Now that NFT is becoming increasingly popular every day, NFT scams have already increased and become more complicated and sophisticated. It has become harder to identify false profiles in NFT marketplaces. When searching for NFT scams on Google, you will be directed to some of the NFT scam examples that are not as relevant in the current scenario.
Why scams are increasing?
Currently, the NFT market is booming and everyone is trying to make money quickly. Some people are looking for an easy way to make quick money through NFT but it is not the piece of cake. The top NFT projects currently are Bored Ape Yacht Club and Cool Cats. These two NFT projects have traded more than $30,000.
How you can identify scams?
With the growing number of creators and their NFT collections, it’s hard to differentiate between fake and genuine NFT. If you have trouble identifying NFT collections to invest in, just look at their utility. Blockchain technology will help you retain all trade records in real-time in the public ledger. Social media is another good tool to verify whether NFT is fake or not.
Each NFT has a community on Discord and Telegram where they provide all the latest news regarding their projects as well as special advantages. Before purchasing an NFT, be sure to do a thorough check on social media platforms, including Twitter, Instagram, and Facebook. The NFT community is extremely active on social media platforms, particularly on Twitter. They support the new artist or creator who is trying to develop their NFT artwork and build a community for them.
Three common NFT scams and how to avoid them?
Fraudsters can easily bait you if you are not vigilant enough. We have mentioned 3 common NFT frauds that many people have fallen into.
Suspicious pop-ups and Phishing messages
To purchase NFTs first, you need to set up a crypto portfolio and fill the portfolio with cryptocurrency. MetaMask is one of the most popular Ethereum wallets and there are many more wallets you can install. However, many people have complained of phishing messages and phony advertisements requesting the wallet’s security password. Furthermore, users have also complained about frequent pop-ups on Telegram and Discord.
How to avoid it?
Follow the general rule of thumb and ignore the pop-ups. Do not enter the security password in MetaMask pop-ups or other pop-ups. Keep the hardware back up to retrieve the password that is lost. You just need a seed phrase in order to create a hardware backup.
Fake profiles and cat phishing
The NFT minting and trading are done online and the chances of falling into cat phishing are also high. For the newbie, it is easy to catch bait because of a lack of NFT knowledge and experience. Plus, popular NFT communities hire social media influencers and other celebrities for their project promotion which makes it difficult to tell which one is genuine.
How to avoid it?
If you are receiving direct messages from so-called social media influencers who claims to be a creator of NFT collections ignore the message. It is common sense that famous influencers or celebrities will never send you direct messages until you ping them first.
Money laundering scheme
Money laundering schemes or pump-and-dump schemes unfortunately have become common in NFT as well as crypto. In this scheme, a group of people buy particular NFTs and drive the supply and demand of those cryptographic. Once the price is raised successfully they cash out all the money and leave all the other people behind. If you are planning to buy NFTs it is better to check the records of the NFT project.
How to avoid scams?
As mentioned above, it is better to check every aspect of the project before investing money. There are various ways to check the authentication of the NFT collections. First and foremost go through the transaction records of NFT which are available on the public ledger. You can see all the information including owner, creator, transaction, and price of NFTs. Other major platforms are Discord, Telegram, and Twitter where you can join the NFT community and get all the latest updates. All this information will help you to purchase NFT artwork.
About Krazy Kong NFTs
This is the perfect time to invest in the best NFT projects and earn money. If you intend on buying NFT art, then Krazy Kong is the one for you. It is one of the best ape NFT projects in 2022. Krazy Kong is one of the modern-day apes trying to forget his turbulent past and adapt to modern human society. One of the main goals of the project is to raise awareness about environmental and social issues such as animal rights, deforestation, inequalities, and conflicts within and between humans and animals.
Our NFT project is new and we are scaling it every day. We’ll soon announce whitelist spots and other giveaways. Join our Discord and become an early member to get special benefits.