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bitsCrunch 2022 NFT WASH TRADE REPORT is ready for you.
Even with the whole concept of NFTs being relatively new, people are actively getting themselves involved in the crypto industry. NFTs and NFT collections have taken the crypto industry by storm, particularly in the last two years. As per UnleashNFTs, more than $19 million worth of cryptocurrency was invested in NFTs in the previous quarter of 2022.
Let’s take a look at the most common practices such as using popular NFT tools in tracking NFT collections before investing in them!
When it comes to collecting NFTs, they are indeed a young and relatively speculative investment. The value of a project as an NFT or an NFT collection is erratic and fluctuates based on many factors, one of the most important factors being the demand for the NFT. Early discovery of a new NFT trend can pay off handsomely in the long term. Some NFTs, for example, that were formerly offered for cents on the dollar have been sold for thousands of dollars.
Source: https://www.unleashnfts.com/
In the current market scenario, there are several reasons to motivate investors to purchase assets that have been made into an NFT. Some of the important reasons are:
A great example of how NFT can shift perceptions about artwork worldwide is when Vignesh Sundaresan bought artwork for $69 million at an auction. He believes NFTs are storehouses of value and collectible items. Sundaresan, in an interview with CNBC, mentions that NFTs would eventually become a new commodity class that links buyers and sellers around the world.
Several NFT marketplaces provide NFT collections for purchase, sale, exhibition, and even minting. Popular marketplaces include OpenSea, Rarible, and X2Y2. Users are usually wondering how they will find and identify a good NFT project at this point and time.
Source: www.unleashnfts.com
In reality, it is quite easy to find NFT projects and collections that are good; after all the price of such NFTs and collections is defined by how rare and unique they are. The most logical inference can be that the more uncommon an NFT is, the higher the prices are. Another vital step is to know more in detail about the creator of the NFT collection, and the reason why the collection is unique.
Here’s a very common term that goes around in the crypto world “Do Your Own Research”. The term suggests that it is important for the user to study the projects they are looking to invest in and discover the intricacies of the collection.
Listed below are a few factors that need to be considered during the process of researching NFT collections.
When a user starts looking to invest in an NFT collection, the very first thing that needs to be evaluated is the legitimacy of the collection. Counterfeit NFTs and NFT collections are the most common scams that new investors face, not just new investors, even the ones who have been in the industry for a long time. Since new investors normally fail to properly analyze the validity of the NFT collection, it makes them a victim of fake NFT collections, which inevitably cost them thousands of dollars.
For example, Bored Ape Yacht Club is currently one of the most popular NFT collections in the market. There is no surprise there are numerous copies and pirated collections available on NFT Marketplaces. One of the best methods to verify is to look for the verified tick mark next to the collection or the individual NFT.
Aside from its authenticity, the user appeal and beauty of the NFT artwork must also be considered. If the NFT artwork of the collection is unappealing, the investment worth may suffer in the future. As a result, picking the NFT collection with the most appealing artwork for the lowest investment risk and the best possibilities is the leading route to take.
While exploring the huge realm of NFTs, investors may come across the word “Blue Chip” fairly frequently. A new NFT collector or investor should understand what a blue chip NFT is and why they are so valuable.
“A blue-chip NFT is well-known, well-established, stable, and regarded as an excellent long-term investment. Blue chip NFTs and their collections are also believed to be a safer investment than others, with a track record of growth and wealth creation. “
When it comes to collections, Blue-Chip NFT projects are a fantastic long-term investment.
One of the first things to look for in the original team of any NFT collection is whether or not the entire team has been doxed. Once the legitimacy of the team behind the establishment of the NFT project is confirmed, the collection is safe and secure for investment; otherwise, users can specify not having to invest in it. Users should not be concerned if the collection is completely doxed. One of the best examples of a Blue-Chip NFT collection would be the Cryptopunks.
Before diving deeper and understanding how the Market cap affects an NFT collection, let’s start with understanding the definition of the Market Cap.
Source: https://www.unleashnfts.com/
“The total market value of the NFT collection calculated as the sum of each NFT valued at the average trading price of the collection.”
Source: https://www.unleashnfts.com/
Using the NFT market cap to predict how stable an NFT collection is similar to saying that a huge ship can maneuver through terrible weather. Similarly, an NFT collection with a higher market cap is more likely to be a reliable investment than an NFT collection with a lower market cap. Digital currencies with lesser market capitalizations are more subject to market whims and can swing between large profits and devastating losses.
Source: https://www.unleashnfts.com/
Evaluating the rarity of an NFT within a collection is a skill that everyone can master. Understanding an NFTs rarity is bound to help investors evaluate the worth of a certain NFT in a collection. The basic mantra being the rarer the NFT the higher its value. Whether users are shopping for their first NFT collections or have already purchased a new NFT collection, understanding what makes an NFT collection unique or rare isn’t complicated.
Let’s start with what makes an NFT rare by following the steps mentioned below!
To determine the rarity of an NFT, investors may evaluate an individual NFT or search the whole collection for numerous NFTs that come into the rarity scores of the investors desired range. The first step being, investors need to decide if they want the rarity score of an individual NFT or to assess a complete collection to locate the rarest NFTs that they may be keen on purchasing.
Investors on selecting an individual NFT or a complete collection that they want to check the rarity of begins with the selection of a rarity tool that gives the best results. This can be challenging with the evolution of various technologies especially for data analysis to be used for.
Below is a list of the top 5 rarity tools available for investors in the market:
Post choosing the rarity tool that suits the requirements. An Investor can search for the NFT collection on a marketplace and enter the token ID of the digital asset to find its rarity. An investor can find the token ID of the NFT in question under the details section in the marketplace. Pasting the Token ID of the NFT in the rarity tool will provide the investor with the rarity rank, along with a summary of its features.
Since we are dealing with the assessment of a collection, investors need to simply search for the NFT collection of their liking, using a rarity tool of their choice, with appropriate filters to identify the right NFTs they are searching for. The majority of NFT rarity tools allow you to filter by price, rank, and attributes.This is the easiest method for locating NFTs in a collection that meets your budget and rarity rank requirements.
The rarity of an NFT collection is influenced by a variety of elements, including Trait Rarity (TR), Asset Rarity (AR), and Quantity Available.
One of the measures to undertake in evaluating the worth of NFT collection is the NFT volume traded. To start with, users can consider a blue-chip NFT collection that would provide a strong return on investment in future, whether or not it is necessary to hang onto it for more profit. Most collectors, traders, and NFT enthusiasts keep monitoring the volume traded metric to evaluate NFT collections.
It is important to know what the Trading Volume of an NFT collection means. This refers to the total amount of currency as ETH or USD exchanged between a buyer and seller within a specific period.
Such trading volume can be analyzed using NFT tools from bitsCrunch, which is one of the most user-friendly data-analytics platforms for evaluating NFT collections. One of the most attractive features of the platform is that it automatically displays the top NFT collections based on the ranks in the last 24 hours. When users gain access to an NFT collection on the platform, it displays statistics such as NFT collections that have been sold, the trading volume of the collection and so on.
Source: https://www.unleashnfts.com/
Marketplaces like Rarible display the 24-hour trading volume of NFT collections in ETH equivalent and an overall market cap of the NFT collection in ETH.
Within the NFT space, assets move quickly, because of which tracking the dates when NFTs get dropped, auction openings etc becomes difficult, if not impossible. Tracking large-scale deals and collectors doing trades is even harder. As a result, several businesses have created complete tool suites to assist and ease the process.
Currently, many services make it simple to collect information about both projects and traders. The platforms that provide such service include Etherscan, Rainbow Wallet, Ninjalerts and Icy.tools. All these platforms ensure that users will discover NFT projects that are trending with relative ease. This enables users to track volume, sales history, and more.
With the growing interest among investors heading towards NFT collections, sadly there has been just as much negative attention towards such NFT collections. An increasing tide of investment-style fraud has caught up with the crypto realm. Interestingly, the most commonly encountered issue that has been consistently associated with NFT scams is Wash Trading.
Let’s take a look at the most common NFT scams!
Wash trading is a market manipulation strategy in the crypto market, in which a trader purchases and sells NFTs with the singular purpose of disseminating false information to the market. This eventually impacts an NFTs trading volume and price. The impact is usually beneficial to the manipulator. When wash trading levels are high, prices of NFTs and NFT collections need to be rigorously scrutinized.
Source: https://www.unleashnfts.com/
Scammers have successfully imitated NFT markets. These sites can appear almost identical to the original marketplace and can fool even the most seasoned NFT collector into paying enormous sums of money, for something that is in reality worthless. Under such conditions NFTs that normally sell for thousands of dollars will be priced at a fraction of the true value on such scam stores.
The NFT space is rife with fraudsters, and users can find it very scary to deal with the different scams. Cybercriminals are getting more innovative with their scams, but the NFT tools to tackle such scams are also getting innovative. One of the best resources to tackle such scams is from bitsCrunch. For an investor looking to keep track of their favorite NFT collections, the best resource offered by bitsCrunch to monitor on a real-time basis the NFT dashboard for analytics or NFT portfolio tracker is the Unleash NFTs. Stay tuned to bitsCrunch for more such interesting updates on the developments in the NFT realm.
Frequently Asked Questions
NFTs are Non-Fungible Tokens, and in layman terms, representing digital art or collection, video clips of best moments in the sports and entertainment field, gaming skins and collectibles, stored in a distributed ledger powered by blockchain technology. These are unique items and are not interchangeable with another NFT.
Generally, things are valuable when they are scarce. There is only one Mona Lisa. There are only 59 Le Bron James dunking NBA Top Shots (one of which sold for $US387,000).
The primary difference between the two is that unlike cryptocurrency and digital currency, NFTs cannot be traded for each other as they are unique. representations of real-world assets. Cryptocurrencies and digital currencies can be traded for each other as there will be no loss to their value.
An NFT is a unique digital signature that you can attach to an asset. Whether that’s a song, or an image, or a piece of footage, a unique digital signature is like a fingerprint that contains information like who created the asset, when, and any conditions on its future sale (for example, whether or not the creator gets a percentage of when it is on-sold).
BCUT is the native digital utility token, it provides access to bitsCrunch services and the bitsCrunch network.
BCUT is the native digital utility token, it provides access to bitsCrunch services and the bitsCrunch network. It is designed to play a vital role in the functioning of the bitsCrunch ecosystem and is intended to be solely used as the primary utility token on the network.
We are a Cross-functional team with more than 25+ years of experience in Data Analytics & Artificial Intelligence and Blockchain. We already have all the NFT data since its inception. We blend our AI expertise with the Blockchain to bolster the NFT ecosystem.
We have built a model to identify the impersonation of artworks, thereby preventing the Provenance of the artist and the artwork. We are offering our services in a SaaS manner, wherein the customers can stake a certain amount of our native tokens to avail our services.
We haven't launched our BCUT Token yet, but we will send out a confirmation on the launch of the token on our official website and official Telegram channel.