Scams are unfortunately becoming more and more problematic in the NFT sphere. Everyone, new and experienced collectors can get affected by losses.
In this article, we take a look at common NFT scams. However, new methods are emerging all the time, so watch your back and always be vigilant.
Pump & Dump
In pump-and-dump, a person or group buys a large amount of NFTs to drive up demand. Once the value has increased, the scammers dump all their assets and make profit, leaving everyone else with worthless NFTs and massive losses. A real project should have a lot of buyers, not just a few buyers selling and reselling. You’ll come across pump-and-dump scammers in both cryptocurrencies and NFTs.
Fake Twitter profiles
Being an NFT influencer isn’t easy: before they know it, an imposter has replicated their profile and is trading on their behalf on Twitter. So be careful. Watch out for twisted letters in the name, which they can’t adopt 100% and therefore have to modify slightly.
Many buyers and NFT enthusiasts follow the wallet activities of big collectors and influencers, and of course, scammers do not miss this opportunity to use malicious tricks. The developers sent NFTs to influencers and made it look like the influencers mined the NFTs.
NFT Giveaways / Airdrop Scam
Scammers often pose as legitimate NFT trading platforms on social media to promote NFT giveaways – also known as airdrop scams. The scammers usually promise a free NFT if you spread their message and sign up on their website. If you then want to link your wallet on their sign-up page, they have already gained access to your account.