NFTs, or non-fungible tokens, have gained a lot of popularity and attention in the cryptocurrency world in recent years. As with any new and rapidly growing market, there are unfortunately those who try to take advantage of others through scams. Here are some common NFT scams to be aware of:
Fake NFT projects :
Some scammers create fake NFT projects and promote them as legitimate investment opportunities. They may even go as far as creating a fake website and social media presence to try and lure in unsuspecting investors. It's important to do thorough research and due diligence before investing in any NFT project.
Pump and dump schemes :
Inspired by securities fraud, some scammers use pump and dump schemes to artificially inflate the price of an NFT. They may do this through spamming social media with false hype and buying up large quantities of the NFT themselves, leading to a temporary price increase. However, once the price reaches a certain point, the scammers will sell off their NFTs, causing the price to plummet and leaving late investors with devalued assets.
Lack of verifiable information :
When it comes to purchasing NFTs, it's important to make sure you can verify the identity and track record of the seller. Without this information, you may be at risk of being scammed. Be sure to find verifiable contact information for the NFT creator before transferring any money.
