From ‘rug pulls’ to counterfeits, here are the biggest scams in the NFT space
With sales reaching an estimated $17.6 billion US in 2021, there has been no shortage of people and businesses looking to capitalize on the rise of non-fungible tokens (NFTs).
And fraudsters are no exception.
An NFT is a digital asset, typically a piece of art, secured through the blockchain, the same technology that underpins cryptocurrencies like bitcoin.
The price of an NFT is largely driven by investor sentiment — many are regarded as worthless, but some have commanded huge prices, such as Everydays — The First 5000 Days, by artist Beeple, which sold for more than $69 million US in March 2021.
Christie’s is proud to offer “Everydays – The First 5000 Days” by <a href=”https://twitter.com/beeple?ref_src=twsrc%5Etfw”>@beeple</a> as the first purely digital work of art ever offered by a major auction house. Bidding will be open from Feb 25-Mar 11.<br><br>Learn more here <a href=”https://t.co/srx95HCE0o”>https://t.co/srx95HCE0o</a> | NFT issued in partnership w/ <a href=”https://twitter.com/makersplaceco?ref_src=twsrc%5Etfw”>@makersplaceco</a> <a href=”https://t.co/zymq2DSjy7″>pic.twitter.com/zymq2DSjy7</a>
Ownership of an NFT is meant to be undisputable, as the blockchain acts as a digital ledger that records and verifies every sale and purchase. Yet despite being encrypted, NFTs are not totally safe, and 2022 has already seen its share of high-profile heists.
In February, hackers launched a phishing attack on users of OpenSea,…