Investors had the impression that NFT influencers were buying
Artchick, an NFT influencer with more than 80 thousand followers on Twitter, warned her followers not to buy into the NFT project My Little Orphan, even though she is one of the largest holders of the NFTs. She explained that these projects mint large stakes of their NFTs into the wallets of influencers to give the impression that NFT influencers and other famous people are buying them.Bold and Brash Club is another project that used this trick to get collectors into their project. Collectors such as Pranksy, Digitalartchick, and also Mike Tyson seemed to have minted the project, but this was not the case. The reason projects do this is because many NFT investors track influencers' wallets and decide to buy into a project based on that information. The tactic My Little Orphan and Bold and Brash Club used shows that this is not always reliable information.
For collectors, it is hard to tell since the NFTs are minted directly into your wallet instead of being transferred to it. On Opensea, it looks to investors like they minted the NFTs themselves, but the project often uses the "mint to wallet function" in the contract. To avoid being tricked, you can use icy. tools. This tool lets you see if the NFTs were minted into a wallet or if the influencer actually minted them.
NFT scams are becoming more and more popular
Although most people in the NFT market have good intentions, scams are on the rise. Fake customer support members trick collectors into getting you to connect your wallet to a malicious website or giving out your seed phrase. Some NFTs such as Bored Ape Yacht Club, Cool Cats, and recently Crypto Toadz have become so valuable that it's attractive for scammers to steal them. The best way to avoid this is to use a hardware wallet that is not connected to the internet, and be careful not to click on suspicious links or give your seed phrase to anyone.As mentioned earlier, NFT projects do not always have the best intentions either, and https://cryptonary.com/journal/storage-solutions-for-your-cryptocurrencies/we are seeing similar behavior as during DeFi Summer. Projects use the hype of the NFT space to raise a large amount of money and rug pull their investors. Evolved Apes, for example, sold out in 10 minutes and raised $2.7 million. But the developers disappeared with the 798 Ether they had raised, and shortly after, the project's price crashed to 0.005 ETH.
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