The world of non-fungible tokens (NFTs) has grown exponentially in less than a decade, expanding from pixelated punks to an established proof-of-ownership for digital and physical assets. While the NFT market has enabled true decentralization, the lack of standardization has led to confusion for users between different marketplaces, collections, and pricing methods. This fragmentation has created adverse effects that the decentralized finance (DeFi) space faced during its infancy. We are going to discuss NFT Market Security through AI-based tools.
The unregulated growth of the NFT market has also led to security issues and threats, including plagiarism, wash trading and copy minting. Without proper standards and toolkits, malignant NFT owners could use wash trading to artificially increase NFT prices via fake transactions, copy someone else’s original work, or engage in other malpractices and foul play. To prevent such problems, the NFT ecosystem must follow the DeFi space’s example and adopt blockchain analysis tools, artificial intelligence (AI), and machine learning (ML) to provide a safe, accessible, and trustworthy experience.
Blockchain analysis tools have been instrumental in ending the “Wild West” era of decentralized finance, allowing users to get instant, unbiased information about any DeFi protocol, token, or marketplace. With the rise of AI and ML, the NFT space can detect security threats and provide reliable insights into the NFT market, including NFT marketplaces and fast-growing collections. “While NFTs have been around for over seven years now, they were only recently recognized as one of the revolutionary technologies the world has seen,” noted Vijay Pravin Maharajan, the co-founder and CEO of bitsCrunch, a team of data analysts and AI experts focused on blockchain technology.
Maharajan added that “this industry needs more trust and transparency in the form of accurate and accessible NFT insights.” To that end, bitsCrunch recently launched an NFT analytics and forensic platform named UnleashNFTs. The platform equips users and creators with reliable insights into the NFT market, including wash trading activity, potential security threats, and NFT collections. The platform aims to help users make informed decisions for each NFT transaction by providing in-depth analysis, research, and statistics about the NFT ecosystem.
The AI-powered platform shows statistics on potential wash trading activities in varied time frames, revealing the number of suspected volumes, totally washed value, and how many wallets have been trading them. Wash trading occurs when one or multiple traders buy and sell an NFT to create an artificial demand that results in higher floor prices. UnleashNFTs also provides a dedicated wash trading analysis section, proper data visualization, user-friendly infographics, and in-depth market reports, solving the confusion and unfair pricing for NFT users.
Proper data visualization and reliable insights have solved the confusion and unfair pricing for DeFi users, and now, it’s time to repeat the same winning formula with an even more fragmented and qualitative ecosystem. By giving NFT users a holistic view with accurate and accessible insights, bitsCrunch’s UnleashNFTs aims to expand the NFT market without losing accessibility and transparency. The platform’s goal is to make the NFT market a secure and reliable platform for creators, collectors, and traders, driving innovation and growth in the NFT ecosystem.