BitsCrunch
As NFTs become increasingly popular, users need assurance that what they are buying is not counterfeited and/or with an inflated price. Chainlink BUILD partner BitsCrunch is an NFT analytics protocol aimed to prevent exactly this.
As a mostly unregulated market, users trade in a "wild-westian" environment, where wash-trading is common and forged NFTs are not a rare sight. BitsCrunch aims to be the blue checkmark of the NFT industry with 3 main tools
NFT wash-trading analysis
Using machine learning they analyze over 95% of existing NFTs across different chains to identify wash-trading patterns.
They can identify every single wallet an NFT has been to, the amount of time it has been in, the price when it arrived and when it left the wallet.
Combining it with AI tools analyzing patterns between wallets, BitsCrunch can identify if an NFT is inflated in value.
NFT Value Authentication
A price estimation tool. Combining off-chain and on-chain data along with AI, BitsCrunch can determine the true value of NFTs and see through their inflated price.
Gathering data like search volume, social media sentiment, trading volume, rarity score, sale history and more they are able to determine what would be a "fair" price for a determined NFT.
This tool can have various use cases:
NFT marketplaces can inform buyers and sellers what a competitive price for a given NFT should be.
Lending protocols can use it, to determine the value of an NFT when it's used as collateral for a loan.
NFT Forgery Detection
Using AI, BitsCrunch can determine if an NFT or collection is forged or counterfeited and even if a pixel or colour has been changed.
This tool prevents users from losing funds on fraudulent collections and NFTs that try to pass by a Brand like Nike or a collection like Bored Ape. These tools are available for retail users -with dashboards- as well as for enterprises -with APIs.
This overview was originally published on February 20th 2023.
