I remember when NFTs started, everyone said this would be the newest most amazing thing and that it would totally transform technology where everyone would be using them control transactions and prevent fraud, and would be more than just a fad for early adopters.
Of course since their inception in 2015, non-fungible tokens (NFTs) have seen a rapid growth in both popularity and value. In 2022, Brand companies left and right have been releasing NFTs to “newsjack” and get their name in the news, even if no one actually buys the NFTs.
This has led to a corresponding growth in scams, as criminals attempt to take advantage of the enthusiasm around this new technology.
NFTs are digital assets that are unique and cannot be divided into smaller units. This makes them well-suited for use in virtual worlds and other online applications, as each asset can be easily identified and tracked. This is what we were told.
The first NFTs were based on the Ethereum blockchain, but there are now a number of different platforms that support them. These include EOS, NEO, Cardano, and TRON.
There have been several other prominent exit scams in the NFT industry. One recent example is the Prodeum scam. In this scam, the developers raised over $11 million by promising to create a revolutionary new way to track produce using blockchain technology.
However, after raising the money, they disappeared without a trace, taking all the investors’ money with them. They also shut down the website leaving only the word “penis.”
Other notable examples include Thingschain and Darcrus. In both scams, the developers raised large sums of money by promising to create innovative new platforms using blockchain technology. However, after taking the money from investors, they failed to deliver on their promises and disappeared with the funds.
Also many artists have criticized the practice, claiming that NFT creators have stolen their work for mass gain. Even Wikipedia got in on the act, refusing to acknowledge the practice as ‘art’ under its guidelines.
OpenSea, the NFT marketplace that valued itself at $13 billion after raising $300 million, claims that more than 80% of NFTs created for free on its platform were either plagiarized from other artists or spam. This literally means that it’s a black market by definition.
This is a major issue for OpenSea, as it devalues the NFTs that are legitimately created and traded on the platform. It’s also frustrating for users who spend time and money creating original content, only to see it copied and used without permission. This shows that despite the claim that NFTs would be used to prevent fraud and track real artwork, it was being used just for the opposite.
OpenSea says it’s been working on a solution to this problem, and is currently implementing new measures that will “more effectively prevent plagiarism and spam.” But it’s not clear yet what those measures will be, or how effective they will be – since most artists aren’t on OpenSea and can’t actively monitor if their artwork is being stolen.
These scams have caused many people to lose faith in NFTs as a whole. Many artists and developers have criticized NFTs for being nothing more than vehicles for fraud and theft. Even Wikipedia has refused to recognize NFTs as ‘art’ under its guidelines.
Worse, NFT art aren’t really NFTs. When purchasing NFT art right now, it’s really nothing more than directions on how to access or download an image. The image is not stored on the blockchain and the majority of are hosted on web 2.0 storage, which is likely to end up as a 404 in the near future, meaning the NFT has even less value than nothing. I bet you didn’t know this.
However, even though there is a rise of scams, this isn’t just about NFTs.
For any market in order for existing investors to profit, new buyers have to be drawn into the market. So too NFTs, with something illusory attached to the digital assets.
There’s virtually nothing humans can’t turn into a market. But increasingly there are speculative bubbles in things with absolutely no fundamental value. NFTs have joined Bitcoin and other digital currencies in this category in recent months.
However, not all NFTs are scams. There are many legitimate projects being developed using NFTs that are not involved in any form of fraud or theft. These projects are helping to legitimize NFTs as a whole and show that they can be used for legitimate purposes. Yet, they aren’t being promoted via message boards and groups trying to make a quick buck.
Blockchain technology is revolutionizing many industries, and the supply chain industry is no exception. One of the main functions of blockchain-based NFTs in supply chains is authentication. By tracking the movement of goods through the supply chain and recording it on the blockchain, businesses can ensure the quality and authenticity of their products.
In addition to authentication, another benefit of using NFTs in supply chains is transparency. All data on the blockchain is immutable and transparent, so businesses can track the origins of their products and verify that they have been processed according to regulations. This helps to build trust between businesses and consumers.
NFTs are still in the early stages of development, but they show great potential for use in logistics applications. For example, IBM has partnered with food giant Walmart to develop a blockchain-based system for tracing food items from farm to table. This system will use NFTs to track items such as meat and produce, ensuring that they are not contaminated and can be traced back if there is a problem.
Other companies are also looking into using NFTs for supply chain applications. For instance, Chinese e-commerce giant Alibaba has teamed up with logistics firm Cainiao Network to create a blockchain platform for tracking shipments. The platform will use NFTs to record information such as package tracking numbers, delivery times and temperatures. This will help ensure that goods are delivered on time and under the correct conditions.
As more businesses adopt blockchain technology, we can expect to see NFTs playing an increasingly important role in ensuring the quality and authenticity of products throughout the supply chain. Somehow to be taken seriously, there needs to be some sort of governance over NFTs and a way to ensure that the market isn’t all about scams and a quick buck.
Until this happens, NFTs will still be 80% scams.