What Is NFT Scams And How To Avoid It?

Google “NFT scams,” and you will certainly enter another realm.

Non-fungible tokens (NFTs) are a multibillion-dollar crypto business segment. While it continues to grow massively with time, so are the frauds and scams in the NFT world every passing day. If you are entering this industry and are afraid of the unstoppable NFT scamming, we have got your back. This blog post discusses the top NFT scams and how to avoid them.

Catfishing and False Identities

Because NFT purchases take place digitally and all marketing is done via social media, it’s simple to be duped. Popular NFT groups often engage influencers and celebrities to promote them, making it difficult to determine which are genuine.

How to Avoid?

Never reply to a direct message from someone claiming to be a creator, celebrity, or influencer. It’s general knowledge in the NFT world that C-level personnel will never DM you unless you first send them a message or reach an agreement in a public Twitter thread or Discord channel.

It’s similar to when you were a kid, and your parents instructed you not to give personal information to a telemarketer who contacted your home. In the NFT universe, the same rule applies: if someone DMs you first, don’t click links or divulge any secrets.

Pump-And-Dump Operations

Unfortunately, pump-and-dump strategies are becoming relatively common in the crypto and NFT realms. There have also been scams where people try to “pump up” the price of an NFT artificially by buying it and then selling it at a higher price. This is called a “pump and dump” scheme.

Similarly, you may have heard the term “paper money” in regard to non-scam NFT enterprises that have restricted liquidity due to a small number of aggressive purchasers.

How to Avoid the NFT Scam?

Examine the history and wallet records of any project you are considering. This is where the transparency of blockchain technology comes in useful. View the number of transactions and buyers for the NFT collection on any other NFT marketplace.

Bidding NFT Scams

Bidding scams often occur in the secondary market after you have acquired your NFT and wish to resell it to the highest bidder. When you sell your NFT, bidders may change the cryptocurrency utilized without informing you. You may earn $5 instead of 5 ETH (approximately $15,000 to $20,000) for your preferred NFT.

How to Avoid?

Always make sure to check the currency utilized and never accept a bid less than you desire. There are also fake websites that look like popular NFT marketplaces. Be sure to check the URL before you enter any personal information.

Fake Contests:

There have been fake contests where people are promised a chance to win an NFT if they send money to the scammer.

How to Avoid?

Don’t participate in any contest unless you are sure it’s legitimate to avoid such NFT scam. There are a lot of fake NFTs out there. Be sure to do your research before buying or selling an NFT. Check the artist’s website and social media accounts to ensure the NFT is real.

Scams Using Social Media:

Scammers also use social media to try to trick people. Be careful of any offers that seem too good to be true.

How to Avoid?

To avoid such NFT frauds, don’t click on links or give out personal information unless you are sure the person is who they say they are.

If you are ever unsure about an NFT or a person offering to sell you an NFT, be sure to do your research. There are a lot of scams out there, but you can avoid them if you are careful.

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