How Can a “Dirty” or Compromised NFT Provenance Affect Its Market Value?

A "dirty" provenance, such as a history linked to theft, illicit activities, or unauthorized minting, severely diminishes an NFT's market value. Since the blockchain immutably records the entire history, a compromised past is permanently visible, making the asset undesirable for legitimate collectors and investors.

In a financial context, an asset with questionable provenance would be deemed too high-risk to be accepted as collateral or as the underlying for a derivative contract.