This is just the January 2022 edition. 🥴
People who invest in non-fungible tokens (NFTs) and cryptocurrency alt-coins lost at least $4 million to scammers in the month of January, and that doesn’t even count losses to hackers.
One projecct, Blockverse NFT, made out with $1.2M USD, leading the NFT Ethics twitter account to wonder if there should be a centralized, vetted repository for projects to prevent these rug pulls?
Just heard about the @Blockverse_NFT rug. The project sold out yesterday in less than 8 minutes (500 ETH) and had 792 ETH in secondary sales. Discord & website closed and the anon devs are gone. Do we need a federated entity that approves all NFT projects and its doxxed founders?
— NFT Ethics (@NFTethics) January 25, 2022
More harm than good
If the goal of Cryptocurrency is truly to upend central banks by using a transparent, digital ledger to decentralize finance, aren't these kind of stunts ultimately doing more harm than good? Sure, there is always risk in any investment - just ask those who parked their money with Bernie Madoff - but there's something off about this new wave of Crypto finance.
Before investing in projects like the Blockverse NFT, ask yourself: does this pass the sniff test? Do you get a feint whiff of bullshit? Notes of a scam? Because in your haste to jump on the next big thing, you're really just helping to accelerate the global regulation of Cryptocurrencies.
Someone is making money on your investment, and it's likely not you.
