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NFTs are a great way to get into crypto, but they can also be a bit trickier than traditional coins. You need to be very careful about which NFTs you buy and how to avoid scams.
Solana is the first NFT platform that embeds licenses and unlockable content when minting, with low trading fees (starting at 2% down to 0%), live mints and real-time analytics directly from on-chain data. Start trading now - no login required!
The NFT market has been flooded with fake NFT minting links, many of which claim to be from project organizers. These hacks are usually posted in Discord announcements channels and offer deals that look too good to be true — like "due to demand, we're minting 1,000 more NFTs!" or "we're releasing a new NFT every day."
Despite the promises of huge profits in NFT trading, many people fall victim to scams. These scams can be anything from fake NFT marketplaces to replica artwork and objects.
Similarly, hackers can also send out fake NFT offers, asking for wallet details and MetaMask addresses to steal cryptocurrency. To avoid these scams, always check the URL of a website.
The NFT market is still in its nascent stage, and a lot of fraudulent activity can happen. According to CipherTrace, a scammer can create a counterfeit NFT by using a domain name that resembles genuine marketplaces or NFTs.
This type of scam is known as a rug pull. It involves hyped-up NFT projects that solicit investment and, after collecting funds, abruptly abandon the project.
Two NFT projects that have fallen victim to this scam are Fashion Ape and Crazy Camels. The founders of both schemes reportedly collected $1.1 million and $1.6 million from holders, respectively, before they suddenly abandoned the projects.
NFT scams have become increasingly common, and they can be devastating to your wallet and your reputation. Scammers take advantage of people's desire to get involved with crypto and NFT, stealing their private keys and depleting their digital wallets.
Phishing scams are one of the most common NFT scams and occur when hackers use phony advertisements or emails to try to steal your wallet's private key information. These scams can also involve phishing pop-ups or links that redirect you to fake websites.
To prevent phishing scams, always use a reputable NFT marketplace when buying NFTs or selling them in the secondary market. Be sure to check the blue verification tick on the seller's Discord or social media account and review any online reviews.
Bidding scams also happen in the secondary market once you've purchased an NFT and are trying to sell it. The buyer might switch your preferred currency for a lower-valued one, so you'll end up receiving less than you were expecting.
