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How does transparency give high value to NFTs?

NFTs have boomed in the last year, increasing their value considerably. However, there are many detractors of this digital world. One of them is Bill Gates, a renowned businessman, and owner of Microsoft.

Among other things, the American tycoon said that NFTs lack credibility. This is because there is neither a prominent framework that generates confidence for investors nor, in addition, no entities responsible for the scams that can occur, causing people to lose money. The last detail he mentioned was that it is a very volatile and somewhat sentimental market. Any NFT can skyrocket in value or, on the contrary, be worth very little.

This can sow doubts in all the people who wish to invest in NFTs. That is why we discuss in this post all about transparency, which is a crucial bulwark that makes this market grow more and more.

Also, we will mention details that reasonably contradict Mr. Gates' theory since this market has made itself, thanks to the participation of all the communities of users and artists. So let's get straight to the point:

How to find transparent NFTs?

Before we dive into this world, we should tell you that thousands of transparent collections of NFTs can give you your money's worth and generate permanent profits. However, since this is something new, perhaps we should help you identify dubious collections. So let's look at what a group must have to be legitimate:

• You must know who the creators of the collection are and verify their profile in the preferred marketplace

• Do not follow links in e-mails that you receive promoting an NFT, you must do your own research in your trusted marketplace

• Do not trust NFTs that are displayed in unknown marketplaces and/or in imitations of real marketplaces, in our "Marketplaces" section you can find the trusted links

• Be careful with imitations or copies of NFTs, you should always check the creator's profile and do your own research before buying, beware of ridiculous prices

• Be careful if you receive an NFT as a gift, this practice is often used to generate interest in buying other NFTs from the same collection, although it is a practice to promote collections of legitimate NFTs, there are also many scammers who abuse these issues

• Check if they use bots to promote themselves

• There is no innovation, it generally occurs in NFTs associated with games that "pay" to play, there are many copies and imitations of games like Axie Infinity that we have already mentioned in another article, you can read it by clicking here#axie-infinity.

• They promise you a game in the roadmap

• The creators of these scams often hire celebrities or YouTube channels with many followers to promote these scams, and sometimes the creators of the scam are the same owners of the YouTube channel where they promote it, we have written an article with all these details, you can read it by clicking here.

• If you see artificial Hype (they hire a celebrity to promote them)

As there is a legal vacuum on these new technologies, this further motivates fraudsters to carry out their purposes. We understand that over time this could start to be legislated, in the meantime you need to be very careful and do your own research.

All these aspects take away transparency from crypto assets and perhaps explain why they experience a significant rise in scams. However, let's also look at why transparency is crucial to NFTs.

NFTs use Smart contracts

Smart contracts are creations that reinforce the transparency of assets on the web. The Blockchain serves as the creation and execution space for the contracts, giving more transparency.

This is important because they also relate to Bill Gates's statement about NFTs. The point is that Bill is a billionaire because of Microsoft's performance in the marketplace (which is based on Web 2 technology). But, unlike Blockchain technology, NFTs are directly related to what we know as Web 3. So it is logical to hear him smear campaigns about NFTs.

More importantly, however, transparency has made it possible for large companies to start looking at NFTs as an investment opportunity. Companies like Louis Vuitton are now selling their most prestigious collections through the NFT exchange. Many artists are also beginning to invest in and create their own NFTs.

This has been achieved thanks to the transparency built by all those involved in creating NFT.

So, the most important thing you need to know is to identify the genuine proposals from the misleading ones. We have already given you several trends of deceptive proposals because they are related elements in all these projects. Remember that NFTTrends studies all these markets daily to provide you with the recommendations to follow to enjoy this virtual world.

Transparency pays permanent dividends

This last point is significant. The reason is that artists can create confidently by exchanging NFT on trusted markets and smart contracts.

Why? Because artists, once they sell their art, they get royalties for each subsequent sale. This is great for artists. Buyers, too, can take advantage of marketplace opportunities to profit with a couple of transactions.

Markets gain prestige as they engage in more transactions, as well as those who participate in transactions to buy and sell digital assets. That is why transparency has been that element that leverages the success of this world.

We must accept that this type of asset is gaining credibility and popularity, which makes a person who wants to invest should be well informed and bet on the future.

Please take the opportunity to inform yourself through all our definitive NFT guides and get into this exciting world of digital assets.

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