Reported by: Team Giottus

Part of the reason why the NFT market is now being looked at with suspicion is the fact that unlike crypto, KYCs are not mandated to trade NFTs. NFT trade happens between wallets and not identified individuals, which makes NFT money laundering a very real possibility.

As an investor, how can you spot malpractice? Here are a few pointers.

Price: If the NFT you’re looking to buy is priced significantly higher than the collection’s floor price, then it is possible the NFT has been traded, especially if that NFT has little to no rare attributes that might explain a higher price point.

Transaction history: Tools like Etherscan and BscScan can be used to check the transaction history of an NFT. Some marketplaces, like OpenSea, also display this information on their listing pages. A sudden jump in the price of an NFT without any prior activity could be a sign of wash trading.

Previous owners: Look out for wallet addresses that show up multiple times in the transaction history. If the same wallet has purchased an NFT multiple times, then it could be a sign of wash trading. You can also look at individual wallet addresses to see if they’ve interacted with other wallet addresses listed in an NFTs transaction history – another potential sign that the wallets may be closely linked to one another.

Read full report: https://www.thenewsminute.com/article/how-spot-nft-scams-171337?amp