YouTuber baits MMA fighter into secretly shilling faux NFTs for $1K

Whereas the assist from quite a few A-list celebrities expedited the nonfungible token (NFT) growth of 2021 and 2022, some promoted unvetted initiatives to followers with out understanding in the event that they had been professional or scams. The apply retains its reputation in 2023 as markets recuperate.

We simply tricked Dillon Danis into selling a faux NFT undertaking. We paid him $1,000 to put up, he did not disclose it was an #AD, and posted copy that actually spells out S.C.A.M. pic.twitter.com/SVo2SCoN9q

— Coffeezilla (@coffeebreak_YT) February 3, 2023

Within the promotion, Danis tweeted out a digital picture with an internet site URL, which, in line with Coffeezilla, “actually spells out S.C.A.M.” An additional investigation from Cointelegraph exhibits that the web site was newly created on Feb. 1, 2023 — an vital clue to verify when checking the credibility of recent initiatives.

Furthermore, the web site FAQ mentions that no traders can pay money for the “Sourz” NFTs, an important piece of knowledge missed by the MMA fighter.

An identical incident involving Kim Kardashian was flagged in June 2021 by the USA Securities and Trade Fee (SEC) when she promoted EthereumMax (EMAX) crypto token to her 330 million Instagram followers. In line with the SEC, Kardashian violated the anti-touting provision of the Securities Act by failing to reveal the $250,000 she had acquired for the promotion.

Nonetheless, Coffeezilla ensured that the customers who fell for the rip-off NFT undertaking had been notified instantly. When customers click on the “Mint Sourz” button (as proven within the above screenshot), they’re redirected to an internet site that cautions towards a attainable rip-off.

Whereas Coffeezilla plans to share extra data by way of a follow-up video, the incident is a robust reminder for influencers and traders to do their very own analysis earlier than selling or investing in a undertaking.

Associated: FBI seizes $100K in NFTs from scammer following ZachXBT investigation

Little Shapes NFT, a undertaking launched in Nov. 2021, was a “social experiment” designed to make clear large-scale NFT bot community scams on Twitter, in line with pseudonymous founder Atto.

Thanks for taking part everybody – Little Shapes was a social experiment by @BALLZNFT_

The exposé was actual although. Right here’s how a hoop of influencers and founders drained $200,000,000+ out of the ecosystem over 274 initiatives: https://t.co/BKMSqPVwzw
(158 Pages) pic.twitter.com/gB5v21NCRo

— Little Shapes NFT (BALLZ) (@LittleShapesNFT) February 1, 2023

“I wanted a narrative that sells to verify nobody would ignore a narrative that hurts,” defined Atto when explaining his intent behind launching the NFT undertaking.

Little Shapes was marketed as an upcoming avatar-style undertaking with 4,444 NFTs that might permit homeowners to work together and alter the art work in actual time.