While the support of many A-list celebrities accelerates the nonfungible token (NFT) boom in 2021 and 2022, some are promoting unspecified projects to fans without knowing whether they are legitimate or a scam. The practice remains popular in 2023 as the market recovers.
We just tricked Dillon Danis into promoting a fake NFT project. We paid $1,000 for delivery, they didn’t tell us it was there # ADand sent a copy that literally spelled out SCAM pic.twitter.com/SVo2SCoN9q
— Coffeezilla (@coffeebreak_YT) February 3, 2023
In the promotion, Danis tweeted a digital image with the URL of the website, which, according to Coffeezilla, “literally spells SCAM” Further investigation by Cointelegraph showed that the website was newly created on February 1, 2023 – an important clue to check when checking the credibility of a new project .
In addition, the website’s FAQ does not allow investors to hold NFT “Sourz”, important information that MMA fighters ignore.
A similar incident with Kim Kardashian was marked in June 2021 by the United States Securities and Exchange Commission (SEC) when she promoted the crypto token EthereumMax (EMAX) to her 330 million Instagram followers. According to the SEC, Kardashian violated the anti-touting provisions of the Securities Act by failing to disclose the $250,000 she received for the promotion.
However, Coffeezilla ensures that users who fall for NFT scam projects are immediately notified. When users click on the “Mint Sourz” button (as shown in the image above), they will be redirected to a website that is alert to possible fraud.
While Coffeezilla plans to share more information through a follow-up video, the incident is a strong reminder for influencers and investors to do their own research before promoting or investing in a project.
related: FBI seizes $100K in NFTs from scammer after ZachXBT investigation
Little Shapes NFT, a project to be launched in November 2021, is a “social experiment” designed to shed light on large-scale NFT botnet fraud on Twitter, according to its founder under the pseudonym Atto.
Thanks for everyone’s participation – Little Shapes is a social experiment by @BALLZNFT_
The exposure is real. Here’s how influencer rings and founders released $200,000,000+ from the ecosystem through 274 projects: https://t.co/BKMSqPVwzw
(158 pages) pic.twitter.com/gB5v21NCRo– Little Shapes NFT (BALLZ) (@LittleShapesNFT) February 1, 2023
“I need a story that sells to make sure that no one will ignore the story that hurts,” said Atto when explaining his intention to launch the NFT project.
Little Shapes is marketed as an upcoming avatar-style project with 4,444 NFTs that allows owners to interact with and exchange artwork in real time.