In 2021, the concept of "metaverse" was successfully detonated, and every industry was filled with the shadow of "metacosm", and with the blessing of metacosm, NFT also successfully achieved "breaking the circle" in 2021.
According to third-party agencies, the size of NFT transactions will reach $14 billion in 2021, which is 1.3 times the total amount of global art auctions of $10.57 billion in 2019.
So, before the various technologies supporting the "metaverse" world have not yet matured, and the legal nature, transaction methods, and supervision methods of NFTs have not yet been clarified, is your NFT safe?
First of all, let's do a test and guess how much this work is worth?
What about this one?
And this one?
The answers are announced below:
First: This "Boring Ape" head was photographed by Justin Bieber for about $1.3 million.
Second: About $23.7 million.
The third is: about 450 million yuan.
Did you guess that?
Why can these works be auctioned at such a high price?
Because they are NFT artworks.
NFT, full name Non-Fungible Token, means non-homogeneous token, with unique, indivisible and other characteristics.
NFTs naturally have collectible properties and can be used to record and trade some digital assets, such as game props, artwork, etc., and some celebrities prefer NFTs, and some even spend thousands of dollars on them.
On Opensea, the largest NFT trading platform, seemingly ordinary mosaic avatars, pictures, and collectibles frequently sell at staggering prices. According to the data, Opensea's cumulative sales so far exceed $10 billion, with an average price of $872 per NFT.
With the NFT fire, celebrities have stood on the platform; big factories have run in; Gucci, Burberry, Louis Vuitton, Balenciaga, Givenchy and other luxury brands have also entered the game... The NFT market has also ushered in a big outbreak.
According to statistics, the size of NFT transactions will reach $14 billion in 2021. Behind the prosperity of the charming NFT, the barbaric growth has spawned industry chaos, and the NFT has also appeared a series of security risks and crises.
Let's take a look at some of the NFT scams:
1. NFT fundraising fraud
Due to the popularity of the NFT itself, some criminals will use the NFT as an attraction point to launch activities that are essentially unrelated to the NFT to attract enthusiastic investors to inject capital. Such a move can easily constitute an illegal fund-raising act that lacks actual business activities.
In November 2021, the head of the "Evolved Apes" series of NFT projects was swept away by the explosion, and the official Twitter account and website of Evolved Apes disappeared. The project raised funds for the development and marketing of the game by selling its 10,000 unique "evolving ape" NFTs prior to the game's launch.
2. NFT airdrop trap
On September 21, 2021, a netizen's own wallet was stolen, losing high-value NFTs including Damian Hirst's "The Currency" work.
The netizen described that he interacted with the NFT airdrop that appeared in the account, thus losing 13.75 ETH, or about $41,300.
It is understood that hackers take advantage of the vulnerabilities before the platform, put malicious NFTs, users will trigger fake pop-up windows after viewing, in order to get these "free NFTs", users must interact with it, you need to click on the fake pop-up window "connect wallet", so that hackers can continue to steal assets in the user's wallet.
In addition, some scammers will implant scam websites, phishing websites, etc. in the hidden links of NFTs, and once the user clicks, the consequences are unimaginable.
3. Investment scams using NFT packaging
Douyin @ Li Yicheng Talk Capital shared a very classic investment scam using NFT packaging.
One practitioner said that his company has made jadeite into a "blockchain digital currency" form, and buying a piece of jadeite on the platform can receive an equal amount of "NFT digital jadeite currency", which can be freely exchanged for profit on their platform in the future. The price of jadeite is not only lower than the price of the brand's official store, but it can be refunded after three years. In addition, those who buy jadeite can also get the corresponding "NFT digital jadeite currency" reward by referring friends to buy, and get a certain stable income every month. At the same time, they also combined words such as "the company is about to IPO" and "passed the authenticity appraisal".
However, by the time investors bought the product three years later, the platform was already empty.
4. Fake NFT stores (phishing website fraud)
Criminals copy popular NFT retail sites, which obtain users' account and bank card information and then carry out fraudulent activities. Some so-called NFT stores sell non-existent products to users, but they are actually just trying to get information.
5. Counterfeit artists sell NFTs
Some projects are not actually authorized by the owner, such as famous paintings or songs, but directly forged into NFTs, and users need to buy carefully and learn to identify.
6. Social media scams
Criminals pretend to be customer service in encrypted communities or social media WeChat groups, QQ groups, etc., to gain trust, but their goal is the same, that is, to squeeze out the victim's wallet.
How to avoid pits?
How to avoid falling into the elaborate scams of others and ensure the safety of your own property?
First of all, the study of NFT is very important, and it requires a certain stage of in-depth understanding of the operation and market of the NFT market, which will allow you to take fewer detours and effectively avoid being harvested.
Secondly, when choosing an NFT platform, try to choose a mainstream, well-known, large user base, and high community activity platform, which is often very strict in the review of NFT copyright, and the quality of works is generally guaranteed. After purchasing the NFT, you must see the source of the work, whether there is official certification or with the help of the identification software on the market, provide the unique on-chain hash code of the purchased NFT for on-chain query.
The NFT market is full of scams and risks, and only by mastering relevant identification skills can we ensure the safety of our property to the greatest extent. Individuals with NFT-related security awareness is the most basic introductory course, in a word: although the digital collection is good, the collection also needs to polish the eyes!
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Metaverse these scams should also be careful
1. Fabricate false meta-universe investment projects
Some criminals hype up concepts such as game production, artificial intelligence, and virtual reality related to the metaverse, fabricate high-tech investment projects with many names, publicly and falsely publicize high returns, and take advantage of opportunities to absorb public funds, which has the characteristics of illegal fundraising, fraud and other illegal acts.
2. Fraud under the banner of "meta-universe blockchain game"
Some criminals bundle the concept of "meta-universe", claiming that "making money while playing games" and "short investment cycle and high returns" trick participants into investing by exchanging virtual currency and purchasing game equipment. This type of game is highly confusing, and there are risks such as running away from the volume.
3. Malicious speculation meta-universe real estate circle money
Some criminals use the concept of meta-universe hotspots to render the expectation of virtual real estate price increases, artificially create the illusion of rushing to buy, and lure them into the market to hoard and buy, and must be vigilant against such speculation and speculation risks.
4. Engage in meta-universe virtual currency illegal profits in disguise
Some criminals claim that the virtual currency issued is the future "meta-universe currency", inducing the public to buy investment. Such "virtual currencies" are often spontaneous air coins of criminals, mainly through price manipulation, setting thresholds for withdrawal and other behind-the-scenes means to illegally profit.
These fraudulent activities, under the banner of "meta-universe", are more attractive and deceptive, and participants are vulnerable to property losses.
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