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From ‘rug pulls’ to counterfeits, here are the biggest scams in the NFT space

Investments

From ‘rug pulls’ to counterfeits, here are the biggest scams in the NFT space

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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.

 

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,…

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