NFTs have proliferated like wildfire this past year, and NFT scams trailed just close behind. But that’s nothing new since scams have always been there in some form. It’s just that scammers moved over to crypto, and now, to NFTs. Don’t worry since we got you.
Disclaimer
We are not financial advisors. The content on our website is for educational purposes only and merely cites our own personal opinions.
You’ll discover the number one simple trick to avoid NFT Scams at the end of this article. Then, let’s begin.
Lucrative Airdrops
Well, who doesn’t like gifts and free stuff? We’ve been more than happy to receive one. But suppose when you opened your wallet, and to your surprise, you found some tokens there that you’ve never seen before. It’s normal that you would think that perhaps you’ve been quite lucky to receive an airdrop. However, for what? Technically, if you don’t know where they came from, the best thing to do is hide them and never interact with them unless you are sure. Obviously, scammers use lucrative airdrops to lure unsuspecting victims, so always watch out.
READ MORE: 5 MOST POPULAR NFT Myths DEBUNKED
Never-ending Rug Pulls
And this is often pulled off by promoting a profitable new project. Then, suddenly, out of no reason, it would just disappear with the assets of those who invested. So, here’s the first step in preventing rug pulls. Always DYOR or “Do Your Own Research. Regardless of what you feel, still, thoroughly research that project before investing in it. Always never assume a project is legitimate merely because it looks official, and only trust what you can actually verify.
Discord Direct Message
Another amazing tool used by scammers is a direct message. And this scam has been common on Discord. For instance, if you try to ask a question on a Discord server, expect within minutes, you’ll receive messages from someone that you’ve won something. To make the fraud more believable, the scammers often impersonate a server’s admin. In most cases, they would offer you exclusive deals, discounts, and even free NFTs. So whenever joining a new Discord server, make sure to go to server privacy settings and turn off “allow direct message.”
Malicious Links
Very easy to point out, but still, many fell victim to clicking on suspicious links. And perhaps another term for this is a phishing scam. Since then, these links had been flooding our emails, and now they were also all over the Discord. And the way this works is that these links would take you to websites that are a carbon copy of the original. To dupe unwary visitors into connecting their wallets so then, the scammers can take their assets. So, never click a link unless it’s from someone you really trust. And in case a website asks for your wallet, make sure it’s the real one.
Rugged Influencer Promotions
Although most of this type of promotion isn’t a straight-up scam. Still, it’s unethical at best. In fact, if you haven’t heard it yet, quite a few celebs like Floyd Mayweather and even Kim Kardashian are getting sued. Yes, they were sued for promoting NFT scams on social media. So, again always do your own research first, and don’t always “APE in” on projects you’re not confident of what they were really about.
Use Hardware Wallets
Well, if scammers use modern technology to level up their schemes, we can do it as well. And it’s by using hardware wallets, like Trezor. For instance, you’ve got one, and you got compromised on the web. Surprisingly, what most hackers can only do is stare at your account balance. In other words, hardware wallets add an additional layer of protection.
Be Doubtful & Skeptical
Generally, if an NFT project sounds too good to be true, then it probably is. So this rule of thumb actually doesn’t just apply to NFTs but to almost everything in the blockchain. You cannot be blamed that it can be really hard to ignore the opportunity of extravagant promises or giveaways. Still, there were already millions of dollars that have been lost with these scams. And this is proof that many still fell victim to these malicious schemes.
So, just like the saying, “it’s better to be safe than sorry.” This means that you should be very assumptive and never let your guard down. If there’s to be doubt about anything with an NFT project, then you should. And if you still feel the same, then you better avoid that project.
READ MORE: 5 MOST POPULAR NFT Myths DEBUNKED
To be continued…