Chinedu David Okorie's Story on NFT Scams and His Solution

Chinedu David Okorie is the founder of Chix Enterprise, an African brand specializing in crypto trades and investments. With five years of experience as a crypto strategist, he has educated numerous crypto enthusiasts worldwide.

His Story

I came across NFTs about a year ago, it seemed like an interesting subject around the digital era revolution. There was a lot of information available on NFTs, but not enough education to prevent users from falling victim to fraud around such emerging blockchain technologies.

The truth is that 85% of NFT projects are worthless, and many will keep getting scammed if they invest without prior knowledge of the asset. Check web 3 is going just great. This is because NFTs have a lot of potential, but there is also a lot of potential for fraud and scams. The higher the demand for a product or service, the higher the risk of fraud.

In my case, after thorough market research, I came across an enticing NFT project that had launched its first series in early 2021 and achieved great success. This project aligned with my values and was led by a well-known entrepreneur whose work I admired. The project was preparing to launch its second series, so after extensive research, I decided to convert over £5,000 into Ether.

I had previously purchased multiple NFTs using the DeFi wallet, MetaMask, so I connected my wallet to the marketplace where the project's NFTs were traded because I had used this marketplace before. I purchased an NFT worth over £3,000. However, a few days later, I discovered that my NFT and all the crypto in my wallet had been transferred to another wallet without my consent.

After extensive research and reading about others' experiences, I concluded that connecting a MetaMask wallet to certain projects might require users to sign a smart contract. This contract could grant unlimited access to the account, allowing the transfer of funds without user authentication. It is likely how the fraudster obtained my data and misused it. They likely used a fraudulent or fake project to access my assets and waited for the right moment.

His Advice

Beware of Unrealistic Deals: Be cautious of deals that appear too good to be true. Scammers often lure buyers with unrealistically low prices or exclusive items.

Stay Informed: Keep up with NFT space news and developments. Being informed about the happenings in the NFT industry could help you avoid being a victim.

Enable Two-Factor Authentication (2FA): Use 2FA to enhance your account's security and reduce the risk of unauthorized access.

Diligent Research: Thoroughly examine the NFT, including its metadata and blockchain information. Ensure that it aligns with the description provided by the seller.

Different NFT Scams to watch out for

1.Phishing Scams: These scams involve the theft of your credentials to access your funds. They are common in the NFT market and can occur through fake websites and phishing emails.

Fake Websites; Scammers create fraudulent trading sites that request your wallet credentials to steal your crypto. Research and identify legitimate NFT trading marketplaces like OpenSea, Rarible, Mintable, and Super Rare.

Fake Phishing Emails: Always verify the source of emails, as fraudsters often impersonate popular NFT marketplaces using fake emails with phishing links leading to deceptive websites.

2.Rug Pull Scams: These scams occur when NFT projects are heavily promoted online with the involvement of famous personalities. This promotion builds trust and authenticity, attracting investors. However, the project is abruptly abandoned, and the creators and promoters profit, leaving investors with devalued NFTs and stolen original funds.

In conclusion, NFTs and crypto assets are still evolving concepts, and due to blockchain's immutable nature, users must exercise extra caution. Once your assets are stolen, they are irretrievable. Furthermore, blockchain entities are not subject to regulatory oversight, making users solely responsible for their assets' security.