NFTs (Non-Fungible-Tokens) is a unique form of digital art that works as a crypto prices asset. These could trade in exchange for crypto coins; a platform like Kucoin supports the trade of NFTs; it lists those crypto coins through which you can trade NFTs. The main ones are SAND, XRP, and Ape Coin and altcoin exchange.
Although NFT trade is booming with the rise in awareness of Web 3.0, there are always some red flags that you should be aware of. As the crypto industry grew, so did the scams becoming more usual. Platforms like Kucoin, which aims to provide security for its user’s funds, have enlisted some of the most common NFT scams and a way to deal with these?
The most common scam that is conducted in most of the NFT marketplaces is the inflating the prices of an NFT; this occurs when the scammer creates a fake hype of an NFT that leads to an increase in its costs as it reaches the extent the scammer wipes of the investor’s investment which brings the value of NFT to zero.
The best path to avoid this scam is to look at the social media profiles of the developer and how the people have reviewed them. If they have high followers but a low level of engagement, then they are scammers.
It is one of the common scams that make victims to many crypto traders every year. If a website flashes onto your screen posing as an NFT marketplace, these websites might look legit. They will ask you to code your digital wallet for those who provide them the password to become a victim, and their money is wiped off.
The only way to avoid these scams does not provide your wallet password to any pop-up website that might look suspicious. Also, don’t forget to report these false websites.
This is also one of the common scams where scammers steal another artist’s work and sell these NFTs on the open market at higher prices than those who unfortunately become victims of these scams have NFT worth $0.
The best way to avoid these scams carries out proper research before buying an NFT and looking for a verified seller. The best way to identify a verified seller is to have a blue tick, such as an official Twitter profile.
Customer Support Scam
This is one of the trickiest scams that could pull on NFT investors and traders. In this scam, scammers pose as customer support agents and try to communicate with you by asking for your confidential information, such as digital wallet passwords. People become a trap in it as they think they are official customer support agents of the platform.
An excellent way to avoid this scam is to communicate on an official platform such as the social media of the NFTs developers.
NFTs scams have become more than usual. The significant part is that you can easily avoid them if you are strengthened with proper research. Don’t worry; inform others about these scams, so they don’t become victims of these.