New trends like NFTs (Non-Fungible Tokens) and cryptocurrencies have quickly become hot topics in the art world. These technologies open up exciting new opportunities for artists, but they also bring risks, especially when it comes to selling your art. Below, we explain these concepts and give you practical advice on how to navigate safely if you are contacted by someone regarding this.
An NFT is a unique digital asset that uses blockchain technology to verify ownership. NFTs can represent a variety of digital objects, such as artwork and music. However, it is important to understand that an NFT is not the artwork itself, but rather a digital certificate that proves ownership of a digital copy of the artwork.
Cryptocurrencies are digital or virtual currencies that use cryptography to secure transactions. Unlike traditional currencies, which are issued by governments, cryptocurrencies are decentralized and often powered by a technology called blockchain. Their value can fluctuate greatly, which can make them both exciting and risky to use for payments and investments.
Unfortunately, there are many unscrupulous actors on the internet who are taking advantage of the excitement surrounding NFTs. People claiming to want to buy your art as an NFT may actually be trying to scam you out of money or rights. If you are contacted about creating an NFT, be skeptical and investigate thoroughly before proceeding with the purchase process.
You should also be wary if someone offers to pay for your art with cryptocurrency. If you have no experience with cryptocurrencies, refrain from responding to the message and read up on the subject first. As above, these types of requests are usually scams. If, against your best judgment, you know the person contacting you, it is still best to always ask for payment in traditional currencies (e.g. EUR, USD).
1. The scammer has a fake NFT site they created, where they make you pay upfront fees and show fake listings. This will result in you never getting your money back in the worst case scenario.
2. They ask you to use and register on OpenSea (a popular NFT marketplace). After you post your NFT, they say there is an "error" when they try to purchase it. You then receive a fake email from OpenSea saying you need to pay an upfront fee.
3. They ask you to use and register on OpenSea and direct you to a fake moderator outside the platform. Again, they will say that you have to pay an upfront fee (e.g. a "gas fee" or similar).
Always be careful to protect your rights as an artist. Make sure you have clear agreements and that you understand all the terms before selling any work. If you still feel unsure or want more guidance on the subject, you are always welcome to contact us at [email protected]
