The state of NFTs in 2022
Last year we discussed what NFTs are, as well as some common NFT scams and safety tips. We’re now checking in again to give you an update on what’s currently happening in the NFT world. But first…
What is an NFT?
NFT stands for non-fungible token. No, they have nothing to do with mushrooms. When something is described as “non-fungible”, it means that it is unique and cannot be copied.
NFTs are digital objects that represent mundane objects such as music records, artwork, videos, etc. They are usually sold online for cryptocurrency and are seen by many as collectibles. Because NFTs are assets on a blockchain and all have unique identification codes, proving ownership is not a problem.
Bored Ape Yacht Club, CryptoPunks and VeeFriends are currently three of the most popular NFT collections.
The status of NFTs in 2022
If you compare the NFT market from 2021 to 2022, you will notice that the hype has subsided. It seems that since last year, when the buzz around NFTs peaked, people have steadily lost interest in them.
Many different factors contributed to the decline in interest in NFTs, but below are some of them:
- Unregulated market practices — There is no standard method of how to sell NFTs, which creates opportunities for fraud.
- Crypto Price Plunges – Cryptocurrency values fell in 2022, affecting the value of NFTs.
- Volatile Investment Probability — Due to their depreciation, people are more hesitant to invest in NFTs.
Top 3 NFT Scams 2022
Fraud is a constant concern in the NFT world. Here is a list of the most common NFT scams:
- Fake NFT Websites – There are many fake NFT websites that pretend to be legitimate websites.
- Fake offers — Impersonating well-known NFT trading platforms, scammers can send you emails claiming that someone has made an offer for your NFT. The emails ask you to click a button:
The button leads to a phishing site that will ask you to connect to your wallet and submit your seed/recovery phrase. Scammers can register your credentials and hack into your wallet and steal everything you have!
- Fake Tech Support – In these scams, scammers will send you emails or messages via Discord saying that there is some kind of technical problem with your wallet or account.
Once again, they are looking for any credentials they can use to access your account and steal your NFTs or crypto.
We’ve also seen a lot of fake NFTs and NFT giveaway scams, so be careful.
How to stay safe from NFT fraud
Trend Micro Check – our 100% FREE browser extension and mobile app – can protect you from scams, malicious websites, dodgy emails and more! If you come across something dangerous online – like a fake NFT site or phishing email – you’ll be alerted in real time so you know to stay well away.
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