The biggest NFT influencers have made mistakes, too. However, most of them don’t make them public. It’s important to know whether you’re investing in a project that’s legitimate before you buy. While Bored Apes, HAPEBEAST, Invisible Friends, and Pixelmon have garnered massive amounts of attention during their tease launches, there are a few examples of NFT projects that haven’t made it.
Tokenising non-fungible items is a growing trend, but they’re not really the best way to protect artists and creators. NFTs don’t guarantee that the money goes to the creator, and they don’t provide a worthwhile right. For example, tokenising a Tweet from someone’s Twitter account doesn’t provide any financial benefit to the creator, even if it’s an original work.
Another problem with NFTs is their impact on the environment. While they seem harmless, their carbon footprint is enormous. Mining a blockchain requires computing power equal to almost as much energy as the entire country of Argentina. Therefore, investing in NFTs is a bad idea. Even if you buy one NFT and forget about the broader implications, it’s still a bad idea.
NFT scams can be extremely sophisticated. Some of them can net you $4 million in a single day. While it is possible to invest in a scam that is simple and easy to understand, there’s a way to protect yourself and make a profit.