Are NFTs a Scam?

The answer is yes, a lot of NFT projects are a complete scam. This fact has made the NFT market a very controversial topic over the past few months. The booming market has provided an opportunity for many incompetent entrepreneurs to dump their poor products onto unsuspecting buyers.

But don’t lose hope. The technology around NFTs is very solid and the current economic market fully supports their application. Your job as an investor is to find the right projects and identifying the scams.

The number one thing to look at when buying an NFT is the use case, does it provide extrinsic or intrinsic value to the marketplace. Will this token grow in value as the project advances?

After that, here are a few questions you should ask yourself about the team behind the project. Are they capable of getting the project to fruition and achieving the goals that they have promised? Are they hiding behind an alias and not releasing their names to the public? Have they completed successful projects in the past?

The next step is to look at the community, this will tell you if the market likes and is excited about the project. How many social media followers do they have? Do they have an active telegram or discord group and are people genuinely excited about the project?

All and all don’t expect to see this market disappear, but also don’t expect to be selling your galaxy chicken JPEG for profit in ten years.

Let us know in the discord chat if you have questions, comments or if this blog helped grow your knowledge of the space.