NFTs have had a wild ride this year. Tokenized digital art was catapulted into the public earlier this year, fueled by the sale of Beeple’s The First 5000 Days for a record $70 million.
Following this, there was a sharp drop in sales, leading many to conclude that NFTs were doomed. However, trading volume and Google searches have increased in the last month or so.
As a result, scammers have come into the NFT area in the aim of inflicting havoc through a variety of techniques of exploitation.
NFTs are regaining popularity.
When the “crypto crash” hit in May, sales of NFTs dropped as well. According to nonfungible.com data, overall sales fell from a seven-day high of $176 million on May 9 to $8.7 million on June 15.
They also saw a decrease in the price of popular NFTs. During the slump, for example, the average selling price of a CryptoPunk fell from $99,720 to $50,840.
Based on the facts, it’s easy to see why many people believed that the NFT bubble had finally burst.
However, the digital art sector’s prospects have improved since July. Messari data analysts indicated that popular collectibles marketplace OpenSea achieved a record year to date volume of $1.02 billion.
Meanwhile, a look at Google Trends for the search term “NFT” reveals a noticeable increase in worldwide searches.
The week of July 4–10, search interest in “NFT” reached a low of 24. However, a consistent increase in search volume since then has pushed the current interest rating to 61.
Scammers attempting to profit from the digital art market
The revival of NFTs has also resulted in an increase in NFT frauds. Fake art, the use of stolen credit cards, and phishing schemes are all mentioned in the piece.
It highlighted the instance of a Serbian artist named Milos Rajkovic, who is most known for creating strange animation loops. Rajkovic was aware of NFTs but remained uninvolved in the tokenized digital art scene.
He was taken aback last month when he saw 122 of his pieces for sale on OpenSea. While they were quickly removed, another fake later arose, doing the same thing.
“Everyone is being robbed. I feel accountable since they like my work and someone is taking advantage of me to take from them. It’s quite aggravating.”
According to digital security experts, fraudsters are increasingly taking advantage of NFTs because many artists and collectors are not crypto literate. They claim that this makes for “easy marks.”
Furthermore, the decentralized structure of NFTs provides a cover for scammers to operate.
Benny Taveras, an NFT investor who spent $700 on a bogus Rajkovic piece, claimed he had the option of tracking the scammer’s transaction history. However, he admits that his money has been lost.