NFTs have recently become a hot commodity in the art and collectibles world, but their popularity has also attracted scammers and fraudsters. NFT fraud methods are constantly evolving, making it important for buyers and sellers to be aware of the risks. In this article, we will explore the different types of NFT fraud methods and provide tips on how to avoid falling victim to them.
There are many examples of NFT scam methods that, if you are not careful, you will lose your valuable NFTs. In this section, we explain the most common ones :
The phishing method is one of the old but frequent methods. Buying from a fake website with a fake domain makes phishing possible. In this method, the scammer uses strange conversations or gives you some offers and encourages you to enter your wallet information on the fake website. Of course, you should never enter your wallet information anywhere!
With this deception, millions of NFT dollars have been stolen so far. A general review shows that $600 million NFT has been stolen so far! For example, they have created a website similar to OpenSea, which you will notice the difference only when you pay attention to the website’s domain. If you don’t pay attention, you can quickly enter your information on the fake OpenSea website.
Related Post: OpenSea is a marketplace for NFTs. To get to know other marketplaces, you can click and read the article about the biggest NFT marketplaces.
2. Pump And Dump
You should always research the project and its members. Solid projects are usually supported by a registered company whose members are known. Trusting the words of an influencer is not enough. Many influencers are willing to lie at a high price. They earn from advertising. Almost none of the influencers do any checks on the authenticity of the content they advertise.
By doing this, they pump NFTs of the project, which means an emotional price increase. After selling their NFTs, they don’t continue advertising because they don’t need it. On the other hand, the users who bought NFTs want to sell them after a while. As a result, the project’s price drops significantly, which is called a dump. Now, you’re left with one or more NFTs that are no longer worth anything.
So be more careful about this.
3. Rug Pulls
Rug Pull is one of the most common scam methods in crypto and NFT. In this method, after some time has passed since the launch of the NFT project and they had enough sales, the project is abandoned at once, and the cash collected through the sale of NFTs, which should have been spent on the development of the project, is taken out. The purpose of such projects is to defraud from the beginning, and they advance the project with this goal in mind.
Features of Rug Pull projects typically include:
- These NFT projects appear suddenly.
- NFT project team members are anonymous.
- A registered company with a specific name and brand does not support the project.
- NFTs are copies of other projects.
- The NFT project website is usually unprofessional, simple, and copied.
- Lack of presence on social networks.
In short, Rug Pull scams happen mostly to uninformed investors, so to avoid this type of scam, check the various aspects of an NFT project. The Bored Hamster NFT project has provided informed investors with a specific policy on its website to take the steps of the project one after the other and surprise you with your support and trust!
NFTs are a revolutionary technology that has transformed the art world and provided artists with a new avenue for income. However, as with any new technology, there are those who seek to exploit it for their own gain.
Buyers and sellers must remain vigilant and take necessary precautions to avoid falling victim to NFT fraud methods. By staying informed and taking appropriate measures, we can ensure the continued growth and success of the NFT market.
In this regard, you can read the opposite article to check the cases introduced as scam potential so that you don’t get scammed. Learn more about essential things to check before buying NFT