Now that we’ve seen many ways that NFTs can be profitable and even romantic, what are the risks of buying one? The first thing is that there’s no guarantee that the creator of an NFT won’t simply produce another one with the same content. That would be a problem because, unlike physical paintings in which artists typically do not set out to paint the same thing again, there would likely be some minute differences to set the paintings apart even if they tried to. For an NFT, it’s as simple as copy and paste, and it would destroy the illusion of scarcity very quickly, to say the least.
The second issue is people stealing work created by others, tokenizing and then selling them. This has happened with images posted by artists on Twitter and other social media platforms, and even tweets. Many services that offer NFT creation services allow artists to reclaim their works, but it can be an arduous process.
In some instances, artists have had to resort to intellectual property lawsuits to enforce their rights. Because the original files are typically hosted by the startup on which the NFT is sold, if an IP lawsuit requires them to take it down, it would mean the NFT buyer doesn’t have the original file anymore, and the token code would only lead to an empty space on the blockchain. The same thing will happen if the startup goes bust for any reason.