Having a due diligence done by a competent firm is a must have for any project, and with the expertise of QuillAudits it will be done flawlessly. The due diligence process for NFT is based on the comprehensive approach we follow to investigate the code for security flaws and potential vulnerabilities, and the best possible ways to mitigate them.
NFTs are today exchanging hands at a tremendous value, as evident from an artwork of an NFT artist Beeple selling for a whopping $69 million in a Christie’s Auction. On Axie’s Infinity, a gaming platform, a virtual property seller sold a digital estate at $1.5 million dollars. While these stupendous volumes are prompting the launch of new NFT projects and startups, it is also attracting artists, gamers, sellers, traders, and many more to test and try their luck.
Problem is – the lucrative terrain is also attracting cyber-criminals who want to make some quick money. There are also some peculiar issues that threaten to wipe out the entire investment of the entrants. Due Diligence can protect the NFT entrepreneurs, investors, and traders from such loss.
Contrary to perception, the NFT is not the underlying item purchased itself, but a sort of certification about the ownership of virtual assets. Here are a few major threat vectors that might push your NFT venture off the rails.
Problems like account hacking, creation of unauthorized NFT versions, plagiarism, and more have trickled into the ecosystem.
Code mistakes may translate into gaping holes leaking out millions of the NFT owner.
Without contractual obligation, the virtual asset underlying the NFT may go inaccessible.
Conducting Due Diligence is imperative to prevent your NFT from turning into a bubble waiting to burst. Anyone wishing to participate in an NFT transaction needs to be aware what is transacting under the hood. A few salient features of NFT Due Diligence are under-given.
Minting of the NFTs in the asset owner’s wallet without their knowledge happens because of an anatomical defect in smart contracts. Due Diligence can detect the issue, nipping it in the bud.
Simple mistakes while coding could result in unexpected consequences. Due Diligence helps in discovering the severity of errors in time and taking adequate remedial steps.
Verifiable authenticity of an NFT is the direct outcome of how it was minted. Our team checks the process threadbare to ensure proper and secure minting.
If the virtual asset beneath NFT is corrupted or removed, the buyer will lose access. To ensure this, we ensure the smart contract provides for hosting of virtual asset in an accessible format.
Between 2012 and 2019, approximately $700 million was lost to hackers, with a low 0.2% recovery rate.
In 2020, $300 million was lost to hacks, but $55 million was recovered with an 18% recovery rate.
In 2021, Web 3.0 saw an immense loss of $2.3 billion, but $652 million of the funds were returned to victims, the highest recovery rate to date.
In 2022, Web 3.0 projects lost ~$4 billion to hacks, scams, and exploits, surpassing the total funds lost between 2012 and 2020.
Very professional and timed delivery. Also very prompt in responses and queries.
The team is very supportive and they were able to work as per our requirements
QuillAudits did a great job with our audit, was very professional and provided quick service
QuillAudits provided security enhancements for Polygon projects, earning positive feedback for their prompt and high-quality service as an auditing partner.
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NFT is a cryptographic token bearing an emblem of ownership.
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