NFTs and FRAUD

NFTs and FRAUD

By Sir Loin | The Crypto Shenanigans | 4 Apr 2021


The entire history of the development of cryptocurrencies has been associated with fraud. The very first fraud in the crypto industry was the theft of cryptocurrency and the bankruptcy of large exchanges. A little later, ICOs became the most massive fraud. And the good idea of ​​crowdfunding crypto projects through the initial placement of coins ended quickly enough since the word ICO itself became a synonym for the word scam. Now, not a single self-respecting project will go to the ICO, since these three letters have completely discredited themselves.

The next boom was IEO, TGE, TSE, which also quickly became synonymous to the word “scam”.

Last year was marked by the start of a new global fever associated with the development of DEFI, which, due to its technological features, did not repeat the negative experience of the previous three-letter hypes. There is less human factor and more mathematics and smart contracts.

And now, 2021 is marked by a hype around a new scourge of another three letters - NFT. What is happening now on the NFT projects market already fully fits into the definition of fever and madness. Now tweets and ridiculous doodles created in Paint are sold for a lot of money.  Just mountains of digital garbage. Art pieces are burned, turning into a set of electronic signs. Bradbury turned quietly in his coffin.

And now the CEO of the blockchain company Tron, Justin Sun, bought Pablo Picasso's painting “Femme nue couchée au Collier” at the 20th Century Art Evening, organized in London. The purchase cost Sun $20 million. He plans to turn the painting into a non-fungible NFT token.

I would like to hope that Justin Sun will not burn the painting in front of the cameras, as they did in the USA with a copy of Banksy's picture. Soon we will come to the conclusion that there is be no genuine works of art left for descendants, and will start making NFT tokens from architectural monuments. Someone will buy Notre Dame Cathedral and burn it down, turning it into an NFT token.

But the saddest thing is that scammers of all colors and stripes are returning to our already well-worn crypto world.

A recent study by Bolster revealed the rise of NFT scams that are spreading at unprecedented rates on the network.

Suspicious domain registrations with the word "NFT" grew by almost 300% in March 2021 alone, amounting to an impressive 17 thousand. According to the study, scam replicas of NFT stores are in a bullish trend, as recent data show an increase in the number of domain registrations. Replica stores with suspicious-looking domain names such as “rarible”, “opensea” and “audious”.

Thousands of such scammers are found every week on Telegram, Facebook, Twitter and Discord. These are the most common ways to create fake ad campaigns.

Of course, the paintings were faked before, but now this phenomenon is reaching global proportions and the number of fakes will be in the millions. Read the report to avoid falling prey to scammers but better jusy stay away from this suspicious phenomenon.

READ ALSO: PART II

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