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.