NFT Collection

It is important to know what you are buying and who you are buying from.
This is true if you are buying your first NFT or adding to your collection. Knowing the types of NFT scams that bad actors will naturally help you stay safe and avoid NFT scams.

NFT scammers trick investors into buying NFTs in different ways. An NFT collection can turn out to be fake, unauthorized copies, or outright scams.

Recently, Pranksy, a famous NFT collector shared his experience. He got scammed via a fake auction. Fortunately, the scammer returned his funds. Yuga Labs, owners of Bored Ape Yacht Club is exploring the abuse of its intellectual property. The artist behind Hermes MetaBirkin NFTs is arguing the right to create art based on interpretations. In a separate case, Nike is challenging StockX for trademark infringement

Other cases have involved pump and dump accusations. Logan Paul’s NFT collection has received such criticism. He is not the only one identified by ZachXBT. Known as a scam buster ZachXBT has taken the time to investigate some public figures. As a result, he has called out Floyd Mayweather and, Paul Logan as well as other celebrities.


Types of NFT Scams
  • Shameless attempt to copy well know NFT collections
    • It is common to replicate, reproduce or clone NFT collections. Scammers cheat buyers into thinking they are buying the original collection.
  • Investor scams and Rug Pulls
    • Some creators of NFT projects do not deliver on their promise or disappear without a trace. Hyping NFT projects on social media is such a tactic. Creating websites and other material is also common. Following this, NFT scammers then delete everything. Which ultimately removes your ability to sell that NFT.
  • Pump and Dump
    • Generally occurs when a group of people buys up a large amount of NFTs and subsequently sell them for a quick profit. Additionally, it could also include a person with lots of influence. Such a person could promote the project. A promotion increases awareness of the NFT project. So when the price is at its peak the group of buyers sell out. This leaves other investors with losses.
  • Airdrops
    • Scammers use promotional tactics and NFT giveaways. They promise free NFTs for spreading the word and signing up on their sites. The buyers log in with their wallet information. Naturally, the scammers have access to it and anything inside the wallet. That is if you don’t adjust your permissions and security correctly.
  • Direct Messages, Suspicious Pop-Ups, fake personas, and adverts
    • Scammers will use tried and tested ways to cheat people. Tactics include phishing emails and fake links. This tricks people. They give away their private information.
      NFT scammers use this to gain access to digital wallets and drain the contents.
How to Stay Safe When Buying NFTs

Traditional art and objects need experts to identify fake items. For NFTs, everything is on the blockchain and on the web. With a few precautionary steps, you can stay safe and avoid scam NFT projects.

  • Verify the contract address, description and properties of the official NFT collection
    • NFT creators should be clear as possible. The NFT contract address should appear on official channels of the project. Properties and traits of the collection are visible to buyers. Fake NFT collections will have different details. The contract address will be incorrect. Equally, the title, description and other items could also differ.
  • Look for a strong community with high engagement
    • A good project will have many tweets, re-tweets comments and likes. Creating a high follower count is easy. It is much harder to create rich engagement and a strong community.
  • A good NFT project will have a high owner count and limited supply
    • The amount of unique NFT holders within a collection is a good sign. This means an NFT project cannot be easily influenced by groups of people who want to cash out in a hurry. If people are holding onto their NFTs and the collection has a limited supply, the demand goes up.
  • Look at the team behind the NFT collection
    • A good project will have nothing to hide. The team will believe in themselves and the NFT project that they are working on. Look at other projects that the team or team members have worked on. If there is little information about the team, proceed with extra caution. The team should dox itself.
Adopt Good Practices 

And there are other things you can do to ensure you are safe with all the collections you’re interested in.

  • Use a burner wallet for free mints and airdrops
    • A burner wallet is separate from your main wallet. Specifically, it is mostly used for temporary tasks. Free mint NFTs, receiving airdrops or interacting with a contract that is not audited.
  • Always be alert on your guard and proceed with caution
    • Don’t respond to direct messages. Especially if someone claims to be a founder, celebrity, or influencer. Double-check any adverts, and links you click on and practice safe browsing.
BAYC NFT collection details
Look for the correct spelling of the NFT collection name, verified tick mark, item count, volume and owners source: OpenSea


BAYC NFT property details
Always check for an accurate description of the NFT project, the collection properties and most importantly you have the correct contract address source: OpenSea

Careful analysis and knowing what to look for is essential. An investor can navigate their way through the complex and ever-changing world of NFTs. If there is money and buyers, scammers will always be around. It is important to be on your guard, informed of what you are buying and ensure you are buying from the correct source. As with any investment, a plan should be in place for how long you are intending to hold the NFT.

It would be great to see more NFT collections being independently audited. The collections market is fast-paced and continues to evolve. As the NFT market matures more tools will be available. More tools are necessary for NFT investors to verify NFT projects. Specically showing audit results and trustworthiness scores.

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⬆️Above all, find the most undervalued gems, up-to-date research, and NFT buys with Altcoin Buzz Access. Join us for $99 per month now.


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