Be Aware Of NFT Scams – Tips From KuCoin
Non-Fungible Tokens are available on NFT marketplaces and launch platforms such as Wonderland by KuCoin. It is an interactive NFT platform for crypto-assets and traditional games. It offers users an enjoyable trade experience and investing in their in-game NFTs. However, people are wondering, are they scams or gateways to becoming crazy rich? Well, they could be both, as the scamming game lately has improved a lot, and people are more prone to getting rugged than getting their hands on real projects if not given proper guidance.
NFT
NFTs are digital documents that cannot be copied. Even if someone claims they can right-click and save it to ‘own’ it, they do not technically own the original piece because it is only licensed to the rightful owner who either earns that digital asset or buys it. The owner’s name is attached to the authentic minted piece to claim ownership of the document rightfully.
The value of an NFT depends on the demand for it. As long as the demand for anything is intact, the product stays valuable. However, as soon as the general public starts thinking that animated apes and pixelated avatars are not cool, their value will decrease. So users must invest in projects with real-life value and some ‘utility’ behind them.
Utility
Yes, some NFTs offer real-life value like in-game NFTs, which are available on Wonderland by KuCoin. These NFTs can be used to buy in-game items or trade them for in-game currency. This cryptocurrency can ultimately improve the user’s crypto portfolio, and this currency is worth real money and could be worth more as more people join it. Projects not offering such utilities are more likely to rug customers. Some assets are gateways to valuable communities that offer real-life services like giveaways and educational environments to learn more about the crypto world.
Ideology / Cause
NFTs with no ideology or real cause behind them are most likely to be scams too. If not scams, they are more prone to getting devalued in a short time, so one should always opt for projects that either support a certain cause or has an ideology behind it so that the user’s investment means something and not a mindless purchase of a temporary art piece with no actual value behind it.
Verified Creators On Trustworthy Platforms
Always go for verified creators on the marketplace as they get their verification badge after getting scrutinized on extreme levels. Users should do their trade under a well-trusted platform, so the hassle of authenticating every trader gets massively minimized. Trustworthy tokens like KCC and Polygon support such platforms. KCC is a decentralized public chain built by the fans of KCS and KuCoin. There are other platforms too which are supported by SHIB, which is a token designed to be an Ethereum-compatible alternative to Dogecoin DOGE.
Team Anonymous
Mostly the teams of professional rug-pullers are anonymous so that they remain above the moral policing of the general consumer. This is generally a huge red flag that can be fatal if ignored.
Customers should always do their research and consult professionals before getting into any NFT project. We at KuCoin have established an academy for the public to get educated on topics like these and others.
