The proliferation of blockchain technology and the advent of decentralized gaming have both contributed to the surge in popularity of non-fungible token, or NFT, gaming ventures during the last few years. Because they provide gamers and investors with the opportunity to possess one-of-a-kind digital goods that can be exchanged, collected, and sold, NFTs have emerged as an appealing investment choice in recent years.
Despite the fact that the NFT gaming industry has a tremendous amount of potential, it is essential to be vigilant against fraudulent enterprises and frauds. Here are ten tips provided by Chainplay that can help you identify a fraudulent NFT gaming project.
Scammers often make extravagant promises about their projects or investments, and they guarantee returns on investments that are impossible to achieve. If a venture claims to make you wealthy overnight, you should exercise extreme caution before engaging in it.
Lack of transparency
The development process, the team working on the project, and the technology should all be openly discussed in a legitimate NFT gaming project. It is a warning sign when certain aspects of a project are not discussed in an open and honest manner.
Anonymous or fake team members
Scammers sometimes conceal their identities by working with anonymous team members or by creating fictitious identities in order to create the impression that their scheme is legitimate. Do some background research on the people who will be working on a project, check out their LinkedIn profiles, and see if any of them have previous experience in the game business.
Nothing to show, not even a prototype
A possibility of a scam is when the NFT gaming project does not yet have a product or prototype to demonstrate its claims. Be careful to examine a working model of the product or play a trial version of the game before you commit any money.
Absence of involvement in the community
A respectable blockchain-based game should be involved in the community and have interactions with players and possible investors. It is a warning sign if a project does not have any presence on social media or contact with the community.
No whitepaper or documentation
A whitepaper is a document that provides an overview of a project, including its many aspects such as its technology, objectives, and token economics. It is possible that a project is not reliable if it does not have a whitepaper or any other kind of documentation to support it.
No code repository
The source code for a project is often kept in something called a code repository. A respectable project’s code repository needs to be open source, allowing anybody to see its contents and do audits on them. A project should be considered suspicious if it does not have a code repository or if it does not provide access to its code.
There are no partnerships or other forms of cooperation
In the gaming business, a credible NFT gaming project should have partnerships or cooperation with other firms or projects. A warning sign is a project that does not have any partnerships or cooperation with other organizations.
No smart contract
NFTs are decentralized digital assets that are established on the blockchain and are protected by smart contracts. The absence of a smart contract in a project should serve as a warning sign.
There is no information regarding the economics of tokens: The token economics of a project need to be laid out in a way that is transparent and simple to grasp. It is a warning sign when a project either does not disclose information on the economics of its tokens or has a token model that is complex.
To sum up
In conclusion, it is essential to exercise extreme caution before investing in any kind of non-traditional (NFT) gaming. Be careful to do your own research and exercise due diligence before making any investments, and keep an eye out for red flags that might indicate you’re being taken advantage of. You may reduce the amount of risk you take on and be certain that you are contributing to a legitimate NFT gaming venture if you follow the advice in this article.
The NFT gaming market has a lot of promise, and if you approach it in the proper way, you will be able to take part in this fascinating and quickly developing field.