Are NFTs a scam? One man has created a 20TB repository of NFTs called ‘NFT Bay.’
Non-fungible tokens (NFTs) are taking the music industry by storm. Several marketplaces have sprung up offering pieces of artwork, golden tickets, and more – all sold as an NFT. But one man questions the idea of NFTs and if buying a digital piece of a blockchain really proves ownership when anyone can ‘right click’ and save a picture.
Australian Geoffrey Huntley went on the heist of NFTs to download 20TBs of NFTs on the Ethereum and Solana blockchains. Huntley told gaming blog Kotaku that the ‘NFT Bay’ (modeled after the infamous Pirate Bay) is an experiment designed to teach the public about what NFTs are and aren’t.
Are NFTs a Scam?
“Fundamentally, I hope people learn to understand what people are buying when purchasing NFT art right now is nothing more than directions on how to access or download an image,” Huntley says. “The image is not stored on the blockchain and the majority of images I’ve seen are hosted on web 2.0 storage, which is likely to end up as a 404, meaning the NFT has even less value.”
Essentially, owning an NFT tied to artwork is like owning a certificate of authenticity. When the ‘golden ticket’ owners of the NFT sold by Kings of Leon show up for a concert, their status will be verified using that NFT. But skeptics believe non-fungible tokens aren’t capable of being the digital identifiers they claim to be.
Computer scientist Antsstyle says “NFTs are only valuable as tools for money laundering, tax evasion, and greater fool investment fraud. There is zero actual value to NFTs. Their sole purpose is to create artificial scarcity of an artwork to supposedly increase its value.”
That assessment is the core argument to whether NFTs are a scam or not.
If concert organizers are distributing concert tickets using the blockchain and ‘golden ticket’ owners can resell their rights using NFTs – is that useless? It’s already being done for future Kings of Leon concerts and ties a physical experience to the holder of that specific NFT. Those NFTs lose value eventually; Kings of Leon won’t be performing on tour forever.