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In today’s world NFT is a craze by which people can make money by trading NFTs. NFTs or Non-Fungible Tokens are a kind of digital assets that come in all shapes and sizes including art, music, video game, image, and so on. NFTs offer creators and investors to include a string of code into their works so that they can share their works without any fear of piracy and also be sure that they will get paid directly through royalties and sales.
Small & Medium businesses are also looking forward to NFT projects for their marketing campaigns. The NFT market is growing globally and the NFT marketplace is expected to reach around $80 billion by 2025 globally. It is natural that there is huge money and there are scams. In NFT marketplaces there are some critical types of scams that may cause fraud and you may lose your money. Let’s have a look at what the NFT scam is and some of the most common NFT scams you should avoid reserving your ownership of your digital assets.
Like other investments, online investments also occur and cost victims a lot of money. For example, there is some NFT marketplace that are phishing sites where NFT scammers create a website just like the authentic one to dupe visitors into sharing confidential details such as your NFT tokens, crypto wallet private key, and so on. This may further compound as there is no real way that you can get them back your money. Such cases are happening very frequently in NFT Marketplaces.
The popularity of NFT is growing exponentially over the past few years. With this exponential growth of the NFT market scammers also uses the NFT marketplace to take advantage of unknowing buyers. Here are some of the common NFT scams.
Rug Pull scam is a common type of scam in which promoters or marketers of an NFT project hype it up through social media channels and suddenly stop backing it and they take investors’ money after the price has been hiked. As a result of stoop backing the price of NFT dramatically falls to zero, which leads to a great loss for the NFT investors and collectors. Another variant of the rug pull scam is where developers of NFTs remove the ability to sell the token where the buyers will be unable to sell as the developers have removed this ability.
A phishing scam is another common type of scam that involves phony advertisements through fake websites and pop-up ads that ask users for private wallet keys or 12-word security seed phrases. Once a user enters his credentials scammers possessions his wallet’s key and will hack the wallet and deplete all the crypto and NFT collection stored in it.
It is a type of scam that happens in every investment. It happens when NFT investors want to resell their NFTs in another market. Once investor lists their NFTs on a market, bidders may switch their preferred currency with low-valued cryptocurrencies without telling the investors. This may lead to potential losses.
This scam happens when scammers steal artwork and open a fake account in the NFT marketplace and list that stolen artwork for auction. Unsuspecting investors or buyers will then purchase that NFTs that have no value.
This scam refers to when a group artificially drives demands up an NFT. Unsuspecting investors believe that the NFTs have some value and join the auction and start bidding more. Once the bid goes up the scammer sells off the NFTs for a profit leaving investors with a useless asset.
These are some of the most common NFT scams that happens always in the NFT market. Investors and buyers must be aware of these scams. Without proper guidance or investigation, one must not bid or buy an NFTs. Our NFT consulting experts have years of experience in the industry and will guide you to buying a profitable and authentic digital asset.
This article leads you to know about the most common NFT scams and in the next article, you may know how to avoid these scams and enjoy a secure virtual buy & sell.