Non-fungible Tokens, popularly known as NFTs, came into the mainstream market in 2021. Crypto nerds are paying millions of dollars in cryptocurrency just to own NFT collectibles and art. Just like Bitcoins, NFTs are powered by blockchain technology. The uniqueness in each token has made their prices skyrocket, which gave scrupulous persons an opportunity to scam unsuspecting buyers.
Is NFT a scam? Certainly not! NFTs are collector’s items and are one of a kind. Once you buy it, it’s yours; no one else can have the same collectibles as you. It can be anything, not just art. Tweeter SEO, Jack Dorsey, was able to sell his first tweet as an NFT for millions of dollars. You easily buy NFTs and sell them in profits, which can become a legit investment.
Famous NFT Scams
It’s becoming quite hard to make a successful sell or buy with tons of scammers infiltrating the market. Plus, these scams are a whole new ball game in terms of sophistication. You can easily become a victim to them. Understanding NFT scams will put you in a better position to avoid being a victim of such circumstances. Let’s delve into the five famous NFT scams and pick them apart.
It’s one of the most common NFT scams to date. It happens when hackers have access to admin level discord server. These hackers can then post an enticing link on the announcement channel. The message usually goes along the lines of “Due to increased demand, we’re releasing 2000 more NFTs.”
The message will look as though it’s coming from the project organizers and are usually offering a sweet deal you can’t refuse. Hackers usually prey on sold-out NFTs because they create demand. Most project organizers usually put a link on a designated channel to avoid minting over sketchy URLs. Turn off direct messaging on your Discord, plus, keep in mind that a project organizer will never message you first.
Once you buy an NFT from such a website, it disappears. Scammers have replicated platforms like OpenSea, and are tricking unsuspecting buyers into buying links to NFTs from their website – Once you’ve made a purchase, it’s game over. You don’t have the NFT, plus the money in Ethereum.
They can easily change the image on the link to anything and leave you with nothing. It’s therefore essential to ensure you own some digital assets or images like JPEG, PDF files, or MP3 files. Remember to cross-check if the centralized platform you’re using is legitimate.
It happens when you’re trying to resell your NFT. After you list your sales, scammers posing as bidders will want to change the cryptocurrency they’ve used. It is a huge red flag as $5 is not the same amount as 5 BTC. It’s therefore essential to counter-check the currency plus refuse any lower bidders than you’re willing to pay.
Fake Cryptocurrency Influencer
NFTs became popular and led to celebrity endorsement. These celebrities popularize NFTs while they benefit in various ways. But with this came fake celebrity endorsement. Money has already been lost before people realize that a particular star is not involved in the endorsement.
All NFTs trades are done online, so you can have a finite of information regarding them. It’s therefore wise to conduct research on the project to know whether or not the endorsement is real or fake. Plus, see if the project will live up to your expectations.
To buy NFT, you’ll need a crypto wallet. The best wallet to go for is the MetaMask. But recently, MetaMask customers have been hit with phishing scams. You’ll get an ad asking for your private keys with a 12 digit security code; once you give in, your digital wallet is sucked dry.