NFTs are pioneering a new era of digital ownership and investment. With a record number of new NFT collections launching in 2022, the NFT Market is set to reach $50 billion in sales volume for the first time. However, as a rapidly growing market that operates entirely in the digital world, it didn’t take long for the NFT industry to become a haven for fraudsters.

A recent report revealed that by 2022, more than half of NFT activity on the Ethereum blockchain will be fraudulent. From wash trading to copycats, the NFT market enters 2023 with a series of problems that can only be solved with intelligence and analytics.

Impact of fake NFTs

Fake NFTs created by copying the original image may be difficult to detect resulting in significant financial losses for buyers. The impact of fake tokens on the NFT market includes economic, legal, and reputational. Investors who lose faith in the ecosystem due to fake NFTs are less likely to return to the market. Without significant demand, the price of NFTs will inevitably drop.’

Without the right tools, NFT collectors are easily confused when trying to find genuine NFTs in the market and trace their history. Fortunately, recent technological developments in artificial intelligence (AI) now make it possible to prevent NFT buyers from investing in fake content. NFT analytics bitsCrunch recently launched an AI that checks blockchains and markets for potential copycat or fake NFTs.

Fake NFTs can be detected by AI

By analyzing over 800,000 assets on OpenSea against the top 40 NFT collections on the Ethereum blockchain, bitsCrunch found that 144 copycat NFTs matched BAYC. Additionally, 231 NFTs were characterized as near-exact matches, while “very similar” copies totaled 814.

Koleksi NFT lainnya termasuk Azuki, Otherdeed, dan CloneX, memiliki puluhan salinan persis yang terdeteksi oleh analitik AI. bitsCrunch mendeteksi materi palsu di seluruh jaringan blockchain dan menandai NFT palsu yang baru dicetak dan yang sudah ada dengan menganalisis data real time.