NFT: Seven controversies over the use and purchase of digital tokens Bitcoin and virtual currencies

NFT works as a kind of certificate that makes any digital element unique in the world. These non-fungible tokens are implemented via blockchain, which ensures exclusivity and authenticity. Although it has been around since 2014, technology has become a technology issue in the last year, with millions of users spending millions to buy an asset of this type on the Internet.

  • 10 digital images were sold as NFT for absurd prices

But it’s not just the very high amounts paid in NFTs that are causing controversy. The technology has been misused and has already caused millions in losses after a token was sold at the wrong price. In addition, there are those who have become addicted to digital sneakers. Below are seven controversies surrounding the use and purchase of NFTs.

The alleged artist sells fake NFT pieces and disappears with investor money; see other technology discussions – Photo: Reproduction / Twitter @IconicsSol

CryptoBlades: How to play NFT game? See tips in the TechTudo Forum.

1. The influencer buys shoes in the NFT and it becomes a joke on the internet

In November 2021, activist Gui Oliveira attracted attention when she appeared on the Internet wearing “Brazil’s first digital shoe”. In a photo posted on his social media, the tiktoker wears a flaming shoe, with the effect as if it would release the flames. The piece was produced on NFT by DeFash, a digital fashion market, and was digitally embedded in the image. In addition to assembly, Guik also received a blockchain purchase certificate, guaranteeing the exclusivity of NFT.

The case resonated in January this year and became a meme among network members, who were criticized for buying a digital item. Comments include applications such as Canva and Picsart that can do the same assembly. Gui Oliveira explains that he is a sneaker collector and liked the company’s initiative to produce digital clothing.

DeFash’s flaming sneaker was available on the brand’s website until early January. Now that the product is sold out, the price can no longer be seen, but the parts produced by the company start at R $ 77.

2. The scammer sells a fake Banky NFT for BRL 1.7 million

Another situation in the NFT that caused controversy was the purchase of a fake piece by British artist Banksy for £ 244 thousand, about R $ 1.7 million, in August 2021. The victim of the scam was a 30-year-old Englishman. art. The man said he reached the auction via Banksy’s official website, but believes the page was hacked by scammers. The artist’s team told the BBC’s website that he had never registered an NFT.

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

The case also took a turn for the worse because the scammer accidentally returned the money paid in the fake NFT. The collector believes the echo of the scam could frighten the criminal, who has only returned a £ 5,000 transaction fee.

3. The NFT collection represents black slaves

There was another controversy in the world of non-fungal tokens in February this year, with the Meta Slave project accused of racism. Only black images appeared in the collection, which can be traced back to “Meta Escravos”. In total, the bill included NFT 1,865, referring to the year of the abolition of slavery in the United States. The first image was a photograph of George Floyd, a victim of racism, and a black man who was brutally murdered by police in 2020 in the United States.

Meta Slave was a collection of NFT photos that sparked a discussion about depicting black slaves – Photo: Reproduction / Twitter @MetaSlaveNFT

The echo was completely negative, as the NFT collection tries to take advantage of the title that refers to the image of blacks and the word “slave”. After the comments, the company tried to justify itself by saying that it wanted to represent “we are all slaves to something” and that other collections would be launched in the future, such as whites and Asians. The project, however, was not. closed and changed only the name Meta Human (“Meta Humans”, in Portuguese).

4. NFT that is sold at the wrong price generates millions in losses

Imagine selling a $ 1.7 billion NFT for only $ 17,000. That’s what happened in December 2021 after a mistake in the Bored Ape Yacht Club series of digital artwork in the list. The owner of the monkey cartoon intended to list the piece in 75 ethereum, the cryptocurrency used in NFT trading, but eventually wrote it in 0.75 ETH.

Bored Ape number 3,547 sold out below value – Photo: Reproduction / OpenSea

Despite noticing the mistake immediately, the purchase was already made by a bot. The automated account paid a large fee immediately to secure the purchase, and then resold the piece for nearly $ 250,000.

5. Young presents the NFT project and disappears with the money invested by the users

In September 2021, an alleged 17-year-old digital artist presented an NFT project called “Iconics”. According to the author, the goal was to provide quality art, with a collection of 8,000 pieces. He also showed some on his Discord channel and pre-ordered NFT 2,000, which was sold in 0.5 solanas, another cryptocurrency used in these negotiations.

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

However, instead of receiving the artwork, all shoppers received a random collection of emoji. With the sale of the fake work, the scammer is believed to have collected the equivalent of $ 138,000. After the episode, the young man deleted his social media and disappeared with the money he had invested.

6. Ozzy Osbourne’s NFT facilitates the fraud that stole the singer’s fans

In December 2021, singer Ozzy Osbourne announced an NFT collection inspired by the episode that bit a live bat on stage. The CryptoBatz project had 9,666 bats and was made available in January this year. So far, everything has been fine, but the problem has been with the link used to direct customers to the Discord platform, which is widely used for NFT digital distribution.

Ozzy Osbourne’s NFT Collection Remembers an Episode Related to Bats in 1982 – Photo: Reproduction / CryptoBatz

Initially, the CryptoBatz team posted a link to Discord on social media, but later changed the URL. The criminals then took advantage of the first address to create a fake server on the platform. To enter the community, users had to verify their cryptographic assets, and in this way, criminals had access to the data of the victims’ wallets. According to the website Edgethere may have been about 1,300 victims of fraud, and there are those who had all the money in their wallets.

7. Music NFTs sell copyrighted content

Another discussion about the use of non-consumable tokens took place in February this year, when the HitPiece website sold song NFTs without permission. The platform released music from video games, Disney and famous singers like Britney Spears and BTS. However, there were complaints from artists on social media.

HitPiece sells NFT music without permission – Photo: Playback / HitPiece

According to the authors, the site did not have the right to the works, nor the permission to sell them. The platform defended itself by saying that it paid artists every time a product was sold. However, after the controversy, the business seems to have rested. HitPiece only displays the message “We’ve started the conversation and we’re listening”.

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