This week, Sotheby’s announced the next sale of rare NFTs from bankrupt 3AC’s Grails collection seized by liquidators in July 2022. The highlight of this sale is Dmitri Cherniak’s The Goose, which is expected to fetch a golden sum. Meanwhile, Mercedes Benz has released a new NFT collection inspired by its luxury cars in motion and Nike is bringing its digital drip to the EA Sports gaming ecosystem.
The NFT space has seen a surge in popularity, but with it comes an increase in scams. Pixel Penguins, a dubious NFT project promoted by crypto influencer Andrew Wang, was recently exposed as a scam. To protect yourself from falling victim to similar schemes, it’s important to be aware of the most common types of NFT scams.
One of the most common types of NFT scams is the exit scam. This is when a project or team suddenly disappears with the funds they have raised. To avoid this, always do your research and make sure the project is legitimate before investing.
Another type of scam is the fake NFT. This is when a scammer creates a fake NFT and sells it as a genuine item. To avoid this, always check the authenticity of the NFT before buying.
A third type of scam is the Ponzi scheme. This is when a scammer promises high returns on investments, but in reality, they are just using new investors’ money to pay off old investors. To avoid this, always be wary of any project that promises high returns with little to no risk.
Finally, there is the phishing scam. This is when a scammer sends out fake emails or messages that appear to be from a legitimate source in order to get access to your personal information. To avoid this, never click on links or download attachments from unknown sources.
By being aware of these common types of NFT scams, you can protect yourself from falling victim to them.