I’ll be answering why there are free nfts on opensea.
why are there free nfts on opensea
Opensea developed a minting process that lets creators make these nfts for “free.” However, there is a downside to this method. Matter of fact, it’s been reported by the company that over 80% of these NFTs were made fraudulent. To combat this issue, they placed a 50 item limit on NFTs created on their platform.
The minting process in relation to a NFT is the act of storing a digital asset on the blockchain.
This process is also commonly associated with crypto, cryptocurrency and things alike are synonymous with NFT’s, blockchains and other digital assets.
An NFT for the newbies that just found out what it is off this site is otherwise known as a non-fungible token.
NFTs can take the form of a picture, song, signature or anything you can think of really.
It’s thought of to be similar to currency that’s exchanged (U.S. dollar for example), but the difference is that it’s the only of its kind.
When you’re minting, you’re just trademarking your digital stamp on the internet.
There’s a downside
They’re been stories time in and time out where you’ve heard the term “if it’s too good to be true, then it probably is.”
Whenever you hear something’s free, you might wanna give it a second look.
Most things come with an attachment.
But let’s look at it through another lens.
NFT’s can be risky to give attention to, just because it’s lack of historical data to back up its value.
So through an investment standpoint, it’s hard to have confidence in doing it without having someone who invests that’s already profitable.
Most deal with fraud
One issue that’s common with these “free NFTS” is through scammers promoting fake projects.
The actual scam is in promising investors that you’ll make money investing in their project.
Now making an investment with a reasonable expectation’s one thing, but asking for an investment with promise of return is trouble.
A report from the Manhattan DA’s office shared that phishing sites will steal the info from sites promoting NFT’s.
So owners have been going through a long process of trying to earn their rights back fully.
Again, the difficulty comes in trying to establish ownership on a unprecedented token.
50 item limit
Opensea’s created a limit to fight this spike in fraud.
They made it where you’re only allowed 50 mints with their platform.
Opensea’s known as the world’s largest NFT market.
And with that type of fame, you’re bound to get attempts to have your products stolen.
The best combat to that is regulation.
Increased regulation at that.
The real monkey wrench is how new this phenomena is.
When you get the understanding of having 50 NFTs, you’ll also learn about collections that you’re given (5 with this platform).
For more tech related posts, click here.
To read more on NFT’s and making better investments in the new market, check out the NFT Handbook.
Thanks for your views and likes, but let’s do a better job with taking action and grabbing the books recommended.
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