Let’s Talk About NFTs

Let’s talk about you and me, let’s talk about all the good things and the bad things that could be…

Yup, NFTs.

What is an NFT?

NFT is an acronym for Non Fungible Token. That’s simple enough, it means something that is unique and can’t be copied. But a token? Oh, so not the actual thing, just a reference to it? Exactly. Which is why NFTs are perfect for what is known as “the blockchain”. The blockchain is a just a descriptor for effectively a distributed database. On that database resides NFTs which are just bits of information detailing who owns something, but not the actual thing. When you “buy” and NFT the only thing you own is the data location on the blockchain. This would, in the case of NFT “art” contain a link to web address where the image is stored. Although you’ll own the receipt for the purpose (the actual non fungible token) if the hosting address ceased to exist or was updated your NFT would then be pointing to an invalid location which you do not own and have no control over (unless you pointed it to your own server).

What about the monkeys?

Oh, you mean  The Bored Ape Yacht Club.

The bored ape is just one of many collections by various individuals and organisations that were sold for eye watering amounts of money.

So there’s money in NFTs?

For some people yes: those that initially sold NFTs. To date, effectively every NFT artwork ever sold has not maintained its value. Famously Youtuber Logam Paul paid $623,000 for an NFT in 2021 which is worth $10 today. Imagine making something for $10 and being able to sell it for $623,000….. we can only dream.

Are NFTs always scams?

Cryptocurrency and blockchain are definitely a thing. However, the chances of being scammed are way higher than the chances of them being legitimate. Cryptocurrency in general is unregulated and fraught with scams and scammers with multiple “exchanges” failing due to fraud. It’s really a case of buyer beware. If something’s too good to be true, then it probably is.

Someone wants to buy NFTs of my work, should I do it?

It’s possible that there are legitimate art collectors who want to buy NFTs of your work. I can’t really think of a reason why they would want an NFT of a physical piece of art when a physical artwork is literally a non fungible token, but if they do you still need to be cautious. In my experience it’s going to be a scam, either phishing to get access to some or all of your accounts, or just plain old financial fraud or money laundering.

How can I avoid being scammed?

If you’re messaged about your work as NFTs you can be fairly sure it’s a scam if:

• the buyer doesn’t ask about a specific piece or pieces of art.
• they’re in a rush.
• the buyer showers you in praise about how your work resonated with them without referencing a specific work, or mentions any of your works specifically – especially if you use specific titles or have a very clear theme/niche that you work in.
• they don’t accept any of your suggested payment methods and instead want you to log in, or register on some “broker site”.
• never confirm any of your personal or bank details to a third party.
• don’t believe any screenshots the buyer sends you stating that the transaction is complete – if the transaction isn’t being shown in your account it hasn’t happened (I’m not saying that delays don’t happen, but until it’s confirmed your side do nothing)
• don’t fall for the “I’ve accidentally overpaid you, can you send me the difference back” associated scam. That transaction will be fully reversed by the scammer AFTER you’ve sent them the difference leaving you out of pocket.

What does an NFT scam look like?

It just so happens I have an example for you. I treat every unsolicited communication on social media as suspicious until proven otherwise. This is a prime example of how the scammers operate. In this case this message was received on the Art Swansea TikTok account when there was only one video that contained no clear images of any art. As you will see when I refuse to use their system they just disappear. A genuine buyer will work with you and any legitimate buyer will be happy to use legitimate payment methods. If I had continued, the next thing would have been the scammer directing me to a site designed to either steal my data or place malware on my devices, or both.

If they were a legitimate buyer they would have had no trouble providing a contact email address, or suggest an alternative. There was literally zero interest in the Art Swansea account as an artist, nor any specificity in regards to what they were looking for, just offering a huge amount of money for an unspecified art work.

Be careful out there.

For more information on NFTs click here for the wikipedia article.