The State of NFTs in 2022

Last year, we discussed what NFTs are, as well as some common NFT scams and safety tips. We’re now checking in again to give you an update on what’s currently going on in the world of NFTs. But first…

What is an NFT?

NFT stands for non-fungible token. No, they have nothing to do with fungi. When something is described as ‘non-fungible’, it means that it is one of a kind and cannot be copied.

NFTs are digital items that represent worldly objects such as music records, artworks, videos, etc. They are commonly sold online for cryptocurrency and seen by many as collectible items. Because NFTs are assets on a blockchain and all have unique identification codes, proving ownership is no issue.

Bored Ape Yacht Club, CryptoPunks, and VeeFriends are currently three of the most popular NFT collections.

The Status of NFTs in 2022

If you compare the NFT market from 2021 to 2022, you will notice that the hype has dwindled. It seems that since last year, when the buzz around NFTs peaked, people have been steadily losing interest in them.

Many different factors contributed to the decrease in interest in NFTs, but below are some of them:

• Unregularized market practices — There’s no standard method of how to sell NFTs, which creates opportunities for scams.
• Crypto price plunges — The values of cryptocurrencies dipped in 2022, which affected the value of NFTs.
• Unstable investment probability — Due to their decline in value, people are more hesitant to invest in NFTs.

Top 3 NFT Scams 2022

Scams are a constant concern in the world of NFTs. Here is a list of the most common NFT scams:

• Fake NFT websites — There are many fake NFT websites pretending to be legitimate sites.
• Fake offers — Impersonating well-known NFT trading platforms, scammers may send you emails claiming that someone has made an offer for your NFT. The emails prompt you to click on a button:

The button leads to a phishing website that will ask you to link your wallet and submit your seed phrase/recovery phrase. Scammers can record the credentials and hack into your wallet and steal everything you’ve got!

• Fake technical support — In these scams, scammers will send you emails or messages via Discord saying that there is some sort of technical issue with your wallet or account.

Once again, they’re after any credentials they can use to access your account and steal your NFTs or crypto.

We’ve also seen many fake NFTs and NFT giveaway scams, so please be careful.

How to Stay Safe from NFT Scams

Trend Micro Check — our 100% FREE browser extension and mobile app — can protect you against scams, malicious websites, risky emails, and lots more! If you come across something dangerous online — like a fake NFT website or phishing email — you’ll be alerted in real-time so you’ll know to stay well clear.

As ever, if you’ve found this article an interesting and/or helpful read, please do SHARE it with friends and family to help keep the online community secure and protected. Also, please consider clicking the LIKE button below.

This article was written in collaboration with Trend Micro