5 Ways of Avoiding the Latest NFT Scams

5-ways-to-avoid-nft-scams

In the last 12 months, Non-Fungible Tokens have moved from an idea to a multibillion-dollar sector of the crypto industry. NFTs have taken the world by storm, and crypto enthusiasts love it! No one ever imagined that five to six figures would not be too much to pay for a digitally tokenized piece of art. NFT comes with many perks, and they cost a lot too. Today, you’ll learn how to avoid the latest NFT scams.

Naturally, good and bad people — or authentic people and ingenuine people migrate towards value and opportunities. And that is to say that the NFT world is not a space for angels and saints alone. Bad actors have found a way to creep in and try to share the spotlight.

Now, NFTs are still new but everywhere. And it is a sign that crypto adoption is sweeping most parts of the world. However, it is also a sign that new lucrative opportunities now exist for scammers. NFTs present opportunities that everyone deserves to take without losing their life’s savings. So how does one avoid NFTs scams?

This article will provide you with a list of the latest NFT scams to watch out for and how you can avoid them. Let’s dive in!

Latest NFT Scams and How to Avoid Them

nft scams

1. Scam Pop-ups And Phishing

To buy your first NFT, you must first create an Ethereum-based wallet.

NFT collectors prefer MetaMask for Ethereum. However, a recent phishing attempt asked MetaMask users for their private wallet keys or 12-word security seed phrases (a big red flag).

Also, scammers now use public forums like Discord and Telegram to propagate malicious pop-ups linking to MetaMask. A scammer with your data can access your digital wallet and steal all of your cryptocurrency.

How to avoid this NFT scam?

Remember that seed phrases are only necessary for hardware backups and crypto wallet recovery. It would help if you avoided pop-ups, including MetaMask, at all costs.

To make a crypto transaction, go straight to the verified website, not via links, pop-ups, or emails. Don’t even take a picture of your seed word; keep it hidden.

2. Catfishing and Fake IDs

Because NFT sales and marketing are all made online, getting scammed is easy. NFT communities often hire influencers and celebrities to promote them. This noise makes them difficult to verify.

How to avoid this NFT scam?

It would be best to ignore messages from founders, celebrities, or influentials. NFT personnel is well-versed in the protocol of never receiving a direct message from a C-level staff member without first communicating with them via Twitter or Discord. This act is similar to getting instructed not to give personal information to telemarketers as a child. If someone DMs you first, don’t click links or share secrets.

3. “Pump and Dump.”

Unfortunately, pump-and-dump scams are becoming more predictable in crypto and NFT. Many individuals buy NFTs or currencies, inflating their value and driving up demand. They profit from soaring prices while leaving those who didn’t engage with worthless assets.

Paper money describes non-scam NFT projects with limited liquidity due to a small number of enthusiastic purchasers. Investing in NFTs is better if the project has more buyers and thus liquidity.

How to avoid this NFT scam?

Examine the project’s past and current finances. The blockchain’s openness and transparency come in handy at this point. You can count NFT transactions and purchasers on OpenSea or another NFT exchange.

Using EtherScan, you may view all Ethereum transactions. Join the Discord and Twitter channels. Long-term liquidity, community, or aesthetic value requires an engaged investor and collector community. Also, a thriving online forum where individuals may discuss, engage and share information.

4. Auction Scams

Scammers usually target customers who have bought an NFT and want to resell it for the maximum price. Bidders may alter their currencies without alerting you. Instead of 5 ETH, you could get $5.

How to avoid this scam?

Never accept an offer below your targeted price. Just don’t!

5. Plagiarized NFTs

Remember that simply minting a work of art as an NFT does not guarantee ownership of intellectual property rights. Using OpenSea’s easy-to-use software, anyone may create an NFT from any photo or image, regardless of ownership rights.

Scammers and unethical actors can register a false OpenSea account and steal an artist’s work. Your NFT will be useless once the community exposes the scammer’s scheme.

How to avoid this scam?

Do your homework before buying an NFT from any marketplace to guarantee the artwork is genuine. On OpenSea and other NFT markets, look for the blue checkmark next to the artist’s profile picture.

Ask if the artist or NFT project has a Discord channel. Watch out for fake blue checks too. A blue checkmark on the profile picture indicates that the account has gotten verified.

Bonus

Buying NFTs can cause them to vanish. Why and is this unethical?

The blockchain contract and the actual artwork are different (the NFT).

OpenSea, for example, lets you add your mp3 music. Collectors place bids on your work and pay you in ether, creating a “smart contract.” The smart contract, not the blockchain, gets minted. When uploading files, the content and metadata are two distinct entities.

Remember that NFTs are solely about asset ownership, and the assets can be anything. So if you want to save digital artwork, house documents, or other stuff that arrived with the smart contract, you need a reliable platform.

Avoid NFTs that only contain a URL and an image. Without your knowledge or approval, the URL containing your page or artwork may get altered, leaving you with a token with no real meaning.

nft scams to look out for.

Bottom Line

A little due diligence will help you avoid NFT scams. Don’t blindly click on links or attachments from unverified sources (always VERIFY your sources)!

Before investing, be sure to scrutinize the project’s website, social media, and creators’ biography. Then remember to use trusted wallet apps and browser extensions.

NFT scams are on the rise. Anybody can hire an artist and have them make several NFTs, then have crypto influencers make a lot of noise about them. Remember, “noise,” “hype,” and “popularity” do not necessarily mean authenticity.

You can watch out for them by doing your research. The technology behind NFTs has the potential to transform the digital world. So rest assured that NFTs are not going anywhere anytime soon. The best thing to do is avoid getting scammed while making the most of this opportunity.