NFTs, or non-fungible tokens, currently have a global market cap of $40 billion and are fast approaching the $50-billion mark. Thanks to the growing popularity of the sector, it is also becoming a target for thefts. As per data from blockchain research firm Elliptic, as reported by Reuters, thieves stole NFTs worth over $100 million in the year to July. For those unaware, NFTs are unique digital assets that are marked by exclusive features. If you own an NFT, you can rest assured that no one else can own the exact same NFT with the exact same features, leading to the high value and demand for such tokens.
The month of July saw the most number of NFTs reported stolen on record, as per Elliptic. The data suggested that 23 percent of NFT thefts in 2022 are caused by security compromises via social media. Bad actors have gained an average of $300,000 per scam. Elliptic also added that the actual number might be higher, as not all such crimes are reported publicly.
ALSO READ: NFTs: How India Can Emerge As A Frontrunner
"There is a growing threat to NFT-based services from sanctioned entities and state-sponsored exploits," Elliptic said, citing a $540 million theft in April that U.S. officials have linked to North Korea's Lazarus Group, Reuters reported.
In the meantime, more and more brands and celebrities are jumping onto the NFT bandwagon. Earlier this month, Meta-owned Instagram said it is expanding support for non-fungible tokens (NFTs) to 100 countries, after an initial test launch in the US back in May this year. Meta CEO Mark Zuckerberg additionally shared that his old Little League baseball card will be converted into an NFT soon. With the NFT support, Instagram will allow users to share their digital collectibles on the platform, instantly tagging the creator and the collector.
ALSO READ: Should Creators Consider Selling Their Art Online As NFTs?
Instagram’s NFT support follows the footsteps of Twitter, which enabled NFT profile pictures for its premium users. Even Reddit launched an NFT-based avatar marketplace, which allows users to buy NFT profile pictures. YouTube, on the other hand, may soon start supporting NFTs as well to help support creators on its platform.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.