NFT project Arcade.DAO is receiving flak from the crypto community for allegedly being a scam. The community is also taking issue with the NFT project’s use of copyrighted materials.
NFT project Arcade.DAO is under the scanner of many in the crypto community for allegedly being a scam. Crypto personality ZachXBT posted a tweet on March 29, allegedly that the scammer known as NFT Machine had returned with a new project.
He stated that it “appears to be blatant copyright infringement” and recommends “avoiding it all costs.” In the tweet thread, he talks about the history of NFT Machine, referring to an incident where a young Denver man was charged with deceiving investors in a scam. NFT Machine had actually made a threat to put ZachXBT “in the ground” in 2022.
Arcade.DAO claims to be a virtual arcade for your Ethereum wallets. The project appears to offer several arcade games stored on IPFS and described as “uncensorable.”
That raises the question of copyright issues, as the games are some of the most high-profile. The project states that next-gen games will comply with any DMCAs. It will also put out an official statement regarding our stand on copyright later this week.
Arcade.DAO Creator’s Previous Project Was a Scam
The previous project, which turned out to be a scam, was OpeNFT. Over 130 people invested 277 ETH in it, but it later rug-pulled. Eventually, investors got lawyers involved, which led to Tyler Gaye being ordered to pay $275,000 to seven investors.
ZachXBT commented on the case when the judgment was offered, saying that he was “glad to see the victims can finally have some closure.” It is uncertain if this project will come to a close, but its use of many well-known games is certainly going to draw attention.
NFT Scams Continue to Plague the Market
NFT scams are growing in popularity, taking off alongside the niche’s growth over the past few years. Scammers pull many types of scams in this sector, most commonly rug pulls, phishing scams, and pumps and dumps. Between July 2021 and July 2022, scammers stole more than $100 million worth of NFTs.
Two scams of note are the Frosties NFT scam, which saw the U.S. Department of Justice get involved. A fake Banksy NFT also saw someone lose over $360,000. Even the most popular collections experience scams, with one Bored Ape NFT collector falling prey to a Discord scammer.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/arcade-dao-under-fire-alleged-scam-copyrighted-material/