5 Popular NFT Scams and How to Avoid them

The emergence of NFT paved the way for creative artists to monetize their passion on a new level. Artists and content creators began to create NFT collections and sold them for as high as thousands of dollars.

The NFT boom does not only benefit creators. NFT collectors who are an integral part of the NFT space also take pride in showcasing their NFTs to the world.

Amid the creators and collectors lies the scam zone. NFT scams are growing daily, making people lose their digital assets to fraudulent activities and individuals.

Below are NFT scams you need to watch out for:

• Rug pulls: Rug pull is one of the popular forms of NFT scams. Rug pull happens when scammers create or promote fake NFT projects. They do this by promising potential collectors that they'll rake in a lot of profit with the project. Projects like this get lots of social media hype. However, once the NFTs are purchased, the creators remove the ability to sell the NFTs. This will then lead to an unprecedented fall in the value of the NFT, thereby leading to the sudden disappearance of the project itself.

• NFT Giveaways/Airdrop scams: Some scammers use social media to promote NFT giveaways. This is done by telling interested users to sign up on a platform or download an app. They'll be required to fill in their wallet address for the NFT drop. The scammers, in turn, would gain access to the users' wallet addresses and make away with users' tokens or NFT assets

• Counterfeit NFTs: Scammers often copy or steal artwork and list it for sale on legitimate websites. It will be made to look so real that uninformed individuals would have purchased the NFT asset before finding out that it is a counterfeit. The fact that it is a counterfeit renders the NFT valueless.

• Phishing: Scammers steal NFTs by creating phony advertisements, emails and pop-up ads containing an irresistible offer which will redirect people to a fake website. On the website, users will be required to provide their wallet keys to claim the said NFTs. Once the wallet key gets to the scammer, they can quickly access an NFT collection or tokens in the user's wallet.

• Impersonation: Scammers also use social media impersonation to trick people into buying their fake NFT artworks. They do this by replicating the profile of a famous NFT artist, collector or NFT influencer.

Safety Tips to Protect Yourself From NFT Scams

1. Ensure to verify the web address of any NFT marketplace you are logging into or making purchases. Double-check by asking Google for the correct web address when in doubt.

2. Ensure you crosscheck the social media pages of any NFT project for verification purposes or to check out their credibility.

3. In case of impersonation, you can always place your judgment on the blue-tick verification icon beside the name of any famous social media individual or company.

4. Look out for verifiable information regarding the NFT creator you're purchasing their artwork.

5. To prevent falling for rug pull scams, use blockchain explorer and rug pull detection tools created for that purpose

6. In cases of NFT giveaways, ensure you use a wallet address different from your main wallet address. You can decide to have a different wallet address just for giveaways.

Author Bio

Aladodo Abdus-Salam is a cross-sectional content writer who spends his time writing articles on tech, blockchain, finance and personal development. LinkedIn: https://www.linkedin.com/in/aladodo-abdus-salam