If you buy NFT you should beware of "Rug Pulls". This also applies to cryptocurrencies. Basically, Rug Pull means the "removal" of liquidity from a dex or dapp. If you are the victim of a Rug Pull, you will end up with a worthless token or jpeg. Clearly not all projects are Rug Pulls, sometimes they are poorly managed or just speculation. You can buy an NFT that rides the trend (high volumes), the hype goes out and the floor gradually collapses until it reaches 0. There can also be "legit" projects that are managed by incompetents and therefore the project fails. miserably.
You should consider that when you hear about a project (Youtube or social media), IF it is not a serious project... it may already be too late so you should be careful to buy. When a project is spammed around on Youtube, Telegram, social is already in full hype! If you want to speculate on it in the short term, you risk losing money. Remember that trends must always be anticipated and that holding can only be done with projects with a solid base (large investors, team dossed that was already within other successful projects).
IS OUR FOUNDER DEAD?
There are many Rug Pulls in the crypto world and there are new ones every day. I think one of the funniest was made in mid-October 2022 when during the mint of an NFT project a message appeared on their Discord where it was said that one of the founders was dead! Obviously it was a full blown Rug Pull.
Later some users who were scammed by this mint created the "Our Founder Is Dead" meme project. Clearly this is a degen project without any development or roadmap but with the stated purpose of trying to go viral by exploiting the wake of this story.
For example, "Evolved Apes Inc" sold out in about 10 minutes on the day of the mint, raising $ 2.7 million. Soon after, the website was shut down, the project founder deleted their Twitter account, and around 800 ETH were drained from the contract. The founder "Evil Ape" has deleted all social pages, disappearing into thin air.
One of the first things you should check before investing in an NFT project is its community. However you have to keep in mind that it is easy to create communities full of bots and with fake interactions. You can do this on both Discord and Twitter (buying followers, likes and comments). You think that you can also buy pages with a "verified" badge, at which point you just need to change the name of the page. It is possible both to create a new project and to imitate famous pages, in both cases you will be scammed! "Big Daddy Ape Club" was one of the biggest Rug Pulls on the Solana blockchain, where the founders ran out of community funds before a single NFT was minted on the blockchain.
The people behind this project escaped with $ 1.3 million riding the hype wave of monkey-themed NFT. Disappointed collectors found themselves empty-handed after sending funds to mint these NFTs, which never existed.
A particular case was that of "Mekaverse", not a Rug Pull as we know them but the drop of the legendary NFT was rigged by some insiders close to the founders. The founders did not escape with the users' money nor the project was abandoned but something unclear happened.
In general you should pay attention to the community, art (remember that a copy is still a copy! Bored Ape or Cryptopunk are unique projects and cannot be replicated), team and to the project site (you have to pay attention to any spelling errors because these are sites built quickly by inexperienced people). You can get info on NFT design using the DappRadar explorer: NFT Explorer (DappRadar)
Here you can find collections that are flagged by the users themselves: DegenMint
Are you interested in ways to earn crypto bonus? Check it out here: Some Sites To Earn Crypto Bonus (Old & New)
