Various Youtubers have recently started to promote NFT a lot. Some people are trying to brainwash viewers by forming a clique with Youtubers. NFT scams are so widespread and the number of victims is soaring that it is very dangerous to get involved. There is a high risk that all your saved money will be taken away.
What are NFTs?
NFT is an abbreviation that takes the initials of “Non-Fungible Token”. A token is something like a mark that can be used as a substitute for money, such as medals and exchange tickets at game arcades. Non-fungible means non-substitutable. Before the advent of NFT, digital data could be mass-produced by copying and duplicating, and there was no scarcity value. NFT gives such digital data a unique value. NFT technology has created digital works that cannot be duplicated, and has become a rarity value, and is being put to practical use in fields such as copyright and real estate ownership certification, mainly in games and art.
Benefits of NFTs
- irreplaceable and unique
- Anyone can create and publish works
- No risk of damage or loss
In recent years, business Youtubers have been promoting NFT profusely, but most of them are fraudulent solicitations, so be sure not to get involved. There are also examples of Youtubers committing crimes in an organized manner. And in addition to Youtubers, scammers who advertise on Instagram and Twitter are becoming more prominent. Be especially careful if your favorite Youtuber is committing a crime. You may believe blindly and be cheated out of your money. So how do scammers actually commit fraud?
take away after sale
On June 30, 2022, the U.S. Department of Justice announced that it had indicted an NFT investment project operator called ‘Baller Ape Club’ for wire fraud and international money laundering. After the NFT sold out, the scammers took down their website and Twitter account and shut down the project. He is accused of stealing $2.6 million worth of investor funds in a so-called “runaway.” One of the most common scams in NFT, similar to cryptocurrency. Say that the currency will be newly listed, collect the investment amount, and then escape without listing. This runaway scam technique is called “Rug Pull”.
NFT consultant scam
There are also fraudulent consultants related to NFTs. It is a scam that steals seed phrases instead of teaching about NFTs, crypto assets, blockchains and Web3. A seed phrase is like a PIN for your bank account. If you know the seed phrase in 12 English words necessary to restore the wallet, you can freely handle the assets in the wallet.
make you buy fake NFT
It is easy to distinguish between genuine digital works that have already been converted to NFT and copied fakes, and it is also possible for someone to copy a genuine digital work and convert it to NFT. There are scams that misuse this mechanism and mislead people to buy genuine products. After the money is collected, the scammers run off and the investor loses a lot.
As a countermeasure against fraud, it is important not to act suddenly. If you buy it right away, you will be scammed out of your money. Think carefully and do your own research before deciding whether to buy. Because nothing is more dangerous than a quick decision. There is so much information on the internet these days that it is possible to do some research on your own.