NFT Scams Are on the Rise in 2024
The non-fungible token market started the new year bullishly, attracting traders, institutions, and businesses alike. The NFT frenzy has also attracted all sorts of scams. In this article, we shall assess five of the most common NFT scams and how you can protect your digital assets from these scams.
Phishing Scam
In a January 18 blog post, Peckshield, a renowned blockchain security firm, confirmed that scammers had just stolen three non-fungible token collections, including Beanz #16149, Beanz #12,990 and Beanz #607 NFT collection, on Blur.io in a phishing attack.
Pump And Dump NFT Scam
Launched in late 2022, Blur.io is an Ethereum-based NFT marketplace that caters to professional traders with its innovative trading features, user-centric fee structure, and integration with various marketplaces. Since its inception, the platform has traded over $5 billion in trading volume.
Rug Pulls NFT Scam
Blur allows collectors to sweep NFTs across multiple marketplaces, snipe reveals faster than others, and manage their portfolios with advanced analytics. As the Blur NFT marketplace continues to gain traction, the number of scammers looking to lure investors has also increased. Below, we have listed five NFT scams and how investors can avoid them.
Plagiarized NFTs
Phishing scams are the foremost internet security threat for your digital assets. In most phishing scams, scammers trick their victims into giving away vital security information by sending them fake links (phishing links) or emails that lead to malicious websites. It’s worth noting that cryptocurrency wallets and marketplace accounts are the common points of contact between NFT owners and NFT scammers. In this context, collectors should avoid any suspicious links and unofficial links from sources they don’t trust.
Impersonation
Phishing scams are the foremost internet security threat for your digital assets. In most phishing scams, scammers trick their victims into giving away vital security information by sending them fake links (phishing links) or emails that lead to malicious websites. It’s worth noting that cryptocurrency wallets and marketplace accounts are the common points of contact between NFT owners and NFT scammers. In this context, collectors should avoid any suspicious links and unofficial links from sources they don’t trust.
Hot Take
The NFT market is evolving rapidly, making it crucial for you to stay informed about the various scams out there. By understanding these common NFT scams, you can protect your digital assets and make informed investment decisions. Stay vigilant and always do your due diligence before investing in non-fungible tokens.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.