<h3 id="introduction">Introduction</h3>Non-Fungible Tokens (NFTs) have transformed from just digital assets to become a million-dollar industry. The first NFT “Quantum” created by Kevin McCoy in 2014 sold for just around $4. Now NFTs have transformed into an industry with a valuation of about $40 billion as of the end of 2021, boasting about 28.6 million unique wallets‌. “The Merge” by Murat Pak sold for a whopping $92 million and remains the most expensive NFT sell to date. During this period of boom, NFTs have also seen more applications. Now, NFT Tokens are widely applied in gaming, real estate, intellectual property, and patents. More recently, NFTs have been in the automobile industry to create a tamper-proof and publicly accessible record of car ownership.As the transaction size and use cases of NFTs increased, so also did the complexities and the risks associated. These risks have become a major cause of concern and a reason for increased analytics. It will be good to recall that in 2022, the UK tax department seized NFTs as part of a £1.4 million fraud case.In the past, Web3 enthusiasts and investors have touted the native security features on the blockchain as being sufficient. However, as days turned to months and months to years, there is no denying that the amount of cash flow into Web3 has made it a fertile ground for scammers, thieves, and hackers of all sorts who largely benefit from unsuspecting and naïve persons in web3. FOMO and ignorance have also been major contributing factors to Web3 scams and hacks. These hacks have varied from phishing scams to compromised websites, URL spoofing, and fake browser extensions. The list of possible ways in which cyber-attacks can play out is endless as new scams are discovered every day.Cyber-attacks have been thought in the past to only attack prominent NFT collections as most attacks that caught attention were targeted at blue chips. For example, in April 2022, the BAYC Instagram attack hack led to a loss of NFTS worth about $2.8 million. Months later, a discord exploit saw also NFTs worth around 200ETH being stolen.<img src="https://miro.medium.com/v2/resize:fit:1400/1*3dkzmTvGTZujkX5-0bfW8Q.png" /><h3 id="complexities-of-nft-risk-assessment-and-how-to-overcome-with-nftscan-nft-data">Complexities of NFT Risk Assessment and How to Overcome with NFTScan NFT data</h3>A widely talked about complexity in NFT risk assessment is the lack of standardized data storage methods among various NFTs. This is due to variations in the smart contract code as a lot of NFTs do not adhere to the standard, with each product having a unique way of storing its metadata. This can present as a barrier to many data infrastructure platforms; but at NFTScan, we standardize and present the data clearly and as such, risk assessment can be made easier, faster, and more efficient.<img src="https://miro.medium.com/v2/resize:fit:1400/1*E8ILvHrY-mWQyqfSp6JZ1g.png" />NFT Data Quality ComparisonWhether it has the feature of full NFT data tracking determines whether the data service provider can provide developers with professional and detailed NFT assets and NFT transactions data. As mentioned above, NFTScan ensures the completeness and high quality of NFT data by tracking and analyzing every transaction on the blockchain realtime.The feature of NFT marketplace interpretation reflects the depth and professionalism of NFT data. As mentioned above, NFTScan continuously includes NFT trading markets and their trading contracts on various blockchain networks. This is also the biggest advantage of NFT data service where NFTScan stands.Considering most NFT image resources are IPFS links, and it faces a problem with the slow loading speed, NFT images on the Ethereum network are continuously compressed and transferred to AWS S3 within NFTScan. Additionally, global acceleration through CDN is also used to improve the performance of loading NFT images.Another complexity that can often stand as a stumbling block when monitoring on-chain transactions and forming opinions can be technical know-how, time, and understanding. With NFTScan API, this stumbling block is easily overcome. Our APIs enable large data sizes to be automatically retrieved and processed in real-time without the need for complex manual operations and judgment while also optimizing costs for you.<img src="https://miro.medium.com/v2/resize:fit:1400/1*szV-1NFxRJ_rtpMq8IheTw.png" /><a href="https://developer.nftscan.com/" rel="noopener noreferrer nofollow">NFTScan Developer Platform</a>Basing the value of the NFT on the reputation of the project team and transaction volume on the team’s past projects may not tell a true story as wash trading is a common marketplace manipulation. With <a href="https://www.nftscan.com/" rel="noopener noreferrer nofollow">NFTScan</a> Explorer, real-time on-chain analysis and statistics can be used as a fool-proof mechanism to detect wash-trading.<img src="https://miro.medium.com/v2/resize:fit:1400/1*2RVcQsq5ARGMHf0TyEEm7A.png" /><a href="https://www.nftscan.com/" rel="noopener noreferrer nofollow">The NFT Explorer of 16 blockchains</a><h3 id="making-informed-decisions-the-key-to-proper-risk-assessment-with-nftscan">Making Informed Decisions, the Key to Proper Risk Assessment with NFTScan</h3>Informed decisions are decisions that are made based on facts and not based on emotions or FOMO. The ways and manners fraudulent activities can present might change as malicious actors are numerous and creative, using sophisticated techniques to catch people off guard. Making informed decisions using well-detailed, presented information can never go out of date. Well-detailed information can keep you ahead of the curve with comprehensive data that can help you make informed decisions and be one step ahead of malicious actors without compromising confidentiality and integrity.While several tools can be said to be “web3 security innovations”, proactive prevention with well-informed decisions remains the best way to curb and prevent these bad actors. Knowing a phishing link by running background checks, and knowing a cash grab by taking a detailed look at their smart contract (as most times they are usually malicious and integrate dangerous logic), are important ways to spot these bad actors. With NFTScan, all these are just a click of a button away.<img src="https://miro.medium.com/v2/resize:fit:1400/1*qreGbPpxGj4ty7Ib9Rewtw.png" /><a href="https://portfolio.nftscan.com/watchlist/contract" rel="noopener noreferrer nofollow">Add watchlist for free </a>(NFTScan Portfolio)<img src="https://miro.medium.com/v2/resize:fit:1400/1*8Y_mNlm6EW4GtdYTR2jB7g.png" />NFTScan API DocA wise man once said, “When in doubt always ask”. This same principle can be applied to detecting and preventing malicious actors by monitoring transactions using NFTScan Explorer. Abnormal price movement, unusual trading activities, and back-and-forth trading can give you a good idea of malicious attempts.Using NFTScan API, you also can create a simple data analytics platform <a href="https://medium.com/nftscan/how-to-develop-an-nft-data-analysis-platform-using-nftscan-nft-api-845394c03620" rel="noopener noreferrer nofollow">Guide</a>. This can help you achieve functionalities such as NFT trend analysis, holders’ analysis, and transaction analysis to make you make better-informed decisions. Using NFTScan to build a data analytics platform makes you better equipped with an understanding of the market and the ecosystem. Additionally, NFTScan API can help you build and develop customized solutions that will provide data support and insights to make decisions based on your requests.<img src="https://miro.medium.com/v2/resize:fit:1400/0*X4gYFO4wOfnJGyzf.png" /><h3 id="about-nftscan">About NFTScan</h3>NFTScan is the world’s largest NFT data infrastructure, including a professional NFT explorer and NFT developer platform, supporting the complete amount of NFT data for 15 blockchains including Ethereum, Solana, BNBChain, Arbitrum, Optimism, and other major networks, providing NFT API for developers on various blockchains.Official Links:NFTScan: <a href="https://nftscan.com/" rel="noopener noreferrer nofollow">https://nftscan.com</a>Developer: <a href="https://developer.nftscan.com/" rel="noopener noreferrer nofollow">https://developer.nftscan.com</a>Twitter: <a href="https://twitter.com/nftscan_com" rel="noopener noreferrer nofollow">https://twitter.com/nftscan_com</a>Discord: <a href="https://discord.gg/nftscan" rel="noopener noreferrer nofollow">https://discord.gg/nftscan</a><a href="https://www.nftscan.com/connect-program" rel="noopener noreferrer nofollow">Join NFTScan Connect Program</a>

Insight: NFT Risk Assessment and Evaluation

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