[Gate.io: For Beginners] Is NFT Art Suspicious? fraud risk


The NFT market has suddenly become a boom since the 2020s. The market is growing rapidly and is getting a lot of attention, but it’s also been dubious. It is said that scammers and others have already entered this market.

What is NFT Art?

NFT is an abbreviation for Non-Fungible Token. NFT uses the blockchain technology used in virtual currency, and the blockchain technology has realized a mechanism that prevents data falsification, making it possible to find high asset value in digital data. NFT art was born from this.

NFT art is said to reflect NFT technology in digital art. Since digital art can be easily copied, it was said that there was no way to distinguish which was genuine, and it was difficult to attach a high value. However, as described above, we have realized a mechanism that prevents data falsification, and it has become a viable business. Many artists are now participating.

The reason why NFT art is said to be shady and suspicious

On the other hand, there are reasons why NFT art is said to be shady and suspicious. This is mainly because scammers have entered this market. In fact, the number of NFT fraud cases is increasing, and the problem is getting bigger. In addition, the reality is that there are many people who are forced to give up due to the fact that the legal system has not yet been developed.

Emergence of fake sites

Scammers have created many fake sites. There have been frequent cases of spoofing world-famous virtual currency exchanges such as Gate.io, registering accounts, investing in NFTs, and then escaping. There are actually victims, and many fake sites such as Opensea have been confirmed, and many people have registered.

Solicitation from Discord

Discord is a chat app, very similar to LINE, Whatsapp, Wechat, etc. However, although this app is almost a place for NFT users to exchange opinions, there are scammers who are soliciting investment from an unspecified number of people. The act of defrauding money from there is quite noticeable.

the project itself is a scam

Some projects are listed on the NFT marketplace, but the goal is to defraud users from the beginning. These projects are not handled by major cryptocurrency exchanges, but they are common on smaller marketplaces, so many users are deceived.

Solicitation from SNS

Solicitations from SNS are increasing. Twitter is particularly prominent. A DM suddenly came to me and asked me if I wanted to invest. The solicitation is increasing considerably. When it comes to NFT, it is a popular investment now, so there are many people who are lured and deceived.

No investment is 100%

This is what investment scammers always say, not only for NFTs, but they deceive investors with complaints such as “absolutely profitable” and “guarantee system”. 100% investment is never possible. Therefore, we recommend that you invest at your own risk. We also recommend entering the NFT marketplace through a major cryptocurrency exchange as much as possible. The bigger the company, the less likely scammers will sneak in.

NFT Marketplace

Gate.io allows you to enter the NFT marketplace and actually do business. To do so, you will need to open an account. If you want to sell your work, open an account. I also introduce it in the following article.