NFTs: Seven Controversies Involving the Use and Purchase of Digital Tokens | Bitcoin and Virtual Currencies

As a certificate, NFT can make any digital project unique in the world. These non-fungible tokens are established through the blockchain, which guarantees their exclusivity and authenticity. While it’s been around since 2014, the technology became a talking point after several users spent millions on the internet buying such assets last year.

  • 10 digital images sold as NFTs for ridiculous prices

However, it is not just the very high amounts paid by NFTs that are causing controversy. The technique has been used in scams and has already caused millionaire losses after tokens were sold at the wrong price. Plus, there are people who have become the joke on the internet for buying digital sneakers. Below, learn about the top seven controversies surrounding the use and purchase of NFTs.

Suppose artist sells fake NFT work and disappears with investor money; see other controversies involving technology — Photo: Reproduction/Twitter @IconicsSol

CryptoBlades: How to play NFT games? See tips on the TechTudo forum.

1. Influencer buys sneakers on NFT, becoming an internet joke

In November 2021, Internet celebrity Gui Oliveira appeared in “Brazil’s first digital sneaker”, which attracted the attention of the Internet. In photos posted on his social network, tiktoker wears flaming sneakers, as if releasing flames. The piece was made in an NFT by digital fashion marketplace DeFash and digitally inserted into the image. In addition to assembly, Gui also obtains proof of purchase on the blockchain, which guarantees the exclusivity of the NFT.

The case only reverberated in January of this year and became a meme for netizens criticizing the purchase of digital goods. In the comments, someone said they could do the same montage in apps like Canva and Picsart. Facing the backlash, Gui Oliveira explained that he is a sneaker collector who likes the company’s move to produce digital clothing.

DeFash’s flame sneakers were not available on the brand’s website until early January. At the moment, prices can no longer be seen as the product is sold out, but the company produces products starting at 77 reais.

2. Scammers sell fake Banky NFTs for R$1.7 million

Another controversial case involving NFTs was the purchase of a fake by British artist Banksy in August 2021 for £244,000 (approximately R$1.7 million). The victim of the scam was a 30-year-old Briton with a collection of art. The man said he entered the auction through Banksy’s official website, but he believes the page has been hacked by scammers. The artist’s team told the BBC website that he had never registered any NFTs.

Banksy’s alleged NFTs sold for around R$1.7 million — Photo: Photo: Reproduction/Pranksy/Opensea

The case even took a turn when the scammers accidentally returned money paid in fake NFTs. Collectors believe the response to the scam may have spooked the criminals, who only failed to refund the £5,000 transaction fee.

3. NFT collections represent black slaves

Another controversy in the non-fungible token space came in February this year when the Meta Slave project was accused of racism. The name of the series, which can be translated as “Meta Escravos”, only features black people. In total, the bill includes 1,865 NFTs, referencing the year the US abolished slavery. The first photo is of George Floyd, a black man who was the victim of racism and brutally killed by a police officer in the US in 2020.

Meta Slave is a group of photos in NFTs that has sparked controversy for representing black slaves — Photo: Reproduction / Twitter @MetaSlaveNFT

The response was completely negative, as the collection of NFTs tried to profit from the image of black people and a title that mentioned the word “slave.” Following the comments, the company tried to defend itself, saying it was trying to represent “we are all slaves to something” and that other series, such as White and Asian, will be launched in the future. However, the project did not close and was only renamed Meta Human (“Meta Humans” in Portuguese).

4. NFTs sold at the wrong price cost millions of dollars

Imagine selling a 1.7 million reais NFT for 17,000 reais. That’s what happened in December 2021, following a typo in the Bored Ape Yacht Club collection’s digital artwork listing. The monkey cartoon owner intended to list the piece as 75 ETH (the cryptocurrency used for NFT transactions), but ended up entering 0.75 ETH.

Bored Ape Item No. 3,547 sold for well below its value after a typo — Photo: Reproduction/OpenSea

Although the error was noticed immediately, the purchase had been made by the bot. The automatic account paid a hefty fee to secure an immediate purchase, which was later sold again for nearly $250,000.

5. Young proposed the NFT project, which disappeared as users invested funds

In September 2021, an alleged 17-year-old digital artist presented an NFT project called “Iconics.” According to the author, the goal is to provide high-quality artwork, and the collection will have 8,000 pieces. He even showed some on his Discord channel and pre-ordered 2,000 NFTs to sell at 0.5 solanas, another cryptocurrency used in these negotiations.

One of the NFT pieces allegedly sold by the “Iconics” project — Photo: Reproduction/Twitter @IconicsSol

Instead of the artwork, however, all buyers received a random collection of emojis. The scammer is believed to have raised the equivalent of $138,000 by selling counterfeit works. After the episode ended, the young man deleted his social networks and disappeared with the invested money.

6. Ozzy Osbourne’s NFTs fueled a scam to steal the singer’s fans

In December 2021, singer Ozzy Osbourne announced a series of NFTs inspired by the episode where he bit a live bat on stage. The CryptoBatz project has 9,666 bats and was launched in January of this year. So far so good, but the link used to direct customers to the Discord platform, which is widely used for the digital distribution of NFTs, is having issues.

Ozzy Osbourne’s collection of NFTs is reminiscent of a 1982 episode involving bats — Photo: Reproduction/CryptoBatz

Initially, the CryptoBatz team posted a discord link on their social media, but later changed the URL. The criminals then used the first address to create a fake server on the platform. To gain access to the community, users must verify their crypto assets, so criminals can gain access to victims’ wallet data.According to the website edgethe scam may have taken about 1,300 victims, some with all the money in their wallets.

7. Music NFT platform sells copyright-free content

Another controversy related to the use of non-fungible tokens occurred in February this year, when website HitPiece sold NFTs of songs without authorization. The platform sells music from video games, Disney and famous singers like Britney Spears and BTS. However, it was the subject of complaints from artists on social media.

The HitPiece website sells music NFTs without authorization — Photo: Playback/HitPiece

According to the author, the site has no rights to these works and no license to sell them. The platform defends itself by saying that it pays artists whenever a product sells. However, following the controversy, the business appears to have taken a break. HitPiece now only displays the message “We have a conversation and are listening”.

See also: Five Important Tips Before Buying a Laptop

Five Important Tips Before Buying a Laptop

Leave a Comment

Your email address will not be published.