You might not want to miss these biggest NFT scams this year!

From rug pulls to Ponzi Schemes, from the pump and dumps to counterfeits, NFTs scams have it all

Undoubtedly with the rise of cryptocurrencies and digital assets, a non fungible tokens wave emerged and rose like total madness. Grown-up and continuing to be a sensation, by the year 2021, the overall non fungible tokens had a valuation worth more than $22 billion worldwide. Following the trend, there was no shortage of individuals and intuitions who started looking to capitalize on the frenzy of nonfungible tokens. 

But where the capital goes, there follows the frauds and scams, especially its the place where people see a huge cash flow in a very short span. It attracted so many people with its illicit intentions. A nonfungible token or an NFT is a digital piece of the art secured by blockchain, a similar technology that almost all cryptocurrencies, including bitcoin and ethereum, use. 

Let’s take the most investor sentiment driving NFT, for instance, Everyday — The First 5000 Days created by artist Beeple. That NFT remained quite controversial where many people look at it as a worthless art piece while many others have commanded a significant price. The digital art piece sold for more than $69 million in March 2021, which is huge capital. 

Since an NFT is based on the blockchain, it confirms the ownership and makes it undisputable where all the records of sales and purchases are verified. Despite being secured by cutting-edge blockchain technology, and encrypted, these NFTs are not entirely safe, and it clarifies more while looking at all its high-profile scams and frauds. 

This year in February, there was a phishing attack on users of prominent NFT marketplace OpenSea. In this attack, hackers had high-value tokens on their target, including BAYC NFTs. Estimates say that about $1.7 million worth of loss was made during the attack. 

Let’s take another loss of cheating in NFT space, this time a rug pull. It’s about the Frosties NFT launched in January 2021 and attracted a significant number of people to the project. Take Marco Monardo, who lives in Oakville, Ontario, and is familiar with the project. Initially, it seems to him that he got some jackpot where he thought it would be a quick way to make money. He thought he just had to buy a picture and wait for a few months till someone would pay him more for it.

 The site looked quite genuine and professional; the project had its Discord server, where people used to interact with the project’s developers. It was all going well until the website shut down after selling everything that followed their Twitter going down along with all possible communication mediums. Later, Frosties NFT was a rug pull and stole more than $1.1 million from its inventors. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

Latest posts by Nancy J. Allen (see all)