NFT Scams (Non-Fungible Tokens) have been making waves in the world of art, collectibles, and more. With the rise in popularity, however, has come an increase in scams.
Unfortunately, many people are losing money to fraudsters who are taking advantage of the hype surrounding NFTs.
As someone interested in exploring the world of NFTs, you must be aware of these scams and know how to avoid them.
In this article, we’ll take a closer look at some of the most common NFT scams and what you can do to protect yourself.
Table of Contents
Degen
abbreviation for “degenerate”. It describes a person who places high-stakes wagers on NFTs.
Jewel Hands
We say that anyone who considers their NFT precious enough to hold for a long time has “diamond hands.” This is in contrast to having “paper hands.”
The Drop
This refers to the debut of an NFT. Example: Tomorrow is the first-ever NFT drop by Steve Aoki.
Gas fees
On the Ethereum network, gas is the cost incurred to accomplish a blockchain transaction. As payment for their computational work in validating the transactions and adding them to the blockchain, miners receive the fee.
GM
Happy morning. The NFT community utilizes this well-known acronym to greet one another.
GN
Goodnight. Gn is a shorthand for “goodnight” when concluding a text or online conversation and heading off to bed.
LFG
You should be aware that LFG is an Internet slang term first of all. LFG stands for “looking for a group,” and it has a straightforward definition in the online gaming world. Let’s Freaking Go is the game phrase for this acronym.
Mint
We refer to the process of establishing an NFT on the blockchain as “minting.” When we mint an NFT on a blockchain like Ethereum, we create the token and give it its own metadata that we can store, track, and exchange.
NGMI
Not going to happen. a derisive word for those attempting to take advantage of others.
Paper Hands
Paper hands” in a slightly unpleasant way refers to someone who sells an NFT for a short flip with the expectation of making a quick profit, instead of supporting the project long-term. In contrast to diamond hands, it.
One of One
This is in reference to NFT artworks that were printed in a single edition on the blockchain. Even if artists have the option to produce numerous copies of a single work, a one-of-a-kind piece is more precious because only one person can own it.
Open Edition
alternative to limited edition. Open edition drops let customers purchase as many NFT editions as they can within a set time limit, such as three minutes. The total number of NFTs that may be issued within that time period is unbounded.
WAGMI
We’re all going to make it, or WAGMI. A slang phrase with a hopeful connotation that everyone will eventually succeed in the NFT industry.
Now that you’re equipped with these amusing NFT abbreviations, LFG!
FAQS about NFT Scams and How to Avoid
Q1. What are NFT Scams?
A1. NFT scams refer to fraudulent activities that take advantage of the hype surrounding Non-Fungible Tokens. These scams can range from fake NFT marketplaces to phishing attacks, and Ponzi schemes, to name a few.
Q2. How can I protect myself from NFT scams?
A2. To protect yourself from NFT scams, it’s important to follow these steps:
- Only purchase NFTs from reputable marketplaces.
- Research the NFT project and the team behind it before making any purchases.
- Keep your private keys safe and secure.
- Be cautious of NFTs that promise unrealistic returns.
- Avoid clicking on links from unknown sources.
- Report any suspicious activities to the relevant authorities.
Q3. How Do I Know if an NFT Marketplace is Reputable?
A3. A reputable NFT marketplace should have a good reputation in the community, a transparent process for handling disputes, and secure systems in place to protect the users’ assets.
You can research the marketplace, read reviews, and check their history of handling user issues.
Q4. Can I Get Scammed if I Buy NFTs From a Well-Known Artist or Celebrity?
A4. Unfortunately, even well-known artists and celebrities can be targeted by scammers. So, it’s important to exercise caution and research the NFT project before making any purchases. Check if the artist or celebrity has officially endorsed the NFT project and if it is being sold through a reputable marketplace.
Q5. What Should I Do if I Have Fallen Victim To An NFT Scam?
A5. If you have fallen victim to an NFT scam, you should report the scam to the relevant authorities, such as the FBI’s Internet Crime Complaint Center (IC3) or the SEC’s Office of Investor Education and Advocacy. You should also take steps to secure your online accounts and protect your personal information.
Read Also: The NFT Market: Is it dead?
