With all the craze around NFTs, new terminologies keep popping up. And it is a fast-paced environment, so you need to remain updated on all the latest news in the NFT market. One such new term trending in the crypto world is “Unruggable NFTs”. Now the question arises: “What is Unruggable NFT?” and “What place does it hold in the NFT market?”. Let us find out.
But, hold on, before delving into the Unruggable NFTs’ world, let us first get a basic understanding of NFTs. NFTs or Non-fungible tokens are digital artworks. They may consist of art, games, music, etc. They are unique and are traded on various NFT marketplaces. They are created on blockchains and can be bought or sold using cryptocurrency. They are currently a trending way to invest your money in buying digital assets. Now let us understand Unruggable NFTs.
What are Unruggable NFTs?
Unruggable stands for something which cannot be rugged. In the NFTs world, this represents NFTs that are scam-proof. Since the rise in popularity of cryptocurrencies and NFTs, scammers have popped up everywhere on the market. To fight these scammers, Unruggable NFTs were created so that investors do not shy away from investing their money in the crypto market. These NFTs give a guarantee to the investors that they will not be scammed of their hard-earned money.
Unruggable NFTs are the best answers to “Rugpull”. Scammers create new projects with malicious intent to rob people of their money. These projects entice investors to spend their money on them and once a decent amount is collected, the scammers just poof into thin air. This is done by developers using some codes inserted into the smart contract and this process is called Rugpull.
Unruggable NFTs are theft-proof and hence cannot be taken from the owner. Now let us understand how they are created and their advantages.
Why are Unruggable NFTs in Demand?
- Unruggable NFTs are created on blockchains.
- However, unlike other cryptocurrencies such as Bitcoin or Ethereum, they are unique.
- Developers create rules to prevent liquidity and use smart codes to limit the number of sales of these NFTs.
- The locking liquidity method is used which means that a part of the token’s value is kept in reserve.
- This prohibits massive sell-offs hence preventing a price reduction.
Why Should You Invest in Unruggable NFTs?
Now that we have discussed the hows of Unruggable NFTs, let us understand why you should invest in them.
- They cannot be stolen or hacked from the owner.
- Since there is no worry of losing private keys, they can be easily transferred and traded in the marketplace.
- They are flexible and can be customized according to a user’s needs.
- Unruggable NFTs are stored on the blockchain permanently.
- They can be traded instantly without needing a third party.
However, Unruggable NFTs come with their own set of risks. As with normal NFTs, they are also affected by market volatility. They may be viewed as a marketing gimmick by the investors, so they may not be traded in the marketplace.
Also Read: What is OpenSea NFT?
How to Determine if an NFT is Secure to Invest in?
- Small tokens are best to invest in.
- Tokens that hold value are hackproof as compared to those with money.
- Examining the cryptocurrency’s market cap allows you to determine whether it is hackproof.
- A token with a small market valuation is worth investing in.
- These tokens hold a huge amount of currency and are in large quantities.
- Hence, they take time to value.
What are the Uses of Unruggable NFTs?
Unruggable NFTs can be used in the following ways:
Weapons or unique avatars are generated in video games using Unruggable NFTs. They can also be used to store in-game progress. Since the created assets cannot be copied or modified their value raises and they are safe to use.
Artists can be assured of their ownership and owing to the theft-proof nature of these NFTs, they can receive fair pay. This gives the artist a safe platform for showcasing their artwork.
Unruggable NFTs are used to authenticate and prove ownership of music hence providing appropriate compensation to musicians.
- Real Estate:
Property or real estate transactions can be kept safe and secure using Unruggable NFTs. Proving the ownership will be easy and fraud-proof. This will also limit the necessity of middlemen.
Unique artifacts can be created and by producing a limited amount, their worth can be increased.
- Digital Identity:
Personal information containing ID numbers, biometric data, etc. can be stored online safely. This helps to avoid scammers and keep the details secure.
To conclude, Unruggable NFTs are a way to own digital assets without worrying about ownership theft. They are a fraud-proof way of showcasing your interests by investing in things you are passionate about.