Here are the two basic scam methods. You can also press the button below to learn more about precautions and risks when investing NFT.
Through the use of two accounts, a simple NFT can be first bought at $100 and sold to another for $1000. This is called wash trading in order to boost value of a product, happening the same with stocks of physical sales. Due to the lack of governance on NFT as a good, it makes it far harder to track the criminality of the transactions.
Through a very inflated non-fungible token market, there are countless coins to buy from and millions of individual investors playing this game. With a sudden rise in popularity of one particular NFT, many would notice this particular coin and drive many others to motivate and buy them. Through hype and meme coins, millions invest in them and the scammers can just make a quick cash grab taking away it’s value by selling a large portion of their assets.
More than $100m (£85m) worth of non-fungible tokens were stolen in the year to July, research shows, with criminals making off with an average of $300,000 per scam.- Guardian
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