Thread by @ContextNewsroom

📈 The #NFT market has exploded over the past year.

💰 Sales soared past $24.9 billion in 2021, according to market tracker @DappRadar.

⚠️ But more artists are sounding the alarm over thieves stealing their digital work.

⭕️ How big is the industry's fraud problem? 🧵

1️⃣ What are NFTs?

🖥 NFTs represent a digital item like an image or video.

⚡️ They're usually bought with #crypto and transactions are recorded on a blockchain.

📱 On some marketplaces, anyone can create and sell NFTs, without showing proof of ownership of the original image.

2️⃣ Who is embracing them?

✨ More celebrities are joining the craze like rapper @SnoopDogg who unveiled his first collection in 2021.

🦧 TV host @JimmyFallon bought @BoredApeYC NFTs while actress @ReeseW voiced her support for more women in NFT spaces.

3️⃣ What are the pros of making NFTs?

🎨 Artists create them to have more control over their work and find new audiences.

💰 Sales are proving quite lucrative for some.

⭕️ The tokens can be coded so that the original artist receives a royalty each time the NFT changes hands.

4️⃣ What are the cons?

🚨 Some say the industry is too saturated by scammers and can reward low-quality viral art.

🗣 "Anyone can take someone else's image and upload it as an NFT, hoping it'll sell," said artist @Arvalis.

5️⃣ How do NFT markets deal with fraud?

👁 One advantage of the NFT world is that blockchains storing tokens can be easily scanned and inspected.

🚨 This makes it easier to catch art thieves, said Canadian photographer @AaronRFerguson.

6️⃣ Can artists report fakes?

📝 Copyright owners can submit requests to marketplaces for takedowns - but this process can be complicated.

🖌 While artists can contact whoever posted their work for sale with concerns, it’s notoriously hard to link accounts to a real person.

7️⃣ What’s the impact of NFT fraud?

⭕️ Artist Dan Howard passed away in 2019 - but last year, an anonymous account started selling his work as NFTs.

🚨 When a fan alerted his family, they emailed @OpenSea, which removed the auction. But within weeks, more were up for sale.

8️⃣ Are NFTs all to blame?

🖼 Some say issues like fraud and the spread of low-quality pieces have always existed in the art world.

🗣 "You can't scapegoat NFTs," @AaronRFerguson said.

⭕️ He much prefers the NFT scene to posting images for free on Facebook or Instagram.

🚨 How should we tackle fraud in the NFT art world?

⭕️ As the #NFT market continues to boom, artists worry about a digital world flooded with fakes.

@AASchapiro reports. 👇

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