Celebrity-Backed NFT Projects That Turned Out To Be Scams!

There is a growing number of NFT scams that capitalize on celebrity marketing. With the right marketing strategies, even the most mundane projects can generate a lot of hype in the short term. The problem is that when the hype fades, investors are left with only worthless NFTs.

The Bored Bunny NFT

Arguably the largest NFT scam project ever, it was launched in December 2021 for 0.4 ETH each with the slogan 'Ready to take over the Metaverse and NFT space'. The project consists of 4,999 Bored Bunny NFTs. Bored Bunny has raised more than $20 million. Also, thanks to its celebrity marketing, Bored Bunny NFTs gained significant popularity in the first place. Moreover, its community grew rapidly. Some of the famous people helped promote the project, including Jake Paul, DJ Khaled, David Dobrik, Floyd Mayweather and French Montana.

Trollz Collection

The Trollz Collection, launched on October 28, 2021, contained 9,669 Tekashi-inspired avatars after one of the project's Discord admins acted rashly and launched a bot attack against the community by circulating fake minting links that scammed users out of their money. The team stopped allowing new editions after the hack. It also chose to limit the project to 4,797 NFTs. Additionally, Tekashi removed social media posts promoting the project and the NFT avatar from his social media profiles.

Rich Dwarves Tribe

This NFT project emerged in December 2021. It was also first released in January 2022. Musicians such as BowWow, NeYo, Fred Durst and Jason Derulo have been very supportive of the Rich Dwarves Tribe project before its launch. Users expected an incubator for cryptocurrency projects, features advertised in the Metaverse, as well as free products, incentives and NFTs promising to issue tokens. However, shortly after the project's initial release, its creators disappeared along with the funds they had raised.

Swipathefox

NBA player De'Aaron Fox, who claims to have overextended himself by launching the project in January during the peak of the NBA season, is accused of stealing more than $1.5 million through the Swipathefox NFT project. He reportedly promised to release 6000 unique NFTs as a project, as well as special bonuses such as raffles and private chats with him. However, the promised benefits were not delivered.

The Eternal Beings NFT Collection

Rapper Lil Uzi is another star who gained fame for his involvement in the NFT scams. After much talk about it among his nearly 8 million Twitter followers, the NFT collection was released in late September last year. It was also short-lived, disappearing almost immediately. Uzi removed all information about the NFT collection from its website and abandoned the project altogether. As a direct consequence, the price of NFTs has dropped from an average mintage price of 2.5 SOL to about 0.13 SOL.

What Should We Pay Attention To?

In recent years, the NFT sector has experienced rapid growth, with leading markets generating billions of dollars in revenue. This amount of success has inevitably attracted scammers willing to use rug pull to take advantage of unsuspecting investors. Apart from following the advice of popular celebrities who know nothing about NFTs, investors need to be educated. They also need to educate themselves enough about the industry. As with cryptocurrencies, investors are completely alone in NFT projects. Researching NFTs is as important as researching a cryptocurrency. The team should be thoroughly vetted. The deliverability of the benefits should be assessed. When investing in a collection that is not expected to provide excessive benefits, the amount of risk should be carefully calibrated. As the sector progresses, so will the methods of fraud. The same system works in all sectors in the world. Attacks on a sector are always directly proportional to the progress of the sector. Source: nfxhaber.com Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!