungible tokens, are cryptographic assets on a blockchain stored with unique authentication and metadata that distinguish them from each other. Usually built with security and authenticity in mind, blockchains present the opportunity for creators and collectors to buy, sell, and store these digital assets. The important distinction here is that the art or media aren’t usually stored directly on the blockchain, but rather through unique peer-to-peer file storage links that act as digital representations of the asset.

Now that you know what an NFT is, you should also know how to discern which media asset is linked to the official token of your favorite creator.

4 Tips on Assessing the Authenticity of an NFT:

#1: Verify the Artist’s or Seller’s Identity

Verify the artist’s or seller’s identity prior to engaging with the asset to ensure that your purchase is legitimate. Perhaps the artist has an official website or a verified social media account. If they do, scan through the platform to discover whether they have any existing verified profiles on the marketplace in question.

#2: Access the Official Website or Social Profiles

Once you’ve confirmed that the seller is who they claim to be, you should also make sure that you only obtain the collection links from the official website or social media profiles associated with the project.

Cyberthieves frequently use illegitimate phishing sites to deceive Internet users into revealing personal, crypto information. These sites often appear authentic because scammers tend to make slight adjustments to the domain. Luckily, this tactic isn’t always foolproof and with special attention to the link, you can manage to avoid falling victim to the scam. Take a look at the two collection links below.

#3: Verify the Contract Address

Most NFT marketplaces list the contact address on the detail section of an NFT. This can be a helpful tool to verify the authenticity of the NFT. Please note the importance of checking to make sure that the contract address of the NFT matches the one shared by the project owner.

#4: Look for Red Flags 

  1. The number of owners for a mass collection drop is low on an NFT marketplace. For example, below you’ll see that there are only nine owners listed on this “DC NFT Collection” Opensea profile. This is one glaring red flag as the “DC Fandome NFT Collection” was one of the largest drops in 2021 with over 800,000 NFTs minted on the Palm network.
  2. Beware of fake moderators that send you links through direct messages on Discord. Actual platform moderators should be assigned an admin or mod role in the app. As a general rule of thumb, Palm network and Palm NFT Studio moderators will never send you a direct message first.

We remain committed to providing you with a secure and fair experience and prioritize your creative license to interact with the blockchain medium in meaningful and imaginative ways. Our hope is to continue to empower you with practical information to get ahead of cryptocurrency theft.