With the continually surging popularity of cryptocurrencies and NFTs, there has been an increase in scams targeting unsuspecting consumers. Even “
crypto winter” hasn’t slowed grifters looking to make big bucks by ripping off crypto and non-fungible token enthusiasts. In an August report, blockchain analytics firm Elliptic noted that investors had lost $100 million to NFT scams between July 2021 and July 2022. That was pocket change compared to cryptocurrency thefts—also in August, blockchain analytics firm Chainalysis reported $1.6 billion in total crypto losses from hackers attacking services designed to help investors transfer digital assets from one network to another.
Moneymaking potential in cryptocurrencies and NFTs is touted across the web, but the potential for digital highway robbery is just as great. That’s why it’s a good idea to armor yourself with information about how to avoid the many dangerous dark alleyways found along the blockchain’s supposed paths to wealth.
Scams can take many forms, from fake investment opportunities to phishing attacks. For example, “Web 3 Is Going Just Great”
reports that in May 2022, a crypto project was launched with the title “Day of Defeat.” The project’s developers called it a “radical social experiment token” that promised, “to give holders 10,000,000X PRICE INCREASE.” This meant anyone who purchased $1 of the token would receive massive rewards.
By the time the token’s price…
