You are here because you have a question are NFTs a scam or they are legit. Let me start with an example, the Internet is a thing that has two sides negative and positive. You can use it for positive purposes like helping others and earning online for a living, You can also use it negatively like hacking, scamming, or for dark web illegal activities. So if I ask you internet is a bad thing or not? Definitely, it’s not.
Now let’s talk about NFTs. What if I ask you if NFT is a scam thing or not? As I have answered above in the example. Let me give more elaboration on this. NFTs are not scams but some projects. NFTs created a revolution because of blockchain technology. Artists can tokenize their arts on the blockchain and anybody can verify the ownership of NFTs on the blockchain.
Because ownership and transaction records are stored on blockchain publicly so anyone can see this data but no one can hack or manipulate it. So how can be NFTs are scam. This topic can not be summarised in a single answer to discover it. We have to deep dive into NFTs.
Are NFTs A Scam?
NFTs are spreading like a wildfire in the world and young creators and holders becoming millionaires by selling popular projects like apes. So everyone gets attracted to this technology and wants to jump in to become a millionaire without the web3 education. NFTs’ are not piece of cake that anybody comes and takes their piece, It requires education. Yes, I know NFT scams happen. Do you know why? Because of the lack of education. So you are the piece of cake to scammers without web3 education and you are the reason that you are scammed.
All NFTs are not scams but some NFT projects can be. Because how can be something scam-proof when money is involved in it. So NFT scammers do exist in the NFT space with their scams. Like every field, NFTs do have different types of scams. I will cover the different types of NFT frauds and how can avoid these scams in this post so stay connected. I have also written a complete post on how to avoid NFTs scams. You can also visit.
What NFT scams are happening?
There are many NFT frauds in the NFT world.
Rug pull:
Rug pull is a term used in the crypto world and it’s used for facking something to increase its value. So rug pul means in NFT that NFT creators create a project and promise to provide some legit utilities and perks to the holders to increase NFTs value. Once the collectors/holders invest their hard-earned money into that specific project. So the creators ran off with collectors all money and never show again. This is the most famous scam in the NFTs.
Link to a phishing site:
The discord app is used to connect with the NFT community. Almost every NFT creator creates a discord server especially to create an NFT community for its collection. So holders use this app to connect with the creators and get updates about the NFT collection.
Scammer copies the collection creator’s name, profile picture, and sends a phishing site link to holders. Novice holders click on the link that leads to some phishing site and site ask to connect their wallet with the site. So they provide username, password, and recovery phrase. After providing their personal details scammers vanish their all NFTs from the wallet and holders can not do anything. This scam also happened to one of the bored ape holders so the holder lost his thousand dollars NFT.
Fake NFTs:
NFT scammers also try to sell fake copies of popular NFTs. To do this they copy profile pictures and names of NFT creators on the NFT marketplaces. But you can easily Identify the original and fake creators.
Checklist to avoid NFT scams before you buy any:
Here are the points that you should check before buying or investing in any NFT.
Avoid ghost creators:
Do not invest in NFTs of ghost creators. Ghost creators mean anonymous creators that don’t show their identity. All of these creators are not scams. Some of the ghost creators created very successful and good NFTs collections. But try to avoid these types of creators. Try to invest in mature creators who have had successful projects in the past.
Don’t open spam links:
The NFTs collection team does not message you in the discord inbox. Most of the time these spam messages with links are from NFT scammers. So do not open any link and do not provide your wallet credentials to anyone.
Verify ownership of NFT:
Before you buy any NFT do not forget to check the ownership and transaction history for NFT. You can check easily these details on the blockchain. There are also many tools available in the market that you can use to check the NFT.
Learn first:
Education is first in every field of life. Everything can be dangerous without education. So before you invest in any NFT project I strongly recommend you learn web3 and blockchain technology first and how these things work. Start after you learn do not jump blindly and give your hard-earned money to the scammers. I have also written a complete guide on “What Is NFT Whitelist and How To Get One? Full Guide” and “What is Blockchain Technology and How does it Work?” that you can read.
Some popular NFT Scam stories for you:
NFT Scammers recently hacked the bored ape yacht club’s Instagram account and posted a phishing link. So the community supporters and holders clicked on a link that leads them to a phishing site and holders lost their $1 million worth of NFTs. Yacht Club is giving away free NFT to scammed holders and apologizing for this.
Opensea is the most popular marketplace for buying and selling NFTs so recently during an update hacker, hacked their smart contract and stole $1.7 million worth of NFTs. Hackers basically completed a smart contract and shifted the collectors’ NFTs to their wallets. Opensea is trying to overcome these types of hacks and compensate the affected users. So these are the hacks that you can not avoid.
Final thoughts:
So I have tried to answer are NFTs a scam? and covered all the important points. My favorite point is education. I would love to know your favorite point from my research in the comment section. You can also ask questions and give suggestions below in the comments. I would love to answer.
