The Dark Knight of the Parable and Staiy explain why MontanaBlack is probably unknowingly involved in an NFT scam.
MontanaBlack recently made an NFT giveaway and participated in the current NFT hype. He not only caused a lot of criticism with a swastika illustration.
The YouTube video “The Dark Knight of the Parable” is about the “fraudulent” use of NFT (Non-Fungable Token) technology. In just under 30 minutes, he explains with the help of colleague Staiy why the NFTs promoted by influencers like MontanaBlack border on fraud.
What are NFTs?
Before we explain the term non-fungable tokens, we will briefly explain fungible tokens to you. With regard to cryptocurrencies such as Bitcoin or Ethereum, all tokens are interchangeable, ie. It does not matter which token you own – they are all worth the same. This is not the case with NFTs. Non-fungible tokens are unique.
NFTs are therefore ideal for things that only exist once or only a few. It is currently digital trading cards, game figures or so-called crypto art. However, ID cards, vaccination certificates or other important documents could also be stored and secured via blockchain, Der Dunkle Parabelritter explains in its video.
How can NFTs be a scam?
The video explains the positive possibilities of NFTs and why the type of NFTs you are dealing with in the influencer hype are different and thus actually duping the community.
Normally, the information about a digital image is stored on Ethereum coins. This actually makes the image unique in the digital world. Unfortunately, the first sentence of this section is no longer correct.
Digital works are not stored on the blockchain, only the hyperlink that leads to the digital image. Buyers spend relatively much money on an NFT because they think they are acquiring ownership of a digital work. This fact results in a long rat tail. Check out the video for it.
The works themselves are far too large and therefore far too expensive to store. According to the video, back in 2016, it would have cost $ 75,000 to store 1 GB on the blockchain. By 2022, this should have become much more expensive.
Another ‘scam’ does not affect the buyers, but the artists, whose works are often stolen from online sites and stored in marketplaces as NFTs. At the moment, there is almost nothing that can be done about it.
What is the problem with MontanaBlack?
The NFTs are expensive and ‘valuable’ just because people value them highly. The more people do this, the more expensive they become and the more hyped they become. This is where influencers like MontanaBlack come in. Its reach and its promotion of these NFTs increase the hype and hence the value of these hyperlinked NFTs.
Same level as casinos
The Dark Knight of the Parable compares Monte’s NFT promotion with his casino promotion:
The bank always wins at the expense of people who can not afford. But it does not matter if you have a stake in the bank.
Ultimately, it is not the phenomenon of NFTs that is being criticized here, but rather the way in which individual parties use them. The principle of NFTs and how this technology can be used positively has been made very clear in this video. We recommend that you watch the video once in its entirety.
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