The non-fungible token (NFT) market has experienced rapid growth, reaching a sales volume of $50 billion for the first time in 2022. Unfortunately, this growth has also attracted fraudsters, with over half of the NFT activity on the Ethereum blockchain reported as fraudulent in 2022. To combat forgery and inflation in the NFT market, advanced market intelligence and analytics are required.
AI-powered tools are now available to help users avoid fake NFTs and estimate the real value of tokens. NFT analytics provider bitsCrunch has developed an AI-powered tool that scans major blockchains and marketplaces for potential copycat or forged NFTs. This tool has already identified hundreds of counterfeit NFTs in popular collections like Bored Ape Yacht Club (BAYC).
Counterfeit NFTs pose economic, legal, and reputational risks to the market. Investors who lose confidence due to fake NFTs are less likely to return, which could result in a drop in NFT prices. However, AI-powered analytics can help restore confidence in the ecosystem by providing accurate data and insights.
In addition to detecting fake NFTs, AI can also aid in price estimation. The NFT Price Estimation tool by bitsCrunch uses historical information, metadata, and social media hype to provide more accurate price estimates. This enables users to make better decisions when buying or selling NFTs.
To further support the NFT ecosystem, bitsCrunch has launched its startup program, allowing companies working with NFTs to access their tools for analyzing and managing risk via API. By leveraging AI-powered analytics, NFT creators, traders, and businesses can detect and avoid malicious activities, promoting a healthier and more transparent market.
Juliette Twain: Jun 19, 2023 11:48:10 AM
