High Fees, Copyright & Other Scams: The Ugly Side Of NFTs

published – Feb 28th 2022

There is no denying that certain people have done very well financially from NFT art. Some creators have even become millionaires just from their work (see Bored Apes Yacht Club and Crypto Punks). However, there are several problems under the surface that you may not be aware of throwing the whole concept of the non-fungible token into some serious doubt.

hacker High Fees, Copyright & Other Scams: The Ugly Side Of NFTs art artwork disadvantages issues flaws problems NFT earn work jobs make money online from home — photo by B_A from pixabay

NFT Platforms

Certain platforms and NFT marketplaces are very accessible and will let anyone sign up for an account whereas others will have a much stricter application process with a joining fee. I would recommend you avoid platforms that ask you for money just to register with them.

Fees across the different NFT platforms can fluctuate rather wildly so shop around, do your homework and choose wisely. On top of this, certain platforms are more popular and bring and more traffic which can clearly help your sales.

Fees

Fees come into play during each stage of the NFT transaction and you need to take into consideration the sometimes extreme fees that accompany NFTs as well. In addition, these added charges can really eat into any potential returns you might hope to make. This can include fees for:

minting
listing
buying
selling

Of course, the downside of the gas fee is that you will have to sell your NFT for a tidy sum in order to overcome this and actually break even or profit (if you’re lucky). It can often be hard to argue if an NFT is a good investment.

Furthermore, fees can increase during peak times so think about the time of day that you choose to do anything with your NFTs. You can save yourself a lot of money if you pick unusual times when the rates are low.

Environmental Impact & Carbon Footprint

NFTs can harm the environment too when you consider the amount of computing energy and resources used to create something that can only exist digitally. The footprint that NFTs leave behind is hard to justify and all this contributes to mounting carbon emissions around the world.

Copyright

In order to sell a file as an NFT, you have to ensure that it is in fact original and also indeed your own intellectual property. There will likely be copyright issues if you choose to break this rule which might lead to legal trouble.

More often than not, you don’t actually gain the intellectual property or copyright rights to the piece after purchasing NFTs for sale. Those privileges typically stay with the original creator.

Security Issues

What are the pros and cons of NFTs? NFTs have previously been criticized due to scams and fraudulent activity so you will need to exercise some caution here. There are also security concerns when it comes to the wallets and platforms on which NFTs are traded.

Some people are prone to hacks and viruses whereas others have had problems accessing their accounts which can lead to financial troubles.

Is this all unethical? The world of NFTs is rumored to be used for tax evasion and money laundering by some unscrupulous individuals. This is a shame as it ruins the experience for artists and customers who are genuinely there for the right reasons.

brushes High Fees, Copyright & Other Scams: The Ugly Side Of NFTs art artwork disadvantages flaws issues problems NFT earn work jobs make money online from home — photo by jan_photo from pixabay

It should now be clear that the world of NFTs isn’t as rosy as some people might have you believe and that can be an especially hard lesson for beginners. There are several obstacles that can trip up and it’s far from the get rich quick scheme that some perceive it as through the media lens.

Some view NFTs as nothing more than a short-term fad for the super-rich and people who buy NFTs are often seen as foolish in the eyes of some. People have begun to wonder when the bubble will burst.

I’m not the only one who is aware of the more sketchy aspects of NFTS. Sites like fstoppers and thenftbrief also point out and elaborate on major issues with this kind of digital artwork.

After demonstrating some of the flaws of NFTs, I can see why they might not be for everyone. Although, if you are interested in making money from this venture then I suggest you do some more research before you dive into the deep end.

I recommend reading books on the subject as well as reading further NFT articles like this one. Another thing that you can do that might help your NFT business is to learn How To Promote Your NFTs To Get Noticed & Increase Profits.

Do you believe that NFTs are a worthwhile money-making opportunity? What do you think is the biggest problem that NFTs face? Please don’t forget to share this with your friends and like it on social media. You can subscribe to our newsletter and comment below too. Thanks for reading!

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