Non-fungible tokens (NFTs) are digital assets on the blockchain. There are many types of NFTs; they can be art, music, photography, images, memes, or virtual fashion and are registered on the blockchain to guarantee payments to their rightful owners through royalties.
The NFT industry has snowballed over the past couple of years, going from $82.5 million in value in 2020 to a whopping $17 billion in 2021, and is forecasted to increase to over $80 billion by the end of 2025. However, as the NFT industry grows, so does the number of NFT scams.
In 2021 alone, cybercriminals in the crypto space stole $14 billion through various NFT scams. With such high prices of NFTs and significant investments on the line, one has to make sure to avoid them. The first step is understanding what they are and how each NFT scam works.
In this article, we will first explain what NFTs are and go through all common NFT scams prevalent in the industry, after which we will bring some real-life examples of the largest NFT scams the sector has experienced. After which, we will break down some measures to take to avoid getting scammed.
Let’s dive right in!
What are NFTs?
NFT stands for a non-fungible token, a piece of digital art registered on the blockchain. However, it’s not just art; there are many types of NFTs, and several other things can be made into digital tokens, such as music, videos, images, photography, or even a…