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The massive growth of NFT creation, collection and sales in the past few years has led to a growth in NFT scams seeking to separate investors from their cash or cryptocurrency. In 2021, the NFT market grew by 21,000%, with $17.6 billion in sales, according to Fortune.
NFTs stored in cold wallets — digital wallets that can be disconnected from the cloud for maximum security — are typically safe from theft or hackers. But there are many NFT crypto scams and many ways hackers seek to profit off the NFT trend.
Understanding and avoiding the most common NFT scams can help you keep your investment safe. Of course, you’ll want to remember that NFTs are still highly speculative investments. You could potentially lose money on your purchase even if you buy a legitimate NFT and keep it safe from cybercriminals.
8 Common NFT Scams
Here are eight of the most common NFT scams:
- Rug Pull
- Airdrop
- Investment
- Bait-and-Switch
- Pump-and-Dump
- Counterfeits
- Hacking
- Phishing
Rug Pull: Sale of Fake NFTs
NFTs exist in…
