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NFT

How To Spot A Fake NFT?

Plagiarism and forgery are becoming more common as NFT adoption grows, and many traditional and digital artists profit from their creativity. With the NFT space rapidly expanding and a single art piece selling for thousands of dollars, it's impossible not to see con artists preying on newcomers' ...

Oluyinka Odewole

Jan 20, 2023 • 4 min read
How To Spot A Fake NFT?

Non-fungible Tokens (NFTs) have grown in popularity recently, offering a new investment option in the cryptocurrency market. Every day, dozens of new NFT projects are announced, each promising juicy benefits to potential investors. However, NFTs are still thought to be in their infancy, leaving newcomers vulnerable to the complexities of creating and minting NFTs.

Plagiarism and forgery are becoming more common as NFT adoption grows, and many traditional and digital artists profit from their creativity. With the NFT space rapidly expanding and a single art piece selling for thousands of dollars, it's impossible not to see con artists preying on newcomers' innocence by displaying and selling fake NFTs.

Unfortunately, bad actors can be found in any industry, whether private or public, and the crypto space is no exception. Fake NFTs arose alongside the growth of the non-fungible token industry. And it is a huge problem for both creators and buyers. As a result, if you don't understand the NFT market or how to differentiate and avoid fakes, you're more likely to become a victim of fake NFT.

So, how do you avoid becoming a victim of a counterfeit NFT? How do you protect your hard-earned money by purchasing genuine NFTs? How do you identify Fake NFTs? Not to worry, you will learn how to spot a fake NFT and protect your investment from con artists in this guide.

How To Spot Fake NFT

Check and Confirm The Artist or Seller's Identity

How To Spot A Fake NFT?

Before interacting with the NFT asset, conduct a background check on the artist to see if they have a digital footprint. This can be accomplished by verifying their identity through their website, social media platforms, and other available links. Also, ensure you're looking into their official accounts, not ones set up by the con artist.

However, it's usually a bad sign if you can't find a legitimate source of information or if the information on their website and social media platforms differ. So, ensure you double-check the artist's identity before making a purchase.

On the other hand, if you're buying the NFT on the secondary market, you can trace its origins by checking the seller's wallet address and the NFT's on-chain ID. However, proceed with caution if the marketplace does not allow you to see the seller's wallet address.

Take Time To Review The NFT Website

It is easy for a fraudster to replicate the details of an entire website, as they would go to any length to look authentic. As a result, even if the website appears similar to the original, you may be using the incorrect link to access it. However, if you carefully examine the page, you will notice that the replica website has various missing details, black spaces, low-quality text, and other errors.

Take your time reviewing the NFT website before committing your money. Furthermore, avoid connecting your crypto wallet to any NFT website before verifying its legitimacy because once connected, you've given up access to your funds.

Verify The Collection Sale's Volume

If the NFT you're considering purchasing is from a specific collection series, there's a good chance it's been traded before. As a result, you can verify the collection's trading volume by checking the NFT marketplace aggregator or the blockchain explorer. However, be wary if the NFT has no previous trade record on the explorer, and conduct additional research before committing.

Even if there is sufficient trade for the NFT, double-check the activity history and verify if the transaction is not within the same number of wallets, as the fraudster may be carrying out the transactions to manipulate the sales volume and price.

Verify The Contract Address

How To Spot A Fake NFT?

The contract address is typically listed in the detail section of the NFT asset on NFT marketplaces. So, in addition to the seller's wallet and the NFT on-chain ID, the contact address is important information to verify. However, if the NFT's contract address differs from the one shared by the project owner, the NFT is not authentic.

Check Authenticity With A Reverse Google Search

Another method for confirming the authenticity of a collection is to perform a reverse search for the NFT's image and see where else it appears. A reverse google search using the NFT will confirm the artwork's authenticity, as similar images will appear in the search results.

As a result, if the search result comes from another website, the NFT isn't genuine. Unfortunately, the reverse search only applies to NFT artworks and cannot be used to verify the authenticity of other categories.

Examine The Cost Of The NFT

The general rule is that if something appears to be too good to be true, it most likely is. As a result, you can compare it to the asking prices of other NFTs in the category. NFT prices are determined by supply and demand. If an NFT is significantly cheaper or more expensive than similar NFTs in the same category, it is likely to be a counterfeit.

The Takeaway

Although this guide has highlighted the approach required to spot fake NFTs, it cannot guarantee that you will not fall victim, because it is up to you to take the necessary precautions. However, choosing the best marketplace is one of the best ways to avoid Fake NFT.

Reputable NFT websites employ various security measures that make purchasing art more secure. In most cases, the marketplace validates each collection and artist, and a blue checkmark appears next to verified collection profiles.


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