5 Types of NFT Scams
With the potential for considerable financial profitability with NFTs also come a plethora of outrageous scams. #StaySafeOnline #HashTera
Non-Fungible Tokens (NFTs) have been on the rise in recent years. The ability to tokenize and assign unique ownership to artworks, music files, pictures, videos and much more, has made them highly desirable among collectors, investors and the general public.
However, with the potential for considerable financial profitability with NFTs also come a plethora of outrageous scams.
These scams, which have been steadily increasing in number, dramatically vary in approaches but are all united by the goal of swindling victims out of money.
Here are 5 Types of NFT Scams you should be aware of:
βLiquidity Seeking NFTsβ
The scammers circulate NFTs in the market and try to pump their value by offering them large amounts of liquidity.
By doing so, they hope to trick unsuspecting buyers into thinking theyβll become overnight NFT millionaires if they invest in these tokens.Sale of counterfeit NFTs
This one is relatively easy to deploy and requires little technical knowledge.
All the scammer needs to do is to replicate and pass off a fake NFT as real and hope that the buyer doesnβt notice until after theyβve purchased it.βShark Tankβ
The victims are promised an attractive return on their investments and asked to put up a large amount of money.
However, the scammer might not deliver on their promises and the victim will be left with no investment.βPump and Dumpβ
In this type, the scammers artificially increase the price of an NFT by buying large quantities at once and then quickly selling them at a much higher price. This type of scam is particularly damaging, as it manipulates the market and causes genuine investors to lose out.βPatched Artworkβ
This is where the scammers fraudulently create artwork and related NFTs and pass them off as real. By taking bits and pieces from other pieces of art, they can create a patchwork which is then sold as a genuine NFT.
The above-mentioned scams are simply some of the more common ones which have appeared in the NFT market. They all have the same aim of dupping unsuspecting people out of money or assets and they all have different ways of attempting to do this.
It is important for anyone who is investing in the NFT market to be aware of the types of scams out there so that they can be vigilant in protecting themselves against them. #StaySafeOnline
Hope this can be helpful for you!
Cheers from sunny Portugal π
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