Fake NFT
According to Forbes, in 2021, the non-fungible token (NFT) market surpassed a $40 billion valuation. With the incredible blooming of NFT over the year, the NFT Fraudulences have chance to grow fast with various forms and sophisticated tricks. Plagiarism and fraud have been an issue since NFTs exploded in early 2021, in fact, blockchain crime via transactions hit $7.8 billion in 2021.
There is always a new opportunity to scam, and fraudsters are always ready to figure out how—especially when it involves a monetary transaction. And the users who are lacking information, and experience in evaluating the NFT assets can become the victim of these NFT thieves.
When there is no barrier for any people to easily download NFT from the platform, scammers can remint them on the same or another platform to sell the fake NFTs at lower price. OpenSea - the largest NFT marketplace, allows the creation of NFTs using “lazy minting,” where users list NFTs for sale without writing them to the blockchain. Sellers don’t pay fees until an NFT sells, allowing scammers to list as many stolen items as they want in the hopes of nabbing a sucker.
While some Marketplaces use a Human-moderated-verification system, by giving the creators and their collections a blue tick acting as verified badge, it still can't solve the problems from the root. Because the point is that the collectors are lacking information and bewildered when I first entered the crypto market, which fluctuates so quickly and complicatedly.
As an end-user, it's necessary to always do your due diligence before buying NFTs, research the marketplace and the seller, and look up the art. And what they need is a creditable information resource to check and have a well-educated investment decision for NFT.
Wash Trading
Have you wondered why an NFT can be traded at such a high price on the market and has great liquidity? Does it have real value or is the price being manipulated to draw attention?
Another problem that NFT investors have to face is Wash traded NFTs, which are even harder to find out with naked eyes. Wash trading, meaning executing a transaction in which the seller is on both sides of the trade in order to paint a misleading picture of an asset’s value and liquidity, is another area of concern for NFTs. In the case of NFT wash trading, the goal would be to make one’s NFT appear more valuable than it really is by “selling it” to a new wallet the original owner also controls. In theory, this would be relatively easy with NFTs, as many NFT trading platforms allow users to trade by simply connecting their wallets to the platform, with no need to identify themselves.
More generally, wash trading in NFTs can create an unfair marketplace for those who purchase artificially inflated tokens, and its existence can undermine trust in the NFT ecosystem, inhibiting future growth.
aiRight solutions - The AI-based NFT Audit
NFT Audit is originally a service implemented for aiRight to evaluate the credit score of any media assets (image, audio/music, and video) before being minted on aiRight. The assets need to go through the verification steps, in which a report is generated by AI Oracle from Oraichain and attached to NFT when the users agree to mint. Everyone can view this report when visiting the NFT details.
The demand in the wider market besides aiRight for this feature has motivated us to publish this service for the benefit of the community. Now individuals can use our NFT Audit to assess an NFT regarding its authenticity and other related metrics before making a purchase. Other marketplaces or projects can integrate our NFT Audit service to enhance the trust in their platforms.
The use of the NFT Audit service is straightforward: a user inputs one NFT and receives a report for the NFT after a processing time depending on the type of NFT (est. 10s ~ 10mins). Several aspects are included in the NFT Audit report.
On-chain authenticity level
This aspect refers to the authenticity of the NFT within aiRight Marketplace and within other on-chain assets across marketplaces such as OpenSea, Rarible, etc. Any modified copies of on-chain assets are supposed to be detected at this level.
Off-chain authenticity level
This aspect refers to the authenticity of the NFT compared to other off-chain works including image, music, audio, and video media. Any copyright infringement is supposed to be detected at this level.
Report on NFT transaction history
The report provides a transaction history list and a knowledge graph focused on the NFT, highlighting any abnormal behaviours if found based on our AI strategies.
The report includes a predicted “fair market value” and other metrics related to sale volume, minting activity, social sentiment, and community growth. All these indicators are made based on our AI strategies.
For the development of the NFT Audit report, several AI strategies are being developed by our aiRight team.
