Virgil on How to Steer Clear of NFT Scams

Digitally tokenized artwork or NFTs are a rage all over the world. With the Bored Ape Yacht Club ($BAYC) non-fungible tokens selling in 6-figures, the rising demand for NFTs is primarily due to fear of missing out (FOMO.) However, as per NFT legend Virgil, investors and art collectors must dip their feet with caution in the NFT waters. According to Virgil, here are three ways to steer clear of NFT scams.

 

1. Pump and Dump Schemes

Pump and dump plots are frequent in the NFT and crypto space. A few creators and developers intentionally pump the prices of an NFT collection and dump it at an all-time high, leaving behind others who don't understand such money laundering gimmicks. 

 

"To avoid getting trapped in a pump and dump NFT show, investors must check the wallet records and history of the NFT," states Virgil,. An active community and social proof on Twitter and Discord is another way to check the credibility of a new NFT project, besides looking at the number of investors or collectors involved in the NFT.

 

2. Plagiarism

There are numerous instances where scammers open fake accounts on NFT marketplaces like OpenSea and sell lifted art that doesn't belong to them. "To avoid buying counterfeit artwork, it's important to do a thorough cross-examination on the official websites, Discord servers, and verified profiles on marketplaces," recommends Virgil,. 

 

Investors must also ask for a tangible digital format like a JPEG, PDF, or mp3 file of their artwork at the point of sale.

 

3. Phishing Attempts

Every online user is vulnerable to phishing, including NFT enthusiasts. Novices and players across the globe have reported NFT phishing scams, where pop-ups or ads on Discord servers or emails and DMs on social media platforms steal NFTs or empty wallets in seconds. 

 

"Art collectors must practice caution before clicking on any links and never share their 12-digit seed phrases," cautions Virgil.