“Bruh, haven’t you invested in cryptocurrencies or NFTs yet?” Has this been one of the topics of conversation with your pals lately?
Gone are the days where the laymen feared security by investing in cryptocurrencies and trading them for NFTs at Rarible, Opensea, and many more marketplaces out there. Although crypto investments belong to the high-risk, high ROI category, people, especially HNIs, are considering the risk worthwhile for their future.
According to market capitalization data from the first week of November, Ethereum and Bitcoin ranked first and second, respectively, with gains of $67,700 and $4800. The surging condition has wiped out the hesitation among the public about investing in Ethereum. Further, to augment the ETH and make it even more performing, people are swarming to NFT marketplaces. On the other hand, marketplaces are encountering threats through scamsters and fake sellers.
The question is: How can an NFT market enhance its credibility while striking a balance between the two? It has long been a concern among young crypto enthusiasts and investors.
Before getting into the nitty-gritty of raising the bars with NFT marketplaces, let’s understand the potential of NFTs.
Have you watched movies like Red Notice, where the demand for art is enormous, which is also why art theft and forgery are serious issues in several countries? Such films speak for what arts stand for in the real world in terms of monetary value. Real-world artists have started stepping into the digital and crypto world to safeguard their arts from thefts and scams at the advent of blockchain technology, cryptocurrencies, and NFTs.
The traditional artists have now transformed into digital artists who could have crafted any art form like a painting, poster, gif, meme, gaming collectible, or even music and video clips minted as NFTs, encrypted with tokens and stored in a blockchain. Like a traditional art auction, digital arts also get auctioned off almost every hour today in the NFT marketplaces.
The NFT collectors want to multiply their cryptocurrency investments by trading them for tokenized digital art on the market.
Each collector possesses the brag-worthy rights to the art form they own. Further, they can sell the art to another seller in the marketplace whenever they want at a profitable price.
Decentralized Finance, popularly known as Defi, also opens doors to use NFTs as loan collateral, further benefiting the collectors and the creators.
All of this is not an envision but happening already in the crypto world — Beeple sold his artwork for $69 Million, followed by Cryptopunks for $11.8 Million. Global organizations predict the value of NFT to increase up to 10X by the end of this decade.
But what if we say the price hike is well-influenced by wash trading occurring during NFT trading in the marketplaces? Now, this is a big concern to the NFT fraternity, isn’t it?
So, what are the ways to standardize an NFT marketplace and increase credibility among NFT enthusiasts? Let’s look into some of the ways to do it effectively.
The very first thing to note when you are all set to invest or become an NFT collector, you have to ensure that the crypto wallet should be compatible with the marketplace you wish to buy from.
Some of the most trusted wallets are:
-Available as browser extensions
-Store your private keys on the browser
-Easy to set up
-Safer than other web wallets
-Provides access to Ethereum Blockchain
-Enables users to set gas fee limit
-Supports over 70 blockchains.
-Seamless web, desktop, and mobile synchronization
-Allows hardware wallet integration
-Enables easier usage of dApps across devices
-Personalized and secured transaction (Users can transfer tokens using usernames instead of public wallet addresses)
-Provides hassle-free cloud backup
-Supports / Access to Ethereum Blockchain only
-Exclusive for Blockchain Games and NFTs
Every NFT marketplace follows a verification process to make sure that the users are experiencing safe transactions.
Now, let’s take Rarible, for instance. Like the blue tick marks you see on Twitter and Instagram on verified profiles, Rarible does the same with yellow tick marks on authentic user accounts.
It applies to both collectors and creators.
-Upload a profile picture
-Add a cover image
-Provide a Bio
-Link your profile to your Twitter handle
-Collector exclusive: You should own NFTs created by other verified and unverified users.
-Creator exclusive: Minimum of one NFT minted on Rarible is mandatory.
-The review request submission goes to the reviewer’s queue.
-The reviewer checks the profile for the details mentioned above (profile picture, cover image, and bio) and the wallet address for verified Ethereum Wallet Address. If these criteria cannot be met, then the request will be rejected.
-If the criteria are met, then the reviewer shall proceed to verify your Twitter handle for frequent promotion about your works that you’d be selling at Rarible.
-Additionally, the reviewer also checks for your WIP to ensure that Google Images are not going to be used and the request placed is a legitimate one.
-The reviewer performs reverse image searches on the NFTs that have been posted by you on Rarible already.
-If all these add up and turn positive, the reviewer approves your request.
Let’s pause for a moment. Now, you might have a question: “What if Google Images are copied and minted as NFTs?” First of all, the account verification will be withheld in such cases. Secondly, the marketplaces use tools like Crunch Davinci to identify copied, duplicates and bootlegged NFT selling.
Speaking of which…
NFT marketplaces are flooded with scamsters and wash trades. It is one of the most crucial things you need to know before stepping into the NFT marketplace as a creator or collector.
Some points to note:
-Fake or identical assets (NFTs) exist. So, get awareness and updates about such activities and associate with renowned marketplaces only.
-Beware of fraudulent buyers and sellers.
-Do not get carried away by giveaway alerts. Remember, NFTs are treasured possessions and are not given for free unless a social cause is behind.
-If you are a part of the NFT frenzy on Social Media, then you ought to know this — scamsters create hype and spread illegitimate information about NFTs to attract buyers. Be a part of a genuine community that has people in it whom you already know personally.
Know more about NFT Scams in-depth here.
If you are into buying and selling stocks, then you must be very familiar with wash trading. Yes, it is referred to as the unethical price hype of NFTs within a marketplace.
While this is frequently happening in marketplaces, are there ways to bring down the wash trade rate?
Rarible, one of the top NFT marketplaces globally, has been using Scour to study buyer-seller patterns, identify wash trading and bring down the rates of wash trades. The AI-empowered tool reports details like the total number of wash trade volume, the total number of wash trade transactions, number of wash traded NFTs, wash traded wallet details, and much more.
If you may ask, “Do I, as a collector or creator, get to see these details of a particular NFT or marketplace?” then we say “Yes.”
Updates about top NFTs? We’ve got that.
NFT price tracking information?
Wash traded NFTs?
Wash trade volume, transaction, percentage?
We’ve got that too!
And we’ve got a lot more to disclose about the NFT and crypto fraternity to the virtual world enthusiasts.
We know that the game got interesting. But, here we come with the launch soon to provide you more information from data to a dashboard, everything about NFT, NFT Scams, Wash trades, and guard the NFT community with our cutting-edge AI-empowered Blockchain Analytics tools.