Don’t Get Scammed Buying NFTs: Learn the New Vocabulary
There’s an old adage that you can’t cheat an honest man, but you can fool all of people some of the time if you know how to make your lies believable. The same principle applies to scammers trying to rip off crypto investors on decentralized marketplaces like OpenSea and Rarebits. The new scams aren’t new at all, but knowing the proper vocabulary will help you avoid them. Here are three scams that have become popular in the recent past, along with their technical names in this new field of emerging technology.
Trick 1 – Decentralized Marketplace
When you’re buying an NFT, you’re usually doing so on a decentralized marketplace. This means that there is no central authority regulating the marketplace. This can be good or bad, depending on how you look at it. On one hand, it’s good because it allows for more freedom and flexibility. On the other hand, it’s bad because there is no one to turn to if something goes wrong. So, before you buy an NFT, make sure you understand how the decentralized marketplace works.
If it’s done through smart contracts, then read up on them before you purchase anything. If they use a token-based system (where tokens are used as currency), then make sure you know what kind of token system is being used and what exactly those tokens are worth. You should also research any potential fees before making a purchase. These new features might sound daunting, but they could really save you from getting scammed in the future. Just make sure you do your research before jumping into anything.
Trick 2 – Centralized Management Team
A Centralized Management Team, or CMT, is a group of people who are in charge of a project or company. They make all the decisions and have complete control over what happens. When it comes to buying NFTs, be aware that some companies may try to take advantage of unsuspecting buyers by claiming to be CMT.
Do your research and only buy from reputable sources. If you’re not sure if an organization is really a CMT, ask them questions about their team structure and how they will be managing the company. If they can’t answer these questions, then move on to another seller. You’ll want to avoid those organizations because there’s no way for you to know how transparent they are with information.
Trick 3 – Trading Cards: Some organizations may use trading cards as collectibles when selling NFTs. The problem with this is that trading cards are often seen as kids’ stuff, so people don’t always realize that there might be consequences for breaking the rules when it comes to trading cards.
Trick 3 – Inflated Supply
One popular scam is called inflated supply. This is when someone creates a lot of fake NFTs and then tries to sell them to people at high prices. They might also try to trick people into buying these fake NFTs by saying that they’re rare or that they’ll be worth a lot of money in the future. If you’re thinking about buying an NFT, make sure that you do your research first. Check if it’s been verified on Ether Scan.
Make sure that there are no large fluctuations in price, which could mean it’s being manipulated. And always remember to be careful when using public chat channels! Always double-check links before clicking on them. Never give anyone access to your account, even if they say that they’re from the company where you bought the NFT from. It’s not unusual for scammers to impersonate customer service representatives to get control of accounts and steal information like passwords.
It’s possible for someone else to take control of your account without any hacking taking place. So don’t share anything personal with other users unless you know them well, because they can use this information against you later on. For example, if you mention something private in a chat channel and someone takes a screenshot, they might be able to post it as blackmail later on.