NFT metadata: What it is, why it matters, and what goes wrong

When you buy an NFT, you’re not buying the image—you’re buying a file called NFT metadata, a digital file that links to the artwork, owner details, and rules for use. Also known as token information, it’s the only thing that proves you own something on the blockchain. Most people think owning an NFT means owning the art. It doesn’t. The metadata tells you where the image is stored, who made it, and what rights you actually get. If that file breaks, disappears, or was never real to begin with, your NFT becomes a digital ghost.

NFT metadata is supposed to include the image URL, name, description, and attributes like rarity or traits. But here’s the problem: over 80% of NFTs store this data on centralized servers like Amazon or Google—not the blockchain. That means if the company behind the NFT shuts down, your NFT turns into a broken link. Look at projects like Lunar Crystal NFT or FarmHero—they promised free NFTs, but the metadata vanished. No one got the art, and the tokens became worthless. Even worse, some NFTs have metadata that says "image not found" or "coming soon"—and that’s still being sold.

What you own is just a pointer. The real value is in the metadata’s integrity. If the image is hosted on IPFS, it’s more likely to survive. If it’s on a private server, it’s already dead. And if the metadata includes false claims—like "commercial rights" or "royalties"—those are often meaningless unless written into the smart contract. That’s why NFT art ownership rights are so confusing. You can’t use the image for merch, prints, or ads unless the metadata and contract say so. Most don’t. And if the project’s team disappears, no one can fix it.

That’s why so many NFT airdrops fail. HashLand Coin’s New Era NFT promised exclusive mining NFTs—but if the metadata isn’t properly stored, you’ll never see it. Same with LNR’s Lunar Crystal airdrop. The tokens were distributed, but the NFTs? Never delivered. The metadata was either never created or deleted. No one could prove ownership because there was nothing to prove.

So when you look at an NFT, ask: Where is the metadata stored? Is it on a decentralized network? Is the image file still live? Does the description match what was promised? If you can’t answer those questions, you’re not owning an asset—you’re holding a digital receipt for something that might not exist.

Below, you’ll find real cases where NFT metadata failed, scams that hid behind fake metadata, and projects that got it right. No hype. Just what happened—and how to avoid the same fate.