CRYPTO, NFT — A new era of digital ownership and investment was heralded by the introduction of nonfungible tokens (NFTs). In 2022, a historic amount of new NFT collections were released, and for the first time ever, the NFT market’s sales volume exceeded $50 billion. However, due to its nature as a rapidly expanding digital market, con artists quickly found their way into the NFT sector.
More than half of all NFT deals on Ethereum’s blockchain in 2022 were fraudulent, making it the most widely used network for NFT transactions, according to a recent analysis. In 2023, the NFT market had a number of serious problems, such as wash trading and imitation collections, which could only be addressed with cutting-edge market data analytics. Pricing a collection is difficult since there is often a huge disparity between the floor price and the price ceiling.
While NFTs from widely-known collections like the Bored Ape Yacht Club (BAYC) fetch high prices on the secondary market, it’s not hard to forge NFTs using stolen images of apes from those collections. The BAYC collection’s $1.53 billion in 2022 sales represents a potentially profitable market for counterfeit NFTs. In addition, malicious market behaviour further complicates NFT users’ ability to make educated investment or trade decisions.
The repercussions of fake NFTs
The internet environment makes it difficult to spot fake NFTs made by replicating the picture of authentic art, which can lead to considerable financial losses for customers. False tokens in the NFT market have a financial, legal, and reputational impact. If investors stop trusting the ecosystem because of false NFTs, they are less likely to start investing again. NFT prices will fall if there isn’t enough demand for them to stay stable.
Without the right resources, NFT collectors might easily become perplexed when trying to identify a genuine NFT on the market and learn its provenance. Fortunately, artificial intelligence (AI) advancements in recent years have made it possible to shield NFT consumers from being duped by scams. bitsCrunch, a provider of NFT analytics, has released a new AI-powered tool that scans key blockchains and marketplaces for potentially copycat or faked NFTs.
The ultimate price of a digital collectible is determined by a number of criteria, including its trading volume and history, its last traded price, and the profile of prior buyers. But now, with bitsCrunch’s NFT Price Estimation tool, artificial intelligence can help both buyers and sellers. The Price Estimation tool employs a combination of studied historical data and metadata to predict future prices. This allows for a more accurate assessment of the true value of a stock or other investment.
The machine learning tool is powered by artificial intelligence, and it has analyzed data on more than 30 million NFTs from more than 2,200 collections to apply cutting-edge data and analytics to the user’s purchase and sale decisions. Pricing Non-Ferrous Metals with the Help of AI When trying to sell an NFT, users sometimes struggle to determine a reasonable price because the floor price, or the lowest-priced item in a collection, does not provide a valid perspective.
Tools that combat market abuses like wash trading and forgeries in the NFT arena are essential to realizing the industry’s full potential. To reap the benefits of market data, users require AI-powered sophisticated analytics and insight provided on simple-to-understand screens. bitsCrunch’s UnleashNFTs provides accurate NFT analytics and forensics, allowing users to gain trustworthy market information. Buyers and sellers can benefit from the platform’s in-depth analysis, research, and data on the NFT ecosystem, allowing them to make more informed decisions with every NFT transaction.
Moreover, bitsCrunch has released its startup program as part of its effort to increase NFT ecosystem knowledge and data transparency. Participating businesses will get easy API access to bitsCrunch’s risk analysis and management resources for NFTs. The NFT ecosystem can grow in a more positive direction if creators, traders, and corporations are armed with AI-powered analytics to help them spot and avoid harmful activities during transactions.
